Panel flags fund freeze impact on rural Bengal

New Delhi

The Parliamentary Standing Committee on Rural Development has raised serious concerns over the suspension of Central funds to West Bengal under MGNREGS and other rural schemes, stating that it has led to severe distress migration and halted development works in villages.

No Funds Since 2022

In its report on grants for the Rural Development Ministry, tabled in Parliament on Wednesday, the panel, headed by Congress MP Saptagiri Sankar Ulaka, highlighted that no Central funds have been released to West Bengal for three consecutive financial years — 2022-23, 2023-24, and 2024-25 under MGNREGS and other schemes.

The committee noted that the fund freeze has worsened economic hardships for rural families, affecting their livelihoods. It recommended that pending payments be released immediately, except for funds currently under court dispute, to resume development works and employment generation in villages.

Concerns Over Stagnant MGNREGS Budget

The panel expressed worry over the unchanged budget of ₹86,000 crore for MGNREGS since 2023-24, despite growing demand for jobs. It urged the ministry to reassess the ground reality and push for higher allocation to meet employment needs.

The report also pointed out that only ₹1.13 lakh crore out of ₹1.73 lakh crore allocated for 2024-25 was spent — a 34.82% shortfall. It flagged unspent funds under key schemes like PM Awas Yojana-Gramin, PM Gram Sadak Yojana, NSAP, NRLM, and MGNREGS, urging the ministry to adopt better fund utilization strategies.