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NEWS IN NUMBERS
Sugar production to Norway’s wealth fund IMF approves Government to Demat accounts rise,
fall in the 202223 records massive losses; billiondollar support privatise a host of but incremental
marketing year cites volatile markets loan for Bangladesh other CPSEs additions on a decline
T
households demanded work
sented on January 31, a day ahead under the Mahatma Gandhi
of the Budget, showed that 6.49 National Rural Employment
crore households demanded work under Guarantee Scheme
the Mahatma Gandhi National Rural Em (MGNREGS). The survey
ployment Guarantee Scheme (MGNREGS). credited the scheme on having
Of these, 6.48 crore households were of a positive impact on income
fered employment by the government and per household, agricultural
5.7 crore actually availed it. The survey productivity, and
credited the scheme on having a positive productionrelated
impact on income per household, agricul expenditure.
tural productivity, and productionrelated 쑽
expenditure. It added that this helped with
“income diversification and infusing resi During the first COVID19
lience into rural livelihoods”. lockdown in 2020, when the
scheme was given its
highestever budget of ₹1.11
How important is MGNREGA to rural
lakh crore, it provided a critical
employment? lifeline for a record 11 crore
The Mahatma Gandhi National Rural Em workers. This is reflected in the
ployment Guarantee Act (MGNREGA) was fact that the demand for work
passed in 2005 and aimed at enhancing under MGNREGA spiked to
the livelihood security of households in ru recordhigh levels during the
ral areas. Under it, the MGNREGS is a de pandemic years. About 8.55
manddriven scheme that guarantees 100 crore households demanded
days of unskilled work per year for every MGNREGA work in 202021.
rural household that wants it, covering all
districts in the country except those with a 쑽
100% urban population. There are cur While the scheme guarantees
rently 15.51 crore active workers enrolled 100 days of employment per
under the scheme. The types of projects household per year, an analysis
undertaken for employment generation by PRS Legislative Research
under MGNREGA include those related to shows that since 201617, on
water conservation, land development, average, less than 10% of the
construction, agriculture and allied works. households completed 100
Under the scheme, if work is not provid days of wage employment.
ed within 15 days from when it is demand Another issue that continues to
ed, the worker has to be given a daily un hamper the scheme’s proper
implementation is the delay in
employment allowance. Additionally, the
wage payments.
wages of unskilled workers also have to be
paid within 15 days and in case of a delay,
the Centre has to compensate them.
Beyond being a form of insurance or safety
net for the country’s poorest rural house
holds, the scheme proved to be beneficial
not just for rural workers but migrant la MGNREGS has doubled in the last seven that “every year, about 8090% of the bud the scheme’s proper implementation is
bourers as well especially during the CO years, that is, 3.07 crore households de get gets exhausted within the first six the delay in wage payments. As per data
VID19 pandemic which saw largescale re manded work in May 2022 compared to months”, leading to a slowdown of work released by the Centre, it owed ₹4,700
verse migration. 1.64 in the same month in 2015. on the ground and a delay in wage pay crore in MGNREGA wages to 18 States as of
During the first COVID19 lockdown in ments to workers. December 14, 2022, when just three
2020, when the scheme was ramped up, How has the Centre’s allocation for months remained for the financial year to
and given its highestever budget of ₹1.11 MGNREGS changed over the years? What are the challenges to its end. Notably, In 2016, the Supreme Court
lakh crore, it provided a critical lifeline for Budgetary allocations to the flagship implementation? of India directed the government to ensure
a record 11 crore workers. Studies gave em scheme has increased successively since While the scheme guarantees 100 days of that wages were paid on time, calling the
pirical evidence that wages earned under 2013 from ₹32,992 crore in the 201314 Un employment per household per year, an act of making workers wait for wages for
MGNREGA helped compensate somewh ion Budget to ₹73,000 crore in 202122. analysis by PRS Legislative Research shows months equal to “forced labour”. Addi
