Critically analyze the statement 'MGNREGA, the lynchpin of rural poverty alleviation, has become the victim of fiscal apathy' in the light of recent developments.

MGNREGA was launched in 2006 as a social security scheme to provide 100 days of employment to any household looking for work. It is a demand-driven scheme and hence, budget is allocated as per the demand of unemployed people seeking job under the scheme. The government has reduced the budget of MGNREGA from ₹10,000 in FY 2022-23 to ₹65,000 in FY 2023-24. Government's priorities are shifting away from NREGA or social sector. NREGA: A victim of fiscal apathy → Government's spending more by CAPEX

However, government does increase the budget of the scheme in the revised estimates if the demand for scheme increases. Initially, the budget allocation is kept low because NREGA spending is revenue expenditure and thus, high revenue expenditure inflates the fiscal deficit of the government. However, since India is a welfare state, the government is committed to providing NREGA support to unemployed people in rural areas to improve their standard of living.

— Ruhani · AIR 5