In Himachal Pradesh, the ongoing tussle between the state government and the central government over the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) funding has reached a boiling point. On April 28, 2025, BJP state media in-charge Karna Nanda held a press conference in Mandi, where he accused the Congress-led state government of misleading the public regarding the status of MNREGA funds. He claimed that the current government is responsible for the halt in MNREGA projects, stating, "If MNREGA work is stalled in Himachal Pradesh, the only one to blame is the current Sukhu Congress government."
Nanda pointed out that Congress ministers have been dishonest about the funds allocated for MNREGA, questioning why the state treasury did not receive 25 crores from the central government on several key dates: December 11, 2024, January 7, 2025, February 27, 2025, and March 25, 2025. He emphasized that during the financial years 2024 and 2025, the state was due to receive a total of 414 crores under MNREGA, which has not been delivered.
According to Nanda, the financial structure of MNREGA dictates that the central government covers 75% of the costs while the state government is responsible for the remaining 25%. He stated, "Himachal Pradesh owes 123.24 crores to the central government under the MNREGA scheme, which has delayed the installments meant for the state." The breakdown of this debt includes 95.41 crores for wages, 25.22 crores for materials, and 2.60 crores for administrative expenses. Nanda insisted that once the state government clears its dues, the funds for MNREGA will flow into the state treasury.
Further complicating the issue, on April 29, 2025, Nanda reiterated his accusations, claiming that the state government is attempting to create a negative narrative ahead of the upcoming Panchayat elections. He argued that while the central government continues to send funds, the state fails to deposit its share. Nanda pointed out that the state receives over 11 thousand crores annually from the center but continues to assert that no funds are forthcoming.
He highlighted that the central government had allocated 414 crores for MNREGA for the fiscal year 2024-25. However, he noted that the state government's failure to deposit its share has led to significant delays in project funding. Nanda remarked, "If the state government deposits its share, the pending funds will be released immediately, allowing MNREGA projects to resume."
Meanwhile, Rural Development and Panchayati Raj Minister Anirudh Singh has also weighed in on the matter, claiming that the central government has withheld approximately 461 crores in MNREGA grants. Singh stated that this withholding has severely impacted wage payments for laborers, procurement of construction materials, and salaries for MNREGA employees. He revealed that MNREGA laborers have not received wages for the past four months and that employees have been unpaid for three months.
Singh's comments reflect a deepening crisis in the state's rural employment program, with 461.56 crores pending since November 2024. He criticized the central government for budget cuts despite Himachal Pradesh's strong performance in the MNREGA program. The minister noted that approximately 250 crores are pending for labor costs, 200 crores for materials, and 11 crores for administrative expenses.
As of now, 7.16 lakh households and 10.26 lakh individuals are registered under MNREGA in Himachal Pradesh. In the past five years, the state has consistently created an average of 350 lakh man-days annually. However, for the financial year 2025-26, the state proposed 417 lakh man-days to the central government, only to see this number slashed to 250 lakh by the center. This reduction has drawn criticism from state officials, who argue that it does not take into account the geographical challenges faced by Himachal Pradesh.
Local leaders, including Shivraj Thakur, president of the Gram Rojgar Sewak Sangh, have expressed their frustration over the lack of funding. Thakur noted that the absence of MNREGA grants has made it increasingly difficult for employees to manage their families' expenses. He pointed out that 1,031 Gram Rojgar Sewaks, 400 technical assistants, 100 computer operators, and 24 junior accountants are currently providing services under MNREGA, all of whom depend on the timely release of administrative funds for their salaries.
As the situation continues to unfold, it remains to be seen how both the state and central governments will address the funding crisis affecting MNREGA. With the Panchayat elections approaching, the stakes are high, and both parties appear to be preparing for a contentious battle over accountability and funding.
In summary, the ongoing dispute over MNREGA funding in Himachal Pradesh highlights significant tensions between the state and central governments. As accusations fly and financial obligations remain unmet, the impact on local employment and infrastructure projects is becoming increasingly evident. The need for resolution is urgent, especially as the state prepares for upcoming elections.
