Finance Minister Nirmala Sitharam today said the Centre has directed the states and union territories to provide work to the migrant workers under the Mahatma Gandhi National Employment Guarantee Act (MNREGA).

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With reverse migration of labourers across the country back to their villages and home towns, there has been a 40-50 percent increase in job seekers under MNREGA, particularly in states like Uttar Pradesh, Madhya Pradesh and Bihar.

Sitharaman said that the scheme is offering work to 2.33 crore wage seekers and has generated 14.62 man-days of work as of May 13.

The scheme had factored for about a crore jobs per day before the coronavirus pandemic broke out, but the reverse migration has led to a surge in wage seekers.

Usually just before monsoon, there is a 40-50 percent surge in people seeking MNREGA due to the construction of ponds, roads, and houses.

"This time reverse migration due to coronavirus has led to an increase in job seekers over and above the norms of 40-50 percent" said a government official who wished not to be quoted.

The Budget for this financial year has allocated Rs 61,500 crores towards MNREGA, down 13 percent over the Rs 71,000 crore spent last year.

"Annual expenditure under MNREGA this financial year so far is Rs 10,000 crore and we will allocate more if required" said Nirmala Sitharaman, Finance Minister.

Sources said that an 11 percent increase in wages could lift FY21 expenditure on MNREGA to at least Rs 79,000 crore and if reverse migration continues, it may even touch the 1 lakh crore mark for the first time in FY21.

MNREGS is a demand-based employment guarantee scheme, which assures 100 days of work to unemployed adults of a family below the poverty line.