Over ₹193 crore misappropriated under MGNREGA in FY 2024-25: Centre
What's the story
The Indian government suspended funds under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for West Bengal since March 2022, over alleged misappropriation of funds. However, data from the Union Ministry of Rural Development shows that most states have reported misappropriation of funds from this federal scheme. Nevertheless, funds have not been restricted in the last three fiscal years for any state or union territory, unlike West Bengal.
Recovery efforts
Only 10.58% of misappropriation cases have been resolved
According to the ministry's action taken report (ATR) on social audits, a statutory provision under MGNREGA, ₹193.67 crore was misappropriated across states in FY 2024-25 as of March 29 this year. Of that, only ₹10.29 crore or 5.32% has been recovered till now. ATR also showed that only 10.58% or 15,854 out of a total of 149,000 cases of fund misappropriation have been resolved to date.
State-wise impact
Andhra Pradesh, Karnataka among states with fund misappropriation
Andhra Pradesh, which received ₹7,558.95 crore in central funds under MGNREGA for FY 2024-25, reported misappropriation of ₹45.57 crore; only ₹79.45 lakh (1.74%) has been recovered till now. Karnataka, which received ₹5,557.32 crore, misappropriated ₹41.58 crore and recovered just ₹3.38 crore (8.14%). Misappropriation in Bihar was ₹2.66 crore. The recovery was just over six lakh rupees, or 2.29% of the total amount misappropriated, for the allocation of over ₹6,700 crore for the scheme in FY 2024-25 alone.
Government response
Centre's stance on West Bengal fund suspension
Almost all states reported misappropriation of MGNREGA money this year, with the exception of Arunachal Pradesh, Goa, the Union territories of Ladakh, Andaman and Nicobar, Dadra and Nagar Haveli, Daman and Diu, and Puducherry. The Centre hasn't released funds to West Bengal since March 9, 2022, alleging the state hadn't complied with its directives. In FY 2021-22 alone, West Bengal received ₹7,507.80 crore in central funds under MGNREGA.
Historical data
Fund misappropriation data for previous fiscal years
In FY 2023-24, the total fund misappropriation across India reached ₹169.75 crore with a slightly improved recovery rate of 12.33% or ₹20.93 crore, according to social audit data till March 29. Over one-third (about 33%) of misappropriation cases were closed, making the number significantly higher than earlier. Similarly, data from FY 2022-23 showed total funds misappropriated at around ₹160 crore and recoveries at roughly ₹28 crore, marking the highest recovery rate in the last three fiscal years.