The Central government owes West Bengal ₹3,038 crore under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the highest among all states, due to a funding freeze since March 9, 2022, Minister of State for Rural Development Kamlesh Paswan informed the Rajya Sabha on Friday. The stoppage, invoked under Section 27 of MGNREGA, 2005, for alleged non-compliance with Central directives, covers pending liabilities for wages, materials, and administrative costs, sparking sharp criticism from the Trinamool Congress (TMC) and opposition parties.
In a written reply to TMC MP Prakash Chik Barik, Paswan detailed that West Bengal’s dues far exceed those of other states, with Andhra Pradesh owed ₹1,684.39 crore, Bihar ₹893.57 crore, Uttar Pradesh ₹694.76 crore, and Telangana ₹456.31 crore in wage liabilities. Unlike other states, where no prior-year wage dues remain, West Bengal’s funds have been withheld for over three years, a move TMC alleges is politically motivated to weaken the state’s rural economy. Paswan noted that ₹47,567 crore has been released nationwide in 2025-26 (as of July 28), including ₹39,595 crore for wages, but West Bengal remains excluded.
The issue gained traction last week when TMC MP Derek O’Brien flagged a “mismatch” in MGNREGA data, noting that while registered households rose from 14.81 crore in 2023-24 to 15.99 crore in 2024-25, employment days dropped from 52.08 to 50.23 per household, and total workers fell from 8.34 crore to 7.88 crore. TMC’s X post accused the Centre of deliberately omitting West Bengal from liability lists, stating, “You withhold our funds, arrest our people, and now wipe Bengal off your records?” The party claims the freeze, affecting 256.32 lakh registered MGNREGA workers in the state, has fueled distress migration.
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The Parliamentary Standing Committee on Rural Development’s March 2025 report warned that the fund suspension has caused “severe consequences,” disrupting rural development and exacerbating poverty in West Bengal. Congress leader Sonia Gandhi, in a March 18 Rajya Sabha speech, criticized the BJP government for undermining MGNREGA, demanding a ₹400 daily wage and 150 guaranteed workdays. Activists like Nikhil Dey have highlighted that the 2025-26 budget’s stagnant ₹86,000 crore allocation fails to address ₹13,718.65 crore in nationwide liabilities, with West Bengal’s share previously estimated at ₹7,500 crore.
TMC MPs, joined by Congress, have accused the Centre of targeting opposition-ruled states, pointing to similar delays in Andhra Pradesh and Karnataka. The ongoing impasse, coupled with allegations of voter roll manipulation raised by Congress in Parliament, has intensified the political row, with West Bengal CM Mamata Banerjee vowing to fight for the state’s dues. As rural distress mounts, the Centre’s stance risks escalating tensions ahead of the 2026 elections.
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