Centre Releases ₹81,502.62 Crore Under MGNREGS In FY26; Pending Liabilities At ₹18,862 Crore

The government has announced that more than ₹81,500 crore has been released to states and Union Territories under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in the current financial year. The information was shared in a written reply to the Lok Sabha by Minister of State for Rural Development Kamlesh Paswan.

The ministry clarified that wage payments continue to be made seamlessly through a direct transfer mechanism to beneficiaries. However, several states maintain outstanding liabilities for wage, material and administrative components.

Fund Releases Under MGNREGS In FY26

As of March 11, 2026, the Centre has released ₹81,502.62 crore under MGNREGS for the 2025–26 financial year. Out of this, ₹65,875.13 crore has been allocated towards wage payments, highlighting the scheme’s focus on rural employment.

An additional ₹15,627.48 crore has been disbursed for material and administrative expenses. Wage payments are being processed through the DBT system to ensure timely transfer to workers’ accounts.

Status Of Pending Liabilities Across States

Pending liabilities under the scheme stood at ₹18,862 crore as of March 11, 2026, reflecting outstanding obligations across multiple components. This includes ₹8,688.29 crore in wage liabilities, ₹9,692.28 crore in material dues and ₹502.42 crore in administrative expenses.

The data indicates delays that are yet to be fully addressed, particularly in wage payments. The government stated that all admissible wage liabilities up to FY 2024–25 have been cleared, except in the case of West Bengal.

Fund Freeze for West Bengal

The government reiterated that the release of MGNREGS funds to West Bengal has been stopped since March 9, 2022. The action was taken under Section 27 of the MGNREG Act due to non‑compliance with central directives.

The ministry further stated that a proposal to revise the state’s Labour Budget for FY 2021‑22 was not approved by the Empowered Committee for the same reason. West Bengal therefore continues to remain excluded from fresh fund allocations until compliance issues are resolved.

Direct Benefit Transfer and Payment Mechanism

The ministry emphasised that the DBT system remains central to ensuring transparency and accountability in wage disbursals. Payments are credited directly to workers’ bank accounts, reducing delays and leakages.

The government stated that it remains committed to clearing admissible dues and maintaining uninterrupted wage flow across compliant states. The current pattern of allocations reflects ongoing demand for MGNREGS‑supported employment and material‑related works.

Read More: PM KISAN Completes 7 Years with Close to ₹4 Lakh Crore Disbursed.

Conclusion

The Centre’s release of ₹81,502.62 crore under MGNREGS in FY26 underscores the scheme’s continued importance for rural employment and infrastructure creation. While wage payments are being processed routinely through DBT, states collectively hold pending liabilities amounting to ₹18,862 crore.

West Bengal remains the only state without fresh allocations due to unresolved compliance issues. The government’s reply highlights both the scale of ongoing financial support and the administrative challenges that persist under the rural employment programme.

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