The rural sector of the Indian economy is facing multiple challenges because of the Covid-19 pandemic and the economic crisis that followed. The biggest challenge for the rural economy is large-scale job losses in urban centres of India that led to an exodus of migrants to their homes in rural areas across the country. Though some of these migrants returned to the cities to join their jobs, a large number of them are still in villages looking for a livelihood.

The MNREGA programme assumes considerable importance these days. The Budget 2021 has effected a huge cut in the allocation for MNREGA from Rs 1,11,500 crore last year (revised estimates) to Rs 73,000 crore this fiscal.

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