New Delhi: The Central Government has cleared all admissible wage liabilities under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) up to FY 2024-25, except for the state of West Bengal, Union Rural Development Minister Shivraj Singh Chauhan informed Parliament. The update outlines fund releases, pending dues, and the current status of the flagship rural employment scheme for FY 2025-26.
Direct Benefit Transfer Ensures Timely Wage Payments
Minister Chauhan stated that MNREGS wage payments are credited directly to workers’ bank accounts via the Direct Benefit Transfer (DBT) system. Wage sanctions are issued daily through the Public Finance Management System (PFMS) once states submit fund transfer orders following the due procedure.
Any pending wage liabilities from previous financial years are reimbursed at the start of each new year, ensuring continuity and timely disbursement of benefits to rural workers.
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Fund Releases in FY 2025-26
As of 26 November 2025, the Centre has released a total of ₹68,393.67 crore to states and Union Territories. This includes:
- ₹57,853.62 crore for wages
- ₹10,540.05 crore for material and administrative costs
Wage sanctions are processed on a daily basis, meaning the fund release figures are continuously updated. For material and administrative components, states must submit formal proposals, with releases made in two tranches based on the approved labour budget, utilisation pace, pending liabilities, work demand, performance, and submission of required documents.
West Bengal: Pending Liabilities and Compliance Issues
West Bengal remains the only state not receiving MNREGS funds. The Centre stopped fund releases to the state on 9 March 2022 due to continued non-compliance with central directives under Section 27 of the MNREGS Act.
According to NREGA Soft data, as of 8 March 2022, West Bengal’s pending liabilities amounted to ₹3,082.52 crore, comprising:
- ₹1,457.22 crore in wages
- ₹1,607.68 crore in material dues
- ₹17.62 crore under the administrative head
The admissibility of these dues is under verification. The ministry informed Parliament that, following the Calcutta High Court’s order dated 18 June 2025, it is reworking modalities for resuming MNREGS implementation in West Bengal.
Demand-Driven Programme Ensures Efficiency and Transparency
MNREGS is a demand-driven scheme, meaning funds are allocated based on actual demand rather than pre-determined state-wise allocations. Data from FY 2021-22 to FY 2024-25 shows wide variations in allocations, with Rajasthan, Tamil Nadu, Uttar Pradesh, and Andhra Pradesh among the largest recipients.
Integration of PFMS, daily sanction systems, and compliance-based fund movements has strengthened transparency, accountability, and efficiency in the implementation of the programme, ensuring rural workers receive timely wages.
About MNREGS
The Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) is India’s flagship rural employment programme, providing guaranteed wage employment to rural households while promoting livelihood security. The scheme is administered by the Ministry of Rural Development and operates as a public sector initiative, ensuring transparency, accountability, and timely delivery of benefits to millions of rural workers across India.
