Article:
India’s MGNREGA and Issues Arising from Centralised Operations
The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is one of the largest work guarantee programs in the world, having been launched in 2005. Its purpose is to provide at least 100 days of employment in every financial year to any adult member of rural households willing to undertake public, unskilled manual work. However, internal studies by the Ministry of Rural Development indicate that the program requires significant decentralisation to operate more effectively.
Centralisation Issues with MGNREGA
Over the past few years, MGNREGS funds have been managed centrally instead of providing advance payments to Gram Sabhas for deciding upon local works. This has resulted in chronic delays in fund disbursals, forcing beneficiaries to purchase the necessary construction materials independently so as to complete development projects. Instances of such delays have been observed in Himachal Pradesh and Gujarat, where wage and material component disbursements were delayed by three to four months and six months, respectively.
The current wages under MGNREGS are also far less than market rates in many states. In Gujarat, for example, the MGNREGS wage is Rs 229, significantly lower than the minimum wage for farm labourers, which is Rs 324.20. This undermines the program’s purpose of providing a safety net for workers, especially as private contractors generally offer higher wages.
Suggested Modifications for MGNREGA
In light of these issues, the study recommends diversifying permissible works, allowing more flexibility at the ground level. Rather than specifying exact tasks, broad categories could be identified, and Gram Sabhas provided latitude to cater to the community’s precise needs and local conditions. They could then focus on their specific requirements instead of adhering to preset targets.
To ensure timeous disbursals and prevent delays in central funds, the introduction of a revolving fund system is suggested. These funds would serve as an extra internal monetary pool to cover costs when central funds are delayed.
Overall Design of MGNREGA
MGNREGS is unique among employment schemes by legally backing guarantees for rural adults to receive work within 15 days of requesting it. Failure to fulfil this obligation results in the government providing an ‘unemployment allowance’.
The MGNREGS design ensures that at least one-third of beneficiaries are women. The guarantee of wages corresponding to statutory minimum wages for agricultural laborers, as per the Minimum Wages Act, 1948, is also a significant component of the scheme.
MGNREGA’s Emphasis on Decentralised Planning
MGNREGS aims to strengthen decentralisation processes through Panchayati Raj Institutions’ (PRIs) involvement in planning and implementing works. Gram Sabhas are mandated to recommend and execute at least 50% of projects.
In summary, while MGNREGA has vast potential to provide employment and empower rural households, certain operational issues need to be addressed. More localised control and diversified permissible works can help ensure that the scheme reaches its full potential, truly serving as a lifeline for India’s rural populations.
