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

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.