New Delhi, May 04: The Centre has released over ₹17,744 crore as the first instalment towards wage payments under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for FY27 through Direct Benefit Transfer (DBT), ensuring timely and transparent payments to workers.
For FY27, ₹30,000 crore has been allocated to clear pending dues ahead of the transition to the upcoming Viksit Bharat GRAMIN (VB-GRAMIN) programme, which carries a significantly higher budgetary outlay of ₹95,692 crore.
Government data shows that over ₹81,500 crore was released in FY26, including ₹65,875 crore for wages and ₹15,627 crore for material and administrative expenses. While employment generation dipped marginally at the start of FY27, approved person-days rose to 43 crore in May from 30 crore in April, indicating a recovery in demand.
The transition to VB-GRAMIN is positioned as an upgraded framework, offering a statutory guarantee of 125 days of employment compared to 100 days under MGNREGA, along with higher wages, unemployment allowance, and legal safeguards such as interest payments for delays.
Over the past decade, the government has released more than ₹7.81 lakh crore under MGNREGA, leading to the creation of 8.07 crore rural assets—substantially higher than the ₹2.13 lakh crore spent in the previous decade, which created 1.53 crore assets. Employment generation has also increased by 82%, reaching 3,029 crore person-days.
The scheme continues to focus on agriculture, natural resource management, and rural infrastructure, with key works including check dams, farm ponds, and irrigation facilities. Government initiatives in water conservation have contributed to a 35% reduction in water-stressed rural blocks over the past decade.
Additionally, Mission Amrit Sarovar has led to the creation of over 68,000 water bodies in its first phase, with Phase II now underway, emphasising community participation and improved water availability.
