Implementation of MGNREGA Before
and After 2014
Author: Gaurav Yadav
Published in: International Journal of Social Policy and Rural Development
Publication Date: April 2025
Sources: Ministry of Rural Development, Government of India; NREGA.nic.in;
Economic Survey Reports; PRS Legislative Research
Introduction
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA),
introduced in 2005, is one of the largest social welfare schemes in the world. It was
created to provide at least 100 days of guaranteed wage employment in a financial year to
every rural household whose adult members volunteer to do unskilled manual work. This
scheme aims to reduce rural poverty, prevent migration, and strengthen the rural
economy.
This paper focuses on how MGNREGA has been implemented before and after the year
2014. The year 2014 marks a major political change in India, with the coming of the BJP-
led government under Prime Minister Narendra Modi. The purpose of this paper is to
compare the approach, funding, and results of the scheme in the two periods—before and
after 2014.
The scope of the article includes examining policy documents, budget allocations,
employment data, and public feedback related to the scheme. It highlights the differences
in government priorities and how these changes affected the lives of rural workers. This
comparison helps understand whether the effectiveness and impact of MGNREGA have
improved, declined, or remained the same after 2014.
Summary of the Article: Main Argument and Findings
MGNREGA was passed in 2005 by the UPA government with the aim of providing
employment and income to rural households. It guaranteed 100 days of unskilled manual
labour to those willing to work. From the start, it was seen as a landmark law for social
welfare and rural empowerment. Between 2005 and 2014, the scheme expanded rapidly.
Funds were regularly increased, and millions of rural families benefitted. In this period,
the focus was on inclusion, rights-based employment, and reducing rural distress.
After 2014, with the NDA government in power, the approach to MGNREGA changed.
Initially criticized by the Prime Minister, the scheme continued due to its popularity and
usefulness. During the COVID-19 pandemic, the scheme's importance surged as it
became a lifeline for returning migrant workers. Budget allocations were increased,
reaffirming its role in rural relief.
Before 2014, MGNREGA was treated as a legal right focusing on transparency, social
audits, and community involvement. Post-2014, the emphasis shifted to digital
management, Aadhaar linkage, and corruption control. While this improved oversight, it
also led to challenges like delayed payments and exclusion due to documentation issues.
Though the budget remained substantial post-2014, delays in fund disbursement and
payments affected implementation. Data shows rising demand for work in states like
West Bengal, Rajasthan, and Madhya Pradesh. The scheme also saw consistent female
participation, empowering rural women. However, caste discrimination and corruption at
the grassroots remain significant concerns.
In essence, while MGNREGA’s structure remained intact, its implementation style
shifted. Before 2014, it emphasized rights; post-2014, it leaned toward crisis-response
and controlled spending. Both phases had merits and drawbacks.
Strengths
MGNREGA offers a vital safety net for the rural poor, particularly during crises like
droughts or the COVID-19 pandemic. It guarantees employment and instills a sense of
dignity among workers. The scheme has boosted women’s workforce participation and
economic independence. Furthermore, it contributes to infrastructure development
through assets like ponds, roads, and check dams. Digital monitoring and improved
transparency measures have enhanced efficiency, making it a cornerstone of India’s
social protection efforts.
Weaknesses
Despite its strengths, MGNREGA faces persistent issues. Wage payment delays are
common and demoralizing. Aadhaar-related technical problems often hinder payments.
There’s a shortage of work in certain regions, and improper demand registration further
limits access. Local-level corruption and inadequate project planning reduce
effectiveness. In some areas, low awareness prevents eligible individuals from benefitting
fully from the scheme.
Conclusion
MGNREGA has significantly impacted rural livelihoods by offering employment
guarantees. Before 2014, it promoted inclusive, rights-based development. After 2014, it
continued but with increased emphasis on digital controls and efficiency. Each phase had
distinct strengths and limitations.
While technological reforms enhanced monitoring, they also brought exclusions and
administrative hurdles. Consistent funding, local-level planning, and transparency remain
crucial. For sustained success, MGNREGA must evolve beyond a crisis response tool to
a long-term employment and development mechanism. Its potential to empower rural
communities and strengthen India’s social safety net is immense if implemented
effectively.
Figure 1: Budget Allocation Trend for MGNREGA from 2008 to 2023.
Comparison of MGNREGA Implementation
Aspect Before 2014 After 2014
Budget Allocation Consistent and rising High but sometimes
delayed
Focus Rights-based, inclusive Efficiency, digital control
Technology Use Limited Aadhaar, MIS, Geo-
tagging
Challenges Corruption, fund misuse Delays, exclusions
Table 1: Comparison of key aspects of MGNREGA before and after 2014.
