The government is unlikely to allot additional funds for MGNREGA for the remaining fiscal, as an above-normal monsoon has kept the demand for work under the rural employment programme low since July, officials told Moneycontrol. The allocation, however, will likely be higher next year.

A sum of Rs 86,000 crore was earmarked for the Mahatma Gandhi National Rural Employment Guarantee Act scheme in the budget for FY26 and the Centre is unlikely to spend more.

For FY27, however, the government may allocate more than Rs 90,000 crore for MGNREGA, the highest-ever budget estimate (BE), the officials said.

"This is based on an early analysis of the work being demanded under MGNREGS. Household construction (under Pradhan Mantri Awas Yojana-Gramin) and building projects for water conservation and

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