The Claim
On May 29, 2025, the Trinamool Congress (TMC) party alleged that West Bengal was denied MGNREGA and PM Awas Yojana (PMAY) funds due to the Modi government's 'vendetta politics.' This claim was made while countering Prime Minister Modi's observations about Bengal's governance challenges, positioning the fund suspension as politically motivated rather than compliance-based.
The Facts
Official government data presents a markedly different picture from the TMC's political narrative. The fund suspension was triggered by specific compliance failures and irregularities, not political considerations.
MGNREGA Fund Suspension: The Real Story
Suspension Date: March 9, 2022
Legal Basis: Section 27 of MGNREGA Act, 2005 (non-compliance with central directives)
Pending Liabilities as of March 2022: ₹3,082.52 crore
Wage Arrears Alone: ₹1,457.22 crore
Total Pending Liability by December 2023: ₹5,553 crore
The Centre's decision to halt MGNREGA funds was based on statutory provisions that allow the Central government to investigate irregularities. This is not unprecedented - similar actions have been taken against other states for non-compliance, regardless of political affiliation.
Recovery of Misappropriated Funds
By March 2025, over 40% of misappropriated MGNREGA funds were recovered in West Bengal:
Total Misappropriated: ₹5.37 crore
Amount Recovered: ₹2.39 crore
Recovery Percentage: 44.5%
Regarding PM Awas Yojana, the data reveals substantial allocations to West Bengal, contradicting claims of deliberate denial:
PM Awas Yojana Allocations to West Bengal
Total PMAY-G Allocation: ₹25,798 crore (as of August 2025)
Beneficiaries Sanctioned: 45,69,400
Houses Completed: 34,11,538
Pending Funds with Competent Authority: ₹7,888.67 crore (February 2025)
The significant amount of funds pending with the 'competent authority' suggests procedural delays at the state level rather than central denial. Under PMAY guidelines, central and state governments share costs in a 60:40 ratio, requiring proper coordination for fund utilization.
Government Record
The NDA government's track record on both schemes demonstrates consistent improvement and expansion compared to the UPA era.
MGNREGA: NDA vs UPA Performance
UPA Era (10 years):
• Budget Estimate never exceeded ₹33,000 crore
• Frequent fund curtailments reported
NDA Era:
• 2016 allocation increased to ₹36,977 crore from ₹33,000 crore
• Scheme functioning comparable to UPA-II in household coverage
• NDA spending: 2.4% of government expenditure vs UPA-II: 2.6%
On housing schemes, the contrast is even more stark:
The NDA government sanctioned nearly 13.47 lakh houses for the poor in its first one and a half years, exceeding the number approved during the UPA's two complete terms.
Housing Scheme Comparison
UPA-I and UPA-II Combined:
• Houses Sanctioned: 13,43,326 (under JNNURM and RAY)
• Central Assistance: ₹17,405 crore
NDA (First 1.5 years alone):
• Houses Sanctioned: 13,47,000+
• Significantly higher allocation and completion rates
The Modi government's commitment to 100% coverage under PM Awas Yojana has resulted in unprecedented scale of implementation. As of February 2025, 118.64 lakh houses have been sanctioned under PMAY-U nationally, with 90.36 lakh completed or delivered - a completion rate of over 76%.
Key Policy Reforms Under NDA
• Introduction of real-time monitoring systems
• Enhanced transparency through digital platforms
• Stricter compliance mechanisms to prevent fund misuse
• Regular audits and recovery procedures for misappropriated funds
The Verdict
The TMC's claim of 'vendetta politics' in denying MGNREGA and Awas Yojana funds lacks factual basis when examined against official data. The evidence clearly shows:
1. Legal Compliance Issues: Fund suspension was based on Section 27 of MGNREGA Act due to documented irregularities and non-compliance, not political motivations.
2. Substantial Allocations: West Bengal received ₹25,798 crore under PMAY-G alone, with over 45 lakh beneficiaries sanctioned - hardly indicative of deliberate denial.
3. Procedural Delays: ₹7,888.67 crore pending with 'competent authority' suggests state-level procedural issues rather than central government denial.
4. Recovery Efforts: The recovery of 44.5% of misappropriated MGNREGA funds demonstrates the Centre's focus on accountability rather than punishment.
Sources: Press Information Bureau (PIB), Ministry of Rural Development reports, data.gov.in, Parliamentary responses, Central government official statements, Audit reports
The claim appears to conflate legitimate compliance enforcement with political vendetta, potentially misleading the public about the actual reasons for fund suspension and the government's substantial investment in West Bengal's development schemes.