MGNREGS ? Is its significance dwindling?

MGNREGS – Is its significance dwindling?

News: In the Union Budget 2023-24, the Government has allocated INR 60,000 crore for the MGNREGS and has cut the funds by 33% compared to INR 89,000 crore in FY2022-23 (Revised Estimates).

Background:
 The Union Budget 2023-24 has allocated INR 60,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) scheme for FY2023-24.
 The allocation in FY2023-24 is only 1.3% of the total expenditure compared to 2.1% last year.
 According to Ministry Of Rural Development, the total active workers in 2022–23 are 15.12 crores. The number of households benefited were 5.78 crore in 2022-23.

Importance of MGNREGS:

Women Empowerment
 Women workers account for more than 33% of the workers under MGNREGS. Money is transferred directly into the accounts of these women workers which gives them job satisfaction, income security and empowers them to take their own decisions.

Growth of Rural economy and infrastructure
 The programme mandates that at least 60% of the works undertaken must be related to land and water conservation.
 The creation of these productive assets boost rural incomes as the majority of villages are agrarian.

Addresses the issue of Distress Migration
 Rural projects under MGNREGS in areas of water conservation has ensured that Bandlapalli village in Andhra Pradesh is drought proof today and people no longer migrate to cities in search of better life style and job security.

Relief to Migrants during COVID-19
 There was a big jump in the number of workers from 2019-20 to 2020-21 (pandemic year). MGNREGS proved to be vital in providing relief to the migrants during the distress. It ensured income support to the vulnerable during the pandemic.

Creation of Community Assets
 The scheme has helped creation of common community assets such as Johads which had remained abandoned in several villages of Haryana.

What are the issues associated with functioning of MGNREGS?
 The success of MGNREGS depends on the performance of individual States. Although centrally funded, studies show uneven outcomes across different States.
 While women and men are paid equal wages under MGNREGS, however it is seen that discrimination is observed against women. For example, fewer job cards are being issued to women.
 Delay in payment of wages. While the SC advocated for compensation to workers in case of delay the delay in payment is due to issues such as faulty/inactive Aadhar cards, blocked Bank accounts.
 There are reports of genuine job cards are being randomly deleted as there is a huge administrative pressure to meet 100% Direct Benefit Transfer (DBT) implementation targets in MGNREGA
 Plans of Gram Sabhas and Gram Panchayats are being neglected in favor of linking MGNREGS to construction of PMAY.

Way Forward
The PSC on Rural Development and Panchayati Raj has made few recommendations as follows:
 It recommended increasing the guaranteed days of work under the scheme from 100 days to 150 days.
 It recommended devising a mechanism for a unified wage rate across the country.
 The Committee recommended increase in wages in context of Inflation so that laborers are not forced to migrate to cities for better jobs
 The committee recommended due diligence in Social Audits by Gram Panchayats and subsequently making and preparing reports in context of Social audits.
 The Committee noted that payment of delay compensation is not adhered to in most places in the country. The Ministry must ensure strict compliance in payment of compensation.