Key Points
In a curious case of one flagship scheme sharing the cost of another, the rural development ministry has told the finance ministry that the elevated wage costs under the Mahatma Gandhi Rural Employment Guarantee Scheme (MGNREGS) are also driven by another rural programme, Pradhan Mantri Awas Yojana (Gramin), a person aware of the details said.. Wage costs of about 10,000 crore under the MGNREGS, or one sixth of the scheme's FY24 budgeted outlay of 60,000 crore, are estimated to go into the construction of rural houses under PMAY, he told ET...
The government allows 90-95 days of wage assistance for construction under the PMAY (Gramin) from the MGNREGS outlay, over and above the unit cost provided to the beneficiaries under the housing scheme...
MGNREGS wages of about 35,000-40,000 crore are estimated to have gone into the construction of houses under the PMAY (Gramin) since the scheme was rolled out in November 2016 by revamping the erstwhile India Awas Yojana, said the person..
However, the wage bill is expected to ease next fiscal, unless in the unlikely scenario of a rural distress, as the deadline for the "housing for all'" initiative under the PMAY (Gramin) is expiring in December 2023, he said.. "There will be less outgo from the MGNREGS budget for house construction next fiscal," said the person quoted above...
As for the PMAY (Gramin), the government has allocated a record 54,487 crore for the scheme, up 12.5% from the revised estimate of FY23, to ensure the construction of rural houses gets over before the deadline...
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