The Finance Ministry has opposed suggestions from a government-appointed committee, led by Amarjeet Sinha, to overhaul the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) by increasing spending on the job scheme. Instead, the ministry leans towards directing funds towards infrastructure development.
The committee proposed connecting employment creation with asset formation and increasing budget allocations, which is met with resistance. While the allocation for MGNREGA was reduced to ₹60,000 crore this fiscal year, capital expenditure targets rose to ₹10 lakh crore. The Finance Ministry will assess the need for additional MGNREGA funds later in the year, considering demand. Plugging leaks in the scheme and increasing state participation are also highlighted as important aspects.