Karnataka demands immediate disbursal of MGNREGS funds

Karnataka has sought the immediate release of Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) funds that are due to it.

State Rural Development and Panchayat Raj Minister Priyank Kharge has written to Union Minister Shivraj Singh Chouhan, seeking the immediate release of pending funds under the MGNREGS.

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Expressing serious concern over delays in releasing wage, material, and administrative components of the scheme for the Financial Year 2025-26, the Karnataka minister said, Karnataka had complied with all procedural requirements, including submission of Utilization Certificates and necessary documentation to the Ministry of Rural Development. He added that non-disbursal of funds has created a severe financial and administrative bottleneck for the state.

“Salaries for field-level staff and functionaries have remained unpaid since December 2024, leading to significant financial hardship for personnel. This delay is severely affecting the routine operations, supervision, and on-ground implementation of the scheme. Field functionaries have been submitting multiple requests to the Headquarters for the immediate release of their pending salaries to cover essential expenses such as their children’s school admission fees, rent, and loan EMIs, etc,” the Karnataka minister said.

Kharge said that there are issues arising from technical transitions mandated by the Centre, such as the migration to the Single Nodal Agency (SNA) system and integration with platforms like SPARSH and NREGASoft.

The minister said, that though these changes aimed at streamlining the system, they have instead led to operational delays in fund disbursement. Material bills amounting to Rs 787.2 crore are currently pending, while wage liabilities have piled up to around Rs 600 crore, despite being raised based on actual work progress.

“Timely disbursement is essential not just for the livelihood security of lakhs of rural workers, but also to uphold the credibility and effectiveness of this national programme,” Kharge said seeking the central government’s urgent intervention.