Hyderabad: Telangana witnessed a sharp decline of 47.6 percent in the number of workdays generated under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) during the first six months (April–September) of the 2025–26 financial year, according to a new study by LibTech India.
The fall in workdays in Telangana is significantly higher than the national average decline of 10.4 percent, the report stated.
LibTech India, a Delhi-based research organisation, has been studying the implementation and impact of the rural employment scheme across states for several years and releases performance data every six months.
Major findings
The report revealed that the total number of families provided employment in Telangana during April–September 2024 stood at 25.33 lakh, which dropped to 19.94 lakh (a 21.3 percent fall) in the corresponding period of 2025. The average number of workdays per household declined from 41 to 27 this year.
Across social categories, a significant dip was seen: workdays for Scheduled Castes dropped by 48.3%, for Scheduled Tribes by 41.7%, and for other categories by 49.5%.
Steepest declines observed in Medchal, Gadwal
At the district level, the steepest declines were observed in Medchal (92.8%), Jogulamba Gadwal (72.6%), Kamareddy (68.7%), and Nizamabad (67.1%).
Although the central government increased the daily wage rate from ₹300 to ₹307 in 2025–26, the sharp reduction in workdays has effectively cut household earnings from the program.
Administrative and technical issues
The report attributed part of the decline to administrative and digital verification hurdles. Telangana has not undertaken the renewal of job cards in recent years. During the rollout of Aadhaar-based payments in 2022–23, over 5.1 lakh job cards were deleted and continue to remain inactive.
This year, the central government introduced the new e-KYC (electronic Know Your Customer) verification system. Of the state’s 53 lakh registered job card holders, only 48.5 percent have completed e-KYC verification, leaving 51.5 percent still pending—effectively cutting off access to wages for many workers.
LibTech India’s Recommendations
LibTech India urged both the central and state governments to take immediate corrective measures to halt the declining trend in rural employment. The study suggested restoring deleted job cards through a dedicated program and ensuring job allocation across districts based on demand.
It also called for special focus on districts with the steepest fall in workdays—particularly Medchal, Jogulamba Gadwal, Kamareddy, and Nizamabad—and recommended that the central government withdraw the mandatory e-KYC requirement for wage disbursement to ensure uninterrupted access to the scheme.
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