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Mahatma Gandhi National Rural Employment Guarantee Act
Mahatma Gandhi National Rural Employment Guarantee Act
Background
History
Prior to the enactment of Mahatma Gandhi NREGA, India had no programme in rural areas that promised employment as a legal right, although employment generation through rural works had a long history in India dating back to the 1960s. Since 1960,[1]</ref> the government had been merging old schemes to introduce new ones while retaining the basic objective of providing additional wage employment involving unskilled manual work, creating durable assets, and improving food security in rural areas through public works with special safeguards for the weaker sections and women of the community. The problem areas had also been almost similar like mismanagement, lack of planning and implementation. The remuneration had been a combination of wages and foodgrains across all schemes. It took 30 years of government experimentation to launch major schemes like Jawahar Rozgar Yojana (JRY), Employment Assurance Scheme (EAS), Food for Work Programme (FWP), Jawahar Gram Samridhi Yojana (JGSY) and Sampoorna Grameen Rozgar Yojana (SGRY) that were forerunners to Mahatma Gandhi NREGA. In the process, the government decentralized implementation by providing financial and functional autonomy to the local self-government institutions or Panchayati Raj Institutions (PRIs) in order to fight corruption. The government experimented with various schemes from 1960-90. The most significant ones were Food for Work Programme (FWP) of 1977 and National Rural Employment Programme (NREP) of 1980. The popular FWP provided foodgrains to complement wages. It was then revamped and renamed to NREP with almost similar objective. On 1 April 1989, to converge employment generation, infrastructure development and food security in rural areas, the government integrated NREP and RLEGP[2]</ref> into a new scheme JRY. The most significant change was the decentralization of implementation by involving local people through PRIs and hence a decreasing role of bureaucracy. Due to implementation issues, JRY was restructured and renamed to JGSY in 1999. On 2 October 1993, the EAS was initiated to provide employment during the lean agricultural season. The role of PRIs was reinforced with the local self-government at the district level called the Zilla Parishad as the main implementing authority. Again due to implementation issues, EAS was merged with SGRY in 2001.
Sonia Gandhi, the chairperson of the then ruling coalition United Progressive Alliance (UPA) is believed to be instrumental in making the Mahatma Gandhi NREGA into law.
In January 2001, the government again introduced FWP similar to the one initiated in 1977. Once again due to implementation issues, it was merged with Mahatma Gandhi NREGA in 2006. On 1 April 1999, the JRY was revamped and renamed to JGSY with a similar objective. The role of PRIs was further reinforced with the local self-government at the village level called the Village Panchayats as the sole implementing authority. But again due to implementation issues, it was merged with SGRY in 2001. Once again on 25 September 2001 to converge employment generation, infrastructure development and food security in rural areas, the government integrated EAS and JGSY into a new scheme SGRY. The role of PRIs was retained
Mahatma Gandhi National Rural Employment Guarantee Act with the Village Panchayats as the sole implementing authority. Yet again due to implementation issues, it was merged with Mahatma Gandhi NREGA in 2006. Finally on 2 February 2006, and again to converge employment generation, infrastructure development and food security in rural areas, the government integrated SGRY and FWP into a new scheme called Mahatma Gandhi NREGA. The total government allocation to these precursors of Mahatma Gandhi NREGA had been about three-quarters of 1 trillion (equivalent to over $18 billion).
Overview
According to the Eleventh Five Year Plan (200712), the number of Indians living on less than $1 a day, called Below Poverty Line (BPL), was 300 million that barely declined over the last three decades ranging from 1973 to 2004, although their proportion in the total population decreased from 36 per cent (199394) to 28 percent (200405), and the rural working class dependent on agriculture was unemployed for nearly 3 months per year which was rising due to a downward trend of the agricultural productivity and in turn also aggravating poverty. In large states like Bihar, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh, the number of poor even increased. The plan targeted poverty through MGNREGA which promised employment as an entitlement. Previous employment guarantee schemes (EGS) like Sampoorna Grameen Rozgar Yojana (SGRY) or Universal Rural Employment Programme and National Food For Work Programme (NFFWP) - both SGRY and NFFWP were merged with MGNREGA - also provided short-term unskilled employment to poor, assured food and job security and created durable assets. In contrast to the earlier wage employment programmes, MGNREGA, as per its definition, is a right-based, demand-driven public employment programme that is principally based on decentralized, participatory planning at the gram panchayat level with adequate transparency and accountability safeguards for effective implementation.
