New Delhi:The allocation towards Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), the flagship rural job programme, is set for a minimum 30 per cent hike in the Union Budget for 2019-20.
Proposed in the wake of rising unemployment in the country, more funds for the scheme would bolster rural consumption which is key to economic growth.
The annual MGNREGS allocation would reach Rs 78,000-Rs 80,000 crore, if the Budget goes for the proposed 30 per cent hike.
“There is urgent need to boost consumption. A higher allocation for MGNREGS would provide employment to more people in the rural areas,” said an official.
Last week, Labour Ministry data confirmed jobless growth in the country with unemployment rate touching 45-year high of 6.1 per cent in FY18.
The economic growth has also decelerated to 5-year low of 6.8% in the last fiscal and also abysmally low of 17-quarters to 5.8% in January-March period on poor consumption and demand.
With most macro indicators showing deceleration in the economy the Modi government has its task cut out. In its very first Cabinet meeting last week, it extended the coverage of PM KISAN scheme irrespective of land-holdings of farmers.
Now, 14.5 crore farmers would be covered in the scheme and get Rs 6,000 annually in equal instalments. (IANS)
Also Read: BUSINESS