In its official response, the Ministry clarified that MGNREGS is a demand-driven scheme, and the release of funds to States and Union Territories (UTs) is a continuous process.
Published Aug 03, 2025 | 12:07 PM ⚊ Updated Aug 03, 2025 | 12:07 PM
A group of MGNREGS workers in Kerala. (Facebook)
Synopsis: The Ministry of Rural Development has revealed that over ₹14,600 crore in dues under the MGNREGS are pending across India. The five southern states alone collectively account for ₹5,020.16 crore of the total dues, approximately 34.37 percent of all outstanding payments nationwide.
The Ministry of Rural Development has revealed that over ₹14,600 crore in dues under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) are pending across India, sparking concerns over fund disbursement and wage delays for rural workers.
The information came in response to a question by MPs E. Tukaram and Rajeev Pratap Rudy during the Lok Sabha’s Monsoon Session on 22 July.
According to official data, the total dues under MGNREGS stand at ₹14,603.94 crore.
Among the states, Andhra Pradesh, Uttar Pradesh, and Rajasthan have the highest outstanding amounts, collectively accounting for nearly half of the total pending dues.
Andhra Pradesh: ₹2,864.31 crore
Uttar Pradesh: ₹1,765.15 crore
Rajasthan: ₹1,687.39 crore
Dues to South Indian states.
These three states alone are awaiting over ₹6,300 crore in pending payments from the Union Government under the scheme, which is designed to provide at least 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
A closer look at the data shows that the five southern states alone collectively account for ₹5,020.16 crore of the total dues, approximately 34.37 percent of all outstanding payments nationwide.
Andhra Pradesh tops the chart in the South with ₹2,864.31 crore pending, followed by Telangana at ₹939.47 crore. Tamil Nadu (₹464.01 crore), Kerala (₹377.57 crore), and Karnataka (₹374.8 crore) also report significant unpaid dues.
34% due to South Indian states
In its official response, the Ministry clarified that MGNREGS is a demand-driven scheme, and the release of funds to States and Union Territories (UTs) is a continuous process. “States/UTs furnish fund release proposals to the Government of India. Fund release is carried out in two tranches, each consisting of one or more instalments,” the Ministry said.
As of now, ₹44,323 crore has been released to states in the current financial year. This figure includes payments toward liabilities carried over from the previous year.
The Ministry added that wage payments are processed via Direct Benefit Transfer (DBT) directly into the accounts of beneficiaries. These payments are sanctioned daily through the Public Financial Management System (PFMS), contingent on the receipt of fund transfer orders from states.
However, despite this mechanism, delays in wage payments remain a pressing issue, often attributed to procedural lags and fund allocation bottlenecks.
The pending dues are particularly significant in light of the scheme’s importance in rural employment and poverty alleviation. MGNREGS plays a crucial role during economic downturns, agricultural off-seasons, and natural disasters, often serving as a fallback source of income for millions of rural households.
While the Union government maintains that funds are released regularly and the payment system is functional, the data points to a substantial backlog.
With over one-third of the dues concentrated in South India, and states like Andhra Pradesh and Uttar Pradesh bearing the brunt, questions remain about how soon the pending payments will be cleared to ensure the uninterrupted implementation of one of the world’s largest public employment programmes.
MGNREGS dues across India
(Edited by Muhammed Fazil.)
