The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), established under the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, is one of the largest work guarantee programs worldwide. The scheme’s primary objective is to guarantee 100 days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work.
Unlike earlier employment guarantee schemes, MGNREGA attempts to tackle chronic poverty causes through a rights-based framework. At least one-third of beneficiaries must be women, and wages must adhere to the statutory minimum wages specified for agricultural laborers in each state under the Minimum Wages Act, 1948.
MGNREGA’s Demand-Driven Design
The cornerstone of MGNREGA’s design is its legally supported guarantee for any rural adult to attain work within 15 days of demanding it; otherwise, an ‘unemployment allowance’ should be given. This demand-driven strategy enables worker self-selection.
A central theme of the scheme is the strengthening of decentralization by allowing Panchayati Raj Institutions (PRIs) a significant role in the planning and implementation of works. The act mandates Gram Sabhas to suggest the works to be undertaken, and at least 50% of the works must be executed by them.
Fresh Wage Rates Under MGNREGA
Recently, the Ministry of Rural Development disclosed fresh wage rates under the Act for the financial year 2022-23. The new wage rates are determined based on fluctuations in the Consumer Price Index-Agriculture Labor (CPI-AL), reflecting inflation increases in rural areas. The revised rates result in 21 out of 34 states and Union Territories getting less than a 5% increase, and 10 states getting more than a 5% hike.
The maximum rise of 7.14% was recorded in Goa, whereas the minimal increase of 1.77% was observed in Meghalaya. The wage rates for three states – Manipur, Mizoram, and Tripura remained unchanged.
Challenges in the Implementation of MGNREGA
There are numerous issues linked with the Scheme’s implementation. These include delays and insufficiencies in fund dispersal, caste-based segregation, the ineffective role of PRIs, incomplete works, and issues related to job cards.
Most states have struggled to disburse wages within 15 days as mandated by MGNREGA, and workers aren’t compensated for payment delays. Caste-based segregation is evident, with significant variations in payment delays amongst different castes. Moreover, gram panchayats are not able to implement this act effectively due to limited autonomy.
Large numbers of unfinished works, irregular project inspections, quality issues, and problems with job cards, such as fake job cards, inclusion of fictitious names, missing entries, and delays in entries, are other pressing challenges.
Recommendations for the Way Forward
Increasing coordination between various government departments and streamlining work allocation and measurement mechanisms may improve the efficacy of the scheme. Addressing discrepancies in payouts is needed, particularly considering that women in the sector earn on average 22.24% less than their male counterparts.
State governments should ensure that public work commences in every village without delay. Local bodies must proactively reach out to returned and quarantined migrant workers and assist those in need of job cards. Gram panchayats need adequate resources, powers, and responsibilities to sanction works, provide work on demand, and authorize wage payments. Converging MGNREGA with other government schemes, like the Green India initiative and Swachh Bharat Abhiyan, is another potential improvement strategy.
