The Centre’s primary rural employment scheme, Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), finds itself out of funds midway through the fiscal year. This has been reported to cause a delay in payments for MGNREGA workers and material costs unless the States utilize their own resources. The introduction of the category-wise wage payment system for SC, ST and others was an initiative by the government in the current financial year (2021-22) to depict an accurate flow of funds towards different population groups.
The Structure of MGNREGA Scheme
Signed into law in 2005, the Mahatma Gandhi National Rural Employment Guarantee Act, initially known as the National Rural Employment Guarantee Act, aimed to surge employment generation and social security in India. It is a demand-driven wage employment scheme operating under the Ministry of Rural Development. An adult in a rural household with a job card is eligible for work under this scheme.
MGNREGA promises 100 days of guaranteed wage employment in a fiscal year to adult members willing to undertake unskilled manual labour. The scheme encompasses all districts of India, apart from those with entirely urban populations. Additionally, there are provisions for an extra 50 days of unskilled wage employment in the rural areas declared drought or natural calamity-stricken.
According to Section 3(4) of the MGNREGA, the States can provide more days of employment from their funds, extending the period guaranteed under the Act.
Challenges Faced by MGNREGA
However, the intention of these schemes doesn’t always align with the implemented reality. Several issues have marred MGNREGA’s aim to provide employment to the rural populace, including low wages, lack of funds, delayed wage payments, ineffective implementation by local governments, incomplete works, and fabricated job cards.
MNREGA wage rates are even below the minimum wage for agricultural labour in 17 of the 21 main states. This low wage situation has driven workers away from MGNREGA schemes, opening a path for contractors and middlemen to control at the local level.
Funding shortages lead to state governments struggling to meet the demand for employment under MGNREGA. Most states have also failed to disburse wages within 15 days as mandated.
The role of the Panchayati Raj Institutions (PRIs) lacks effectiveness due to minimal autonomy, leading to insufficient implementation of the act. Incomplete works and irregular inspections of projects further hinder the progression of the scheme.
The existence of fake job cards, inclusion of fictitious names, missing entries and delays in job card entries cast a shadow over the integrity of the scheme.
The Need for Reform
To keep the scheme viable and successful, it is pertinent that the government provides work irrespective of the demand. There is a need for better coordination between various government departments and mechanisms to allot and measure the work. The scheme must be expanded with a focus on increasing the value and multiplying community asset works.
Addressing discrepancies in the payouts, particularly the gender wage gap, where women in the sector earn 22.24% less than their male counterparts, must become a priority.
Government officials should take the initiative to implement the scheme efficiently, eradicating obstruction, to accomplish the greater goal of aiding India’s rural poor.
