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Centre Releases Rs 17,744 Crore in First MGNREGA Wage Instalment for FY27

The Centre has released over Rs 17,744 crore as the first instalment towards wage payments under MGNREGA for 2026-27 via DBT. The government is transitioning to the VB-GRAMIN initiative, which promises 125 days of employment and higher wages. Over the last decade, the government has released more than Rs 7.81 lakh crore under MGNREGA, creating 8.07 crore rural assets. Water conservation efforts under the scheme have reduced water-stressed rural blocks by 35% over the last decade.

Key Points: Rs 17,744 Crore Released as MGNREGA Wage Payment for FY27

  • Centre releases Rs 17,744 crore as first MGNREGA wage instalment for FY27
  • Rs 30,000 crore allocated to clear dues before transition to VB-GRAMIN scheme
  • VB-GRAMIN promises 125 days of employment with higher wages and legal safeguards
  • Over Rs 7.81 lakh crore released under MGNREGA from 2014-15 to 2024-25, creating 8.07 crore rural assets
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Centre releases over Rs 17,744 crore as wage payments under MGNREGA

Centre releases over Rs 17,744 crore as first wage instalment under MGNREGA for 2026-27 via DBT. Government transitions to VB-GRAMIN scheme with 125 days of employment.

"Viksit Bharat - G RAM G is an upgrade of MGNREGA, and the scheme balances the interests of both farmers and labourers. - senior official"

New Delhi, May 3

The Centre has released over Rs 17,744 crore as the first instalment towards the wage component for workers through direct benefit transfer under the Mahatma Gandhi National Rural Employment Guarantee Act for 2026-27, a senior official confirmed.

For FY27, Rs 30,000 crore has been allocated to MGNREGA to clear pending dues before shifting to the upcoming VB-GRAMIN initiative, which has a budget of Rs 95,692 crore.

By March 11, 2026, over Rs 81,500 crore was released for the financial year 2025-26, including Rs 65,875 crore for wages and Rs 15,627 crore for material and administration costs.

While employment saw a monthly dip in early FY27, as many as 43 crore person-days were approved for May 2026, which is higher than 30 crore person-days for April. Funds are directly credited to worker accounts via Direct Benefit Transfer (DBT), ensuring transparency.

The government is transitioning to the VB-GRAMIN initiative, which promises 125 days of employment and higher wages.

A senior official said that Viksit Bharat - G RAM G is an "upgrade of MGNREGA", and the scheme balances the interests of both farmers and labourers by providing a statutory guarantee of 125 days of employment instead of 100 days, along with better wages, unemployment allowance and legal safeguards such as payment of interest in case of delays.

The Central Government has made the largest-ever budgetary provision of Rs 95,692 crore for the Viksit Bharat - G RAM G scheme, representing the Centre's share alone, he added.

The Central Government has released more than Rs 7.81 lakh crore over the 10 years from 2014-15 to 2024-25, under MNREGA, which has resulted in the creation of 8.07 crore rural assets. This represents a sharp increase from the allocation of Rs 2.13 lakh crore in the previous decade (2006-07 to 2013-14), which resulted in the creation of 1.53 crore rural assets, according to an official factsheet.

The number of person-days of employment created under the scheme has gone up by 82 per cent to 3,029 crores. The annual allocation for the scheme jumped from Rs 1,660 crore in 2013-14 to Rs 86,000 crore in the Budget for 2025-26.

The work taken up under MNREGA is related to agriculture and allied activities, natural resource management and rural infrastructure.

Various water-related works such as check dams, farm ponds, community ponds and irrigation open wells are taken up under the scheme. The Government's continued thrust on water conservation has yielded remarkable results, with a 35 per cent reduction in the number of water-stressed rural blocks from 2,264 to 1,456 in the last decade, the statement said.

Another major success is in the form of Mission Amrit Sarovar, which has led to the creation of over 68,000 Amrit Sarovars in the country in Phase I. Currently, Phase II of Mission Amrit Sarovar has been rolled out with a renewed focus on water availability with community participation, Jan Bhagidari, at its core.

- IANS

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Reader Comments

N
Naveen S
125 days guarantee sounds good on paper, but will the wages actually keep up with inflation? Over 7.81 lakh crore spent in 10 years—that's huge, but I've seen many workers in Andhra complain about delayed payments. The DBT system is transparent, but if funds don't reach on time, interest on delays is just a paper promise. Need better implementation at block level.
R
Ramesh W
As a farmer in Tamil Nadu, I appreciate the focus on water conservation—those Amrit Sarovars have actually revived groundwater in my village. The 35% reduction in water-stressed blocks is credible because I've seen it firsthand. MGNREGA works like farm ponds benefit both labourers and us farmers. Just hope the VB-GRAMIN launch doesn't disrupt ongoing projects. Well done, Centre! 👏
K
Kavya N
My concern is the drop in employment in early FY27—only 30 crore person-days in April vs 43 crore approved for May. That's a 43% dip! Rural women in my district rely on this scheme for economic independence. The new scheme promises higher wages, but will they be enough compared to urban jobs? Also, why shift to a new scheme when MGNREGA was finally streamlined? Change for change's sake?
A
Alexander G
Impressive numbers—8.07 crore rural assets created since 2014! I work with an NGO in Uttar Pradesh and have seen how check dams and irrigation wells have improved agricultural yields. The DBT system is a game-changer for accountability. But with a Rs 95,692 crore budget for VB-GRAMIN, I hope states don't misuse funds like in the past. Transparency is key for rural development.

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