India Allocates ₹17,744 Crore for MGNREGA Wages in FY27 Amid Transition to New Employment Scheme
Centre releases ₹17,744 crore as first wage instalment for MGNREGA in FY27
Business Standard
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The Indian government has released ₹17,744 crore as the first wage instalment for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for the fiscal year 2026-27. This funding aims to ensure timely wage payments while transitioning to the new Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (VB-GRAMIN).
- 01₹17,744 crore allocated for MGNREGA wages for FY27.
- 02Transitioning to the new VB-GRAMIN scheme.
- 03MGNREGA employment fluctuates based on demand.
- 0430 crore person-days earmarked for April 2026.
- 05₹95,692 crore allocated for VB-GRAMIN in the FY27 budget.
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The Indian Union government has released ₹17,744.19 crore as the first instalment for wages under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for the fiscal year 2026-27. This funding is aimed at ensuring timely wage payments while the government prepares to transition to the new Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (VB-GRAMIN). Alongside the wage component, a sanction of ₹3,478 crore has been issued for material and administrative components across various states and Union Territories (UTs). Officials noted a 35.3% decline in monthly MGNREGA employment, attributing this to seasonal factors and local livelihood opportunities. To address this, the government has earmarked 30 crore person-days for April 2026 and plans to ramp up employment provisions to over 43 crore person-days in May 2026. The Centre has assured that MGNREGA will continue to operate until the full rollout of the VB-GRAMIN initiative, which has received a budget allocation of ₹95,692 crore for FY27, along with ₹30,000 crore to settle pending dues for MGNREGA during the transition.
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This funding will provide essential wage support to rural households, helping to stabilize their income during the transition to the new employment scheme.
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