Syllabus: GS2/Policy and Intervention; GS3/Economy
Context
- A recent report by LibTech India has raised questions about the effectiveness of Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for the financial year 2024–25.
Key Findings of the Report
- Increase in Coverage: The number of registered households under MGNREGS rose by 8.6%, from 13.80 crore in FY 2023–24 to 14.98 crore in FY 2024–25.
- Decline in Employment Days: Despite higher registration, persondays fell by 7.1%. Average employment per household dropped from 52.42 days to 50.18 days, a 4.3% decrease.
- Only about 7% of households received the full 100 days of employment guaranteed under the Act.
- Regional Disparities: States like Odisha (34.8%), Tamil Nadu (25.1%), and Rajasthan (15.9%) saw a sharp decline in employment days, while Maharashtra (39.7%), Himachal Pradesh (14.8%), and Bihar (13.3%) recorded increases.
| Key Features of MGNREGA (2005) – Employment Guarantee: Ensures 100 days of wage employment to rural households. – Funding Structure: 90:10 (Centre & State Government) 1. Budget allocations vary based on demand. – Legal Entitlement: Workers have a legal right to employment under the Act. – Compensation is provided if work is not assigned within 15 days of demand. – Wage Payment and Worksite Facilities: Wages must be paid within 15 days of work completion. 1. Worksites must provide basic facilities like drinking water, shade, and first aid. Key Objectives – Asset Creation: Focuses on durable and productive rural assets such as water conservation structures, roads, and irrigation facilities. – Social Inclusion: Prioritizes employment for women, Scheduled Castes (SCs), and Scheduled Tribes (STs). – Decentralized Planning: Strengthens Panchayati Raj Institutions (PRIs) by involving them in planning and implementation. Implementation and Impact – Nationwide Coverage: Initially launched in 200 districts in 2006, it was later expanded to cover all rural districts. – Women’s Participation: Women’s involvement in MGNREGA has risen from 48% in FY 2013-14 to over 58% in FY 2024-25. – Rural Asset Development: Over 8.07 crore rural assets have been created under the scheme. |
Challenges Affecting MGNREGS Delivery
- Budget Constraints: The Union government allocated only ₹86,000 crore for MGNREGS in FY 2024-25, significantly lower than the ₹2.64 lakh crore recommended by People’s Action for Employment Guarantee (PAEG).
- Delayed Wage Payments: Persistent delays in wage disbursement have discouraged participation in the scheme.
- High Deletion Rates: Between 2022 and 2024, 7.8 crore workers were removed from the scheme, while only 1.92 crore were added, leading to concerns about accessibility.
Way Forward
- Timely budget revisions to ensure adequate funding.
- Streamlining wage payments to improve worker participation.
- Better monitoring mechanisms to track employment trends and prevent exclusions.
Previous article
US Passes Take It Down Act
