Brief Context
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%.
Source Content
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.