Rural Employment Funds Plunge Sharply; Kerala’s Share at 527 Crores

New Delhi: Even as inflation rises, rural employment funds have plummeted, according to central government data. Across the states, over 9,200 crores remain pending, including 527 crores for Kerala.

MP V Shivadasan said that the alarming decline in the allocation under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), along with weak implementation of the scheme, is a cause for concern. The reply by Rural Development Minister Kamlesh Paswan reveals that despite rising inflation and rural distress, the employment allocation has significantly reduced in recent years.

Government data shows that over the past five years, the final release of employment funds has sharply declined. The final release for 2020–21 was 1,11,171 crores. This fell to 98,468 crores in 2021–22, 90,810 crores in 2022–23, 89,268 crores in 2023–24, and 85,839 crores in 2024–25—a reduction of about 25,000 crores since 2020–21. At a time when fuel prices, food prices, and essential living costs are rising nationwide, this decline in employment allocation is adversely affecting the living standards of rural families.

During the same period, the number of families seeking work under MGNREGA has also declined every year. In 2020–21, 85.392 million families sought work. This decreased to 80.513 million in 2021–22, 69.034 million in 2022–23, 65.161 million in 2023–24, and 63.266 million in 2024–25. The shortfall of over 22 million families indicates that the lack of funds, delays in wage distribution, and reduced work offered at the village level have limited the scheme.

In addition to the reduced allocation, states have over 9,200 crores in pending payments. As of December 5, 2025, the material component stood at 7,863.37 crores, and the wage component at 1,340.07 crores, totaling 9,203.44 crores. Delays in releasing funds directly affect the lakhs of workers waiting for wages.

Kerala, too, has a significant amount pending from the Centre. The state is to receive 187.82 crores in materials and 339.87 crores in wages, totaling 527.69 crores. These delays hinder timely wage distribution to workers and slow the progress of MGNREGA projects.

MP V Shivadasan emphasised that for rural families, the employment scheme is a lifeline, and weakening it during a period of high inflation and unemployment affects tens of millions of people. He said that the sharp decline in allocations and the pending dues are effectively sabotaging the programme, and urged the central government to increase the employment allocation and clear the pending funds.