Maharashtra's rural job bill may raise state outlay six-fold to Rs 6,000 crore

Mumbai, Dec 17 (PTI) Maharashtra's expenditure on rural employment works is likely to jump six-fold to about Rs 6,000 crore in the first full year after Parliament passes the proposed national rural job guarantee law, officials here said.

The outlay is expected to rise from about Rs 900 crore at present once the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) or VB-G RAMG Bill, 2025, comes into force, they said.

Officials said the new law could strain state finances as some populist schemes have already added to the spending. They cited announcements such as the Mukhyamantri Majhi Ladki Bahin Yojana as adding an annual burden to the exchequer.

"As per the present contents of the bill, the total estimated requirement is Rs 1,51,282 crore. Maharashtra expects to get about 10 per cent of this, or around Rs 15,000 crore. With a 40 per cent share to be borne by the state, we will have to spend at least Rs 6,000 crore to utilise the remaining 60 per cent," an official said.

"This would mean over a 500 per cent jump in the state's spending on MGNREGA, which is expected to be around Rs 900 crore in the current financial year," the official added.

The official said the proposed increase in guaranteed workdays from 100 to 125 and the inclusion of works such as road and bridge construction could benefit the state.

"There are road construction schemes under the Rural Development department where the state pays 100 per cent. If these works come under the new law, it could reduce the state's burden," he said.

Chief Minister Devendra Fadnavis during the recently-concluded state legislature session had said the financial resources are limited, but maintained that Maharashtra remains economically strong.

"We do not have an overflowing treasury. But among the country's large states, Maharashtra even today qualifies on all parameters of a stable and strong economy," Fadnavis said while replying to debates in the legislative assembly last week.

Data from the state Employment Guarantee Scheme department show a steady rise in total spending under MGNREGA over the past five years.

Total expenditure stood at Rs 2,020.96 crore in 2020-21 and rose to Rs 2,422.75 crore in 2021-22, Rs 3,024.23 crore in 2022-23, Rs 4,460.83 crore in 2023-24 and Rs 5,972.23 crore in 2024-25.

"We expect total expenditure in the ongoing fiscal to reach Rs 9,000 crore," said a senior official overseeing MGNREGA implementation in the state. Spending has already reached Rs 5,207.08 crore in the current fiscal.

Under the proposed bill, the Centre will bear 60 per cent of the wage cost, while the state will have to manage the remaining 40 per cent. At present, the Centre bears the full wage cost, while material costs are shared in a 75:25 ratio between the Centre and states.

Over the last five years, the state's own spending remained relatively low at Rs 200 crore in 2020-21, Rs 240 crore in 2021-22, Rs 300 crore in 2022-23, Rs 446 crore in 2023-24 and Rs 597 crore in 2024-25.

Given the targeted total expenditure of Rs 9,000 crore in the current fiscal, the state's share is estimated to be under Rs 1,000 crore, officials said. PTI ND NP