According to the financial statement of the “Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme”, it is running out of funds in 21 states.
The scheme has run out of funds halfway in the financial year 2021.
Supplementary budgetary allocations will not be provided to compensate till the next Parliamentary session starts.
Shortage of funds means that payments for MGNREGA workers and material costs will be delayed unless States use their own funds.