The budgetary allocation for NREGS has been increased to Rs 40,100 crore from Rs 39,100 crore last year. While the raise appears to be quite paltry considering the NREGS is the UPA government's flagship social welfare scheme, it belies the underuse of funds. Only a little over 70 per cent of the funds have been utilised so far this fiscal year. Many states are lagging behind in using the funds.