While many criticize MGNREGA as a ditch-digging, manual labour, low-skilled programme, its utility is not limited to that. It also includes various activities, including building roads, constructing water bodies, and other rural infrastructure projects. These activities can have important spillover effects on the local economy, creating demand for other services and stimulating growth in other sectors. Hence, it is only natural for concerns to arise when India cuts down expenditure on this front: from Rs 730 billion (Rs 73,000 crore) in FY23 to Rs 600 billion (Rs 60,000 crore) in FY24, so much so that it has reached a six-year low.