ere between 20% to 80% of the income However, in recent years, the actual ex that since 201617, on average, less than tionaly, as of December 14, the govern
loss incurred because of the lockdown. penditure on the scheme has successively 10% of the households completed 100 days ment also owed ₹5,450 crore worth of ma
This is reflected in the fact that the de been higher than the amount allocated to of wage employment. Besides, the average terial costs (for MGNREGA projects) to 19
mand for work under MGNREGA spiked to it at the budget stage. For instance, in 2021 days of employment provided per house States. Furthermore, the delay in material
recordhigh levels during the pandemic 22, while ₹73,000 crore was allocated to hold under the MGNREGS fell to a fiveyear costs, has a domino impact on the MNRE
years. About 8.55 crore households de MGNREGS, supplementary allocations low this financial year. As of January 20 GA work, since a delay in payment breaks
manded MGNREGA work in 202021, fol made later pushed up the revised esti this year, the average days of employment the supply chain. Because of the pro
lowed by 8.05 crore in 202122, compared mates to ₹98,000 crore, as funds had run provided per household is just 42 days, longed delays in payments, vendors are re
to a total of 6.16 core households asking for out in the middle of the year. Even so, the while it was 50 days in 202122, 52 days in luctant to supply materials for any new
work in the prepandemic year 201920. Central government once again allocated 202021, 48 days in 201920 and 51 days in work. Another concern pointed out by a
While Finance Minister Nirmala Sithara ₹73,000 crore (25% lower than the pre 201819.While a full 100 days of employ panel of the Rural Development Ministry is
man said in the Lok Sabha during the Win vious year’s revised estimate) for the ment has not been provided per year, the that the minimum wage rate under
ter Session in December 2022 that the de scheme in budget 202223, then seeking an Parliament Committee and activist groups MGNREGS is fixed by the Centre on the ba
mand for jobs under MGNREGA has been additional ₹45,000 crore as supplemen have strongly recommended an increase sis of the Consumer Price IndexAgricultu
declining in the recent past, the new eco tary grants in the Winter Session in De in the number of guaranteed days of work ral Labourers. It noted that the type of
nomic survey data revealed that as of Janu cember. per household from 100 to 150 so that ru work done by agricultural labourers and
ary 24 this year, 6.49 crore households had The Parliamentary Standing Committee ral populations have a safety net for a lon MGNREGS workers was different, suggest
already demanded work under the on Rural Development last year ques ger period in the year. ing that minimum wage be decided visa
scheme with two more months till the fi tioned the rationale behind the Centre’s Notably, Peoples’ Action for Employ vis the Consumer Price IndexRural, which
nancial year ends. Notably, this demand budgetary allocations to MGNREGA. Point ment Guarantee (PAEG) and the NREGA it said was more recent and provided for
side figure is still larger than prepandemic ing out that despite the total expenditure Sangarsh Morcha said in a joint statement higher expenditure on education and
levels, which indicates that despite the lift on the scheme in 202021 being around on Tuesday, that if the government intends medical care.
ing of pandemic curbs and changes in mi ₹1,11,170.86 crore, the panel found it “per to provide legally guaranteed 100 days of Fake job cards, widespread corruption,
gration trends, rural households are still plexing” that the budget estimate (BE) for work per household for at least those that late uploading of muster rolls, and incon
demanding work under the scheme. Be 202122 was just ₹73,000 crore. It also worked in the scheme in the current finan sistent payment of unemployment allo
sides, the pandemicinduced demand flagged the substantial hike in allocation at cial year, that minimum budget for it in the wance are some of the other issues ham
surge notwithstanding, the Ministry of Ru the revised estimates stage in order to aug upcoming financial year 202324 should pering the implementation of MGNREGA,
ral Development informed Parliament in ment the initial sum each year. Advocacy be at least ₹2.72 lakh crore. the Parliamentary Committee pointed out
August last year work that demand under group NREGA Sangharsh Morcha noted Another issue that continues to hamper last year.
CM M ND-NDE
YK