The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was instrumental in compensating 20-80% of the income loss incurred as a result of Covid-19 pandemic, based on a study conducted by Azim Premji University across Bihar, Karnataka, Maharashtra, and Madhya Pradesh. Despite this, approximately 39% households surveyed did not secure a single day of work in that year due to insufficient sanctioned/opened jobs.
Understanding MGNREGA
Launched in 2005 by the Ministry of Rural Development, MGNREGA is one of the globe’s largest work guarantee schemes. The principal aim is to provide a guaranteed 100 days of employment to any rural adult ready to undertake unskilled manual public work. As of 2022-2023, there are about 15.4 crore active workers under the program.
Under MGNREGA, at least one-third of beneficiaries must be women, and wages should align with the minimum wages specified for agricultural labourers under the Minimum Wages Act, 1948. The act offers a legally-backed guarantee for providing job within 15 days of request, otherwise an ‘unemployment allowance’ is to be paid.
Decentralization and MGNREGA
Decentralization is a critical aspect of MGNREGA, with Panchayati Raj Institutions (PRIs) playing a substantial role in planning and executing works. Gram Sabhas have been mandated to suggest the works to be undertaken, and at least half of such tasks need to be executed by them.
Problems with Implementation
Unfortunately, delay in fund disbursement is common, with most states failing to distribute wages within the stipulated 15-day period. Moreover, workers are not compensated for payment delays. With inadequate funds leading to late wage payments, workers’ interest in the program is decreasing.
Caste Based Obstacles
Significant discrepancies have been found in delays based on caste. A higher percentage of payments to SC and ST workers are completed within the stipulated period, compared to non-SC/ST workers. The impact of caste-based segregation is particularly profound in economically weaker states.
Inefficiencies within PRI & Fabrication of Job Cards
Gram Panchayats, with minimal autonomy, have failed to successfully implement the act. Additionally, there has been a delay in completing works under MGNREGA and the inspection of projects remains irregular. There have also been instances of fake job cards, fictitious names, missing entries, and delays in making entries.
Guidelines for Improvement
To remedy the issues, a better coordination among government departments is needed, along with a mechanism for assigning and measuring work. Discrepancies in payouts, which sees women earning 22.24% less than their male counterparts on average, must be addressed. Additionally, initiatives should be taken at the state level to start public work in every village and provide work promptly to those appearing at the worksite. Furthermore, local bodies should aid returned and quarantined migrant workers to secure job cards. Gram panchayats need more resources, powers, and responsibilities to sanction works, provide work on demand and authorize wage payments promptly. Consideration should also be given for convergence of MGNREGA with other government schemes like the Green India initiative, Swachh Bharat Abhiyan, etc.
