Andhra Pradesh MP highlights state’s revenue deficit, says hurdle to funding MGNREGA replacement

Speaking in the Lok Sabha, Devarayalu said that while the proposed changes are timely and necessary, Andhra Pradesh’s revenue deficit poses difficulties in contributing the mandatory state share.

“The economic challenges faced by Andhra Pradesh, particularly the continued revenue deficit since 2014 following bifurcation, also need to be factored into the implementation of these reforms. The financial situation of the state has been explained on multiple occasions, highlighting the structural constraints faced by Andhra Pradesh. Over the last one and a half years, a significant achievement has been the revival of 92 centrally sponsored schemes that were defunct between 2019 and 2024,” he said.

With the support of the Union government, these schemes are now performing well in the state.
“The request is for continued and enhanced central support, similar to what has been extended over the last one and a half years, to ensure effective implementation of schemes in the state,” he stated.

Backing the VB-G Ram G scheme, the MP said that change is the only constant in governance and public policy. While MGNREGA played a critical role during periods of distress, he said it now requires restructuring, better targeting and reform to remain effective.

“The changes being introduced reflect evolving aspirations of the people, shifts in the economy, and developmental progress witnessed over the last 15 years. Every decade has had its own defining focus: the 1960s on nation-building, the 1970s on ‘Garibi Hatao’, the 1980s on ‘Roti Kapda Makaan’, the 1990s on liberalisation, the 2000s on the right to work, the 2010s on ‘Sabka Saath Sabka Vikas’, and the 2020s on ‘Atmanirbhar Bharat’,” Devarayalu said, adding that the current proposal is another necessary iteration in 2025 reflecting new economic realities and implementation experiences.

He said members across parties have consistently raised concerns about proliferation, inefficiencies and the limited impact of the existing scheme at the constituency level. A Parliamentary Committee on MGNREGA in 2024, he said, had recommended reviewing the guaranteed days of work and examining the need to increase them from 100 to 150 days.

“Experienced legislators have questioned the sustainability of repetitive works and highlighted the need to rethink the nature and scope of employment being generated. Ground-level feedback from villages and field officers has indicated implementation gaps and misuse in certain regions. Investigations and financial monitoring by the Union Government have revealed instances of non-existent works and wage payments without corresponding work in several districts and states,” he said.

He went on to say: “Based on recommendations, feedback, and monitoring outcomes, the government has proposed increasing guaranteed employment from 100 to 125 days. Budgetary allocation has increased substantially from Rs 5,400 crore at the inception of the scheme to nearly Rs 86,000 crore in recent years, with exceptional enhancement during the COVID period. The proposed changes are therefore timely and necessary”.

Reiterating that Andhra Pradesh’s post-bifurcation revenue deficit must be factored into implementation, Devarayalu proposed five key suggestions to improve the scheme.

Calling for stronger legal provisions to prevent fraud, he said, “In Andhra Pradesh alone, over the last 10 years, 11,932 cases of fraud involving Rs 82 crore have been detected, of which only Rs 48 crore has been recovered.” Recovery alone, he said, was insufficient, and accountability and punitive action were needed. “The law should be amended to clearly deter profligacy and ensure those committing fraud are taken to task,” he said.

Second, he called for increasing the number of technical assistants, noting that one assistant currently handles four gram panchayats and around 16 worksites, creating scope for incorrect measurement and fraudulent reporting. He sought deployment of one assistant for every two gram panchayats.

Third, he said wage indexation needed reform to ensure proper and timely linkage so that real wages are protected against inflation.

Fourth, while welcoming the shift towards durable asset creation, he cited survey data showing individual asset creation rising from 9.6% in 2014 to 73.3% in 2024, and urged prioritising community assets.

Fifth, he called for strengthening social audits, noting that independent social audit units are not statutorily mandated and many states lack them.

Mandating social audits in every state and establishing independent audit units, he said, “These five suggestions are submitted for the Ministry’s consideration. Support is extended to the Bill.”