Context: Report reveals delayed wages are a key factor to mismatch between MGNREGS coverage, delivery

Source: The Hindu

A review of the Mahatma Gandhi National Rural Employment Guarantee Scheme for the financial year 2024-25 reveals that while the coverage has increased, with an 8.6% rise in number of registered households under the programme, the delivery of promised employment has gone down, with person days having dropped by 7.1%.

Person days under the MGNREGS is defined as the total number of workdays by a person registered under the scheme in a financial year. The report reveals only 7% of households got 100 days of work. The MGNREG act promises guaranteed employment up to 100 days. The report shows average days of employment per household fell by 4.3% from 52.42 person days in FY 2023-24, it went down to 50.18 person days in FY 2024-25.

Odisha (34.8%), Tamil Nadu (25.1%), Rajasthan (15.9%) saw the sharpest decline in person days, while Maharashtra (39.7%), Himachal Pradesh (14.8%) and Bihar (13.3%) recorded increases.

Among the key factors leading to an overall employment drop are the inadequate allocation of budget and extraordinary delay in wage payments reported from across the country.

The Parliamentary Standing Committee on Rural Development in the past has raised concerns over reduction in budget allocation by the Union government and its effect on the progress of the scheme. People’s Action for Employment Guarantee had recommended a budget allocation of Rs.2.64 lakh crore for the MGNREGS for FY 2022-23 itself. However, the union government has allocated only 86,000 crores for FY 2024-25.

Model Question:

“Critically examine the role of MGNREGA in promoting rural livelihoods and inclusive development. What challenges does the scheme face in achieving its intended objectives?”

Model Answer:

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 is a landmark legislation that aims 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.

Role in Promoting Rural Livelihoods:

1. Income Security: Provides a safety net during agricultural lean seasons, especially for marginalized groups like SCs, STs, and women.
2. Inclusive Development: Enhances financial inclusion through direct benefit transfers to job card holders.
3. Women Empowerment: Over 50% of the workers are women, promoting gender equity.
4. Asset Creation: Facilitates durable assets such as ponds, check dams, rural roads, and plantation activities.
5. Distress Migration: Reduces seasonal migration by generating local employment.
6. Crisis Response: Acted as a lifeline during COVID-19, absorbing a large number of returning migrant workers.

Challenges:

1. Delayed Wage Payments: Undermines the purpose of employment security.
2. Underfunding: Budgetary constraints often result in curtailed demand-based employment.
3. Corruption and Ghost Beneficiaries: Weak implementation and lack of social audits enable leakages.
4. Limited Convergence: Inadequate integration with other rural development schemes.
5. Asset Quality: Poor planning affects the quality and sustainability of created assets.
6. Technological Gaps: Issues in e-muster rolls, Aadhaar seeding, and digital illiteracy among workers.

Way Forward:

1. Ensure timely release of funds and wage payments.
2. Strengthen social audits and grievance redressal mechanisms.
3. Improve planning and monitoring for durable asset creation.
4. Foster convergence with agriculture and watershed programs.

In conclusion, while MGNREGA remains a powerful tool for rural empowerment, persistent structural and administrative challenges must be addressed to fully realize its transformative potential.