“Over 2,000 women in Nagapattinam demand MGNREGA jobs, highlighting the scheme’s critical role in Madhya Pradesh. CM Mohan Yadav praises its impact on empowering farmers and laborers, with Rs 1,500 crore in wages paid in 2025–26. Despite funding caps and irregularities, MGNREGA drives rural prosperity, tourism, and infrastructure, though job-skill mismatches persist.”
MP Villages Embrace MGNREGA for Economic Uplift
In Madhya Pradesh, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) continues to be a cornerstone for rural employment, offering a lifeline to millions. Chief Minister Mohan Yadav recently emphasized its role in empowering the poor, farmers, and laborers, stating that the scheme not only provides local jobs but also enhances irrigation facilities. In 2025–26, approximately Rs 1,500 crore has been disbursed as wages to workers in the state, reinforcing MGNREGA’s impact on rural economies.
The scheme guarantees 100 days of wage employment annually to rural households, focusing on unskilled manual work like building roads, digging wells, and other infrastructure projects. In Nagapattinam’s Prathabaramapuram village, over 2,000 women recently sent registered post applications demanding MGNREGA jobs, underscoring the scheme’s demand-driven nature. As per the Act, registered workers are entitled to employment within 15 days, or they must receive compensation.
However, challenges persist. The Union government has capped MGNREGA spending at 60% of its annual allocation for the first half of 2025–26, a first for the demand-driven program. This cap, coupled with Rs 21,000 crore in pending liabilities from the previous year, raises concerns about job creation. In Tamil Nadu, the labor budget was slashed to 12 crore person-days for 2025–26, against a proposed 35 crore, highlighting funding constraints.
Despite these hurdles, MGNREGA’s role in Madhya Pradesh is expanding beyond employment. The scheme supports rural tourism, with CM Yadav launching 241 homestays across 121 villages to promote local jobs and cultural heritage. Tourist visits in 2024 surged by 526% compared to 2020, with homestays offering authentic rural experiences. The state aims to establish 1,000 homestays, creating sustainable employment.
Yet, a broader issue looms: job-skill mismatches. A recent report revealed that only 8.25% of Indian graduates hold jobs matching their qualifications, with over 50% in lower-skilled roles like clerks or machine operators. In rural areas, 88% of the workforce is engaged in low-skill jobs, despite rising education levels. This gap underscores the need for skill development to align with MGNREGA’s opportunities.
Fraud remains a concern. In Gujarat, a Congress leader and his son were arrested for allegedly siphoning off Rs 7.3 crore in MGNREGA funds through forged documents. Such irregularities threaten the scheme’s credibility, though Madhya Pradesh has reported no such major scandals recently.
Nationally, demand for MGNREGA work is rising, with 27.18 million households seeking employment in May 2025. However, actual job creation has declined, with person-days dropping from 289 crore in 2023–24 to 268 crore in 2024–25. This trend, coupled with stagnant budget allocations, signals economic strain in rural India, where MGNREGA remains a critical safety net.
Madhya Pradesh’s rural economy is also diversifying. A report highlights that 112 rural districts nationwide, including several in MP, have crossed a $2,000 per capita income threshold, driven by the services sector. This economic transformation positions villages as key contributors to India’s consumption engine, with MGNREGA playing a pivotal role.
Disclaimer: This article is based on recent news reports and publicly available data from sources like The Hindu, Times of India, and The Indian Express. Information is accurate as of July 4, 2025, and subject to change as new developments emerge.