The central government plans to approve West Bengal’s labour budget for the Mahatma Gandhi National Rural Employment Guarantee Scheme after a four-year suspension. The pause began in 2022 when special powers under the MGNREGA Act were used to halt the programme. An announcement is expected following a meeting between West Bengal Chief Minister Suvendu Adhikari and Rural Development Minister Shivraj Singh Chouhan scheduled for Monday evening. The Centre may also allocate extra houses under the Pradhan Mantri Awaas Yojana (Gramin). The decision follows the change of government in the state. An Empowered Committee recently reviewed the labour budget proposal for June, with the state likely to receive Rs 300-400 crore. Formal approval remains pending. The budget covers only June because a new rural employment scheme under the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act will start on 1 July. It is unclear whether the approval will require compliance with special conditions set in December 2025. Funding to West Bengal was stopped in March 2022 over non-compliance with central directives. The Calcutta High Court later ordered resumption, but the Supreme Court upheld the Centre’s position. After the court ruling, the ministry issued an order allowing resumption subject to conditions. The previous state government did not submit a labour budget proposal. The new administration has now done so. Outstanding dues remain disputed, with state estimates reaching Rs 43,000 crore for MGNREGS and Rs 24,275 crore for PMAY-G, while central figures are lower at around Rs 5,596 crore for MGNREGS.
