Maharashtra Owes Rs 34 Lakh in Unemployment Allowance, CAG Flags Poor Disbursal Under Employment Guarantee Scheme

Unemployment

Unemployment

A CAG report has revealed that Maharashtra failed to pay most of the unemployment allowance due under the employment guarantee scheme between 2019 and 2024. Only Rs 2,268 was disbursed against dues of nearly Rs 34.85 lakh.

Unemployment
Unemployment

Mumbai | March 31, 2026: The Maharashtra government has an outstanding liability of over Rs 34 lakh towards unemployment allowance payable under the state’s employment guarantee scheme, according to findings highlighted in the Comptroller and Auditor General of India’s (CAG) 2025 report. As per rules, families that demand work under the employment guarantee scheme must be provided employment within 15 days. If the government fails to allot work within the stipulated period, it is mandatory to pay an unemployment allowance to the applicant households. However, the audit report revealed a glaring gap in implementation during the period from 2019 to 2024.

The CAG noted that unemployment allowance worth Rs 34.85 lakh was payable during these five years, but the state disbursed only Rs 2,268. This has left an unpaid balance of Rs 34.83 lakh, raising questions over compliance with the scheme’s legal provisions and the state’s accountability towards job-seeking rural families. The report further stated that between 2019 and 2024, nearly 5.89 crore households were registered under the employment guarantee scheme in Maharashtra. Out of these, only 82,059 households demanded work, reflecting a demand rate of just 18.61 percent over the five-year period.

An audit survey of 480 job card holders revealed that 57 percent of beneficiaries did not seek work under the scheme due to low wage rates, indicating dissatisfaction with the remuneration offered. Despite this, the government reported a 99.77 percent success rate in providing employment to households that demanded work. Data shows that a total of 1.09 crore households sought employment during the five-year period, and jobs were provided to 1.09 crore households, leaving a marginal number without work entitlement.

The CAG also flagged 1,084 irregularities during the period, indicating misuse and mismanagement in scheme implementation. The highest amount linked to irregularities was reported in 2023-24, amounting to Rs 4.99 crore. The findings have sparked concerns over transparency, monitoring mechanisms, and whether eligible families are being denied compensation when work is not provided on time.

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