Context: Forum flags fall in employment days under MGNREGS

Source: The Hindu

According to a group of non-profit organizations, the average number of work days per household under the Mahatma Gandhi National Rural Employment Guarantee policy decreased from 52.08 days in 2023–2024 to just 44.62 days in 2024–2025, falling short of the 100 days of employment provided under the policy.

The total number of workdays worked by an individual registered under the MGNREGS throughout a fiscal year is referred to as “person days.”

The allocation has further decreased to just 0.24% of GDP as a percentage, down from 0.26% in the prior fiscal year.

An insufficient budget, according to the NREGA morcha, will lead to severe wage payment delays that worsen financial hardship for rural workers, stifle demand for work and deprive people of their right to employment, reduce the production of high-quality assets, and erode rural infrastructure.

Model Question:

Critically examine the impact of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on rural employment and poverty alleviation in India. Suggest measures to enhance its effectiveness.

Model Answer:

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, is a flagship social security scheme aimed at providing 100 days of guaranteed wage employment to rural households. It plays a crucial role in addressing rural unemployment, poverty, and social security while promoting sustainable rural development.

Impact of MGNREGA on Rural Employment and Poverty Alleviation

Positive Impacts:

1. Employment Generation: Provided billions of person-days of employment, reducing seasonal unemployment. Enhanced livelihood security, especially for marginalized groups.
2. Poverty Reduction: Increased rural wages and reduced income inequality. Strengthened women’s financial independence, as nearly 50% of the workforce are women.
3. Asset Creation & Infrastructure Development: Constructed roads, ponds, check dams, and irrigation facilities, enhancing agricultural productivity. Led to water conservation and improved climate resilience in rural areas.
4. Social Inclusion: Provided employment to SCs, STs, and women, ensuring social justice.

Reduced distress migration by creating local employment opportunities.

Challenges and Limitations:

1. Delay in Wage Payments: Many workers face delayed or non-payment of wages, discouraging participation.
2. Corruption and Leakages: Fake job cards, ghost beneficiaries, and misallocation of funds weaken implementation.
3. Lack of Skilled Work and Asset Quality Issues: Focus remains on low-skill manual labor, limiting long-term economic benefits. Some created assets are poorly maintained or not strategically planned.
4. Insufficient Budget Allocation: Annual allocations often fall short of demand, leading to work rationing.
5. Bureaucratic Hurdles: Complex approval and fund release processes slow down implementation.

Measures to Enhance Effectiveness

1. Ensuring Timely Wage Payments: Use direct benefit transfer (DBT) and digital monitoring for faster payments.
2. Strengthening Transparency and Accountability: Enhance social audits and community participation to curb corruption.
3. Improving Asset Quality & Sustainability: Focus on long-term productive assets like agroforestry, watershed management, and rural roads.
4. Skill Development Integration: Link MGNREGA with skill training programs for long-term employment opportunities.
5. Increased Budgetary Allocation: Ensure adequate funds based on actual demand to prevent work rationing.
6. Leveraging Technology: Use GIS mapping, AI, and real-time data tracking for better project implementation.

MGNREGA has significantly contributed to rural employment and poverty alleviation, but challenges persist. Strengthening implementation through transparency, timely payments, better asset creation, and skill development can enhance its impact, making it a more effective tool for rural transformation.