MGNREGA person-days cut in TN as central funds flow thin

CHENNAI: With limited funds allocated by the Union government for the demand-driven MGNREGA scheme, the Tamil Nadu government has drastically reduced the number of person-days generated for workers under the scheme this fiscal. This would hurt 88.11 lakh rural workers, particularly women and the elderly, who depend on this guaranteed job scheme for their livelihood.

So far, only 59.82 lakh person-days of work have been generated, compared to the projected 2.09 crore person-days for April and May this year. As the Department of Rural Development and Panchayat Raj projected 12 crore person-days for the fiscal, the shortfall accounted for a shortfall of 8 crore person-days against the projected target and 18 crore fewer than the number generated last fiscal.

Sources in the department attribute the situation to the Centre's decision to cut funding, compelling the state to reduce the person-days. They added that only around 15% of work has been provided to labourers over the past two months. As of now, the department has managed to provide an average of just 7.6 days of employment per household, with no household having completed the guaranteed 100 days of wage employment.

Usually, the department ramps up work allocation during the first six months of the fiscal. In 2024–2025, it achieved its projected 20 cr person-days within the first half of the year and ended up generating over 30 crore person-days. However, the Centre delayed releasing funds to cover wages for the final four months of that year, leaving the workers without wages for nearly five months. It finally sanctioned Rs 2,999.53 cr on April 19 for 2025-26.

From April 20 to May 19, the State received Rs 2,974.92 cr from the main sanction order, of which Rs 2,853 cr was allocated to clear pending wages. "Lion's share went towards clearing wage arrears," said a department source, adding that very little remains to fund new works in the coming months. "The TN government finds itself in a tight spot, as the Centre has clearly stated that Rs 2,999 cr is the total allocation for 2025-26. It is uncertain whether any additional funds will be provided in the revised budget. As a result, officials are hesitant to generate more person-days," the source noted.

A senior government official admitted that they generate less number of person-days as it is yet to receive around Rs 1,400 cr towards the material component of the scheme from the Centre. "It is unclear whether additional funds will be sanctioned if we exceed the permitted 12 crore person-days; hence, proceeding with caution," the official said.

7.6 days

Average person-days 88.11 lakh active workers are supposed to get

59.82 lakh

Person-days generated as against the projected 2.09 crore for April, May months

12 crore

Person-days granted by Centre for TN for 2025-26 fiscal; TN, however, generated over 30 crore person-days