The MGNREGA is notified on 7 September 2005 with the objective of "enhancing livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year, to every household whose adult members volunteer to do unskilled manual work". In addition to this the aim of MGNREGA is to create durable assets that would augment the basic resources available to the poor. At minimum wage rate and within 5km radius of the village, the employment under MGNREGA is an entitlement that creates an obligation on the government failing which an unemployment allowance is to be paid within 15 days. Along with community participation, the MGNREGA is to be implemented mainly by the gram panchayats (GPs). The involvement of contractors is banned. Labour intensive tasks like creating infrastructure for water harvesting, drought relief and flood control are preferred. Starting from 200 districts in 2 February 2006, the MGNREGA covered all the districts of India from 1 April 2008.
Furthermore the Act sets a minimum limit to the wages, to be paid with gender equality, either on a time-rate basis or on a piece-rate basis. The states are required to evolve a set of norms for the measurement of works and schedule of rates. The unemployment allowance must be paid if the work is not provided within the statutory limit of 15 days. Moreover, the legislation details the financing pattern between the central and the state government and the establishment of the Employment Guarantee Funds at both levels. Unlike the SGRY and NFFWP, the financing to the states is based on proposals and is not predetermined. The law stipulates Gram Panchayats to have a single bank account for NREGA works which shall be subjected to public scrutiny. To promote transparency and accountability, the act mandates monthly squaring of accounts. The statute further imposes monitoring across all five levels: the village level, the block level, the district level, the state level, and the central level. Further the monitoring methods and the evaluation criteria are also detailed in the act using which an annual ranking of districts may be drawn.
For evaluation of outcomes, the law also requires management of data and maintenance of records, like registers related to employment, job cards, assets, muster rolls and complaints, by the implementing agencies at the village, block and state level. The most detailed part of the Act (chapter 10 and 11) deals with transparency and accountability that lays out role of the state, the public vigilance and, above all, the social audits. The legislation specifies the role of the state in ensuring transparency and accountability through upholding the right to information and disclosing information proactively, preparation of annual reports by CEGC for Parliament and SEGCs for state legislatures, undertaking mandatory financial audit by each district along with physical audit, taking action on audit reports, developing a Citizen's Charter, establishing vigilance and monitoring committees, and developing grievance redressal system. To ensure public accountability through public vigilance, the NREGA designates social audits as key to its implementation. The continuous process of social audit on NREGA works involves public vigilance and verification at the stipulated 11 stages of implementation: registration of families; distribution of job cards; receipt of work applications; selection of suitable public works; preparation of technical estimates; work allocation; implementation and supervision; payment of wages; payment of unemployment allowance; evaluation of outcomes; and mandatory social audit in the Gram Sabha or Social Audit Forum. The Gram Panchayat Secretary called Sarpanch is designated as the authority responsible for carrying out the social audit at all stages. For some stages, the programme officer and the junior engineer is also responsible along with Sarpanch. The statute designates the Gram Sabha meetings held to conduct social audit as the Social Audit Forums and spells out three steps to make them effective: publicity and preparation of documents; organizational and procedural aspects; and the mandatory agenda involving questions verifying compliance with norms specified at each of the 11
Mahatma Gandhi National Rural Employment Guarantee Act stages of implementation. The Act recommends establishment of Technical Resource Support Groups at district, state and central level and active use of Information Technology, like creation of a Monitoring and Information System (MIS) and a NREGA website, to assure quality in implementation of NREGA through technical support. The law allows convergence of NREGA with other programmes. As NREGA intends to create additional employment, the convergence should not affect employment provided by other programmes.
Mahatma Gandhi National Rural Employment Guarantee Act CAG audit reports discrepancies in the maintenance of prescribed basic records in up to half of the gram panchayats (GPs) which inhibits the critical evaluation of the NREGA outcomes. The unreliability of Management Information System (MIS), due to significant disparity between the data in the MIS and the actual official documents, is also reported. To address this lack of public awareness, mismanagement, and institutional incapacity, the CAG suggests a list of recommendations to the Ministry of Rural Development of the Government of India. To increase public awareness, the intensification of the Information, Education and Communication (IEC) activities is recommended. To improve management of outcomes, the CAG recommends proper maintenance of records at the gram panchayat (GP) level. A need to revamp the NREGASoft (MIS) through incorporation of strict data integrity checks in software design is also suggested. Further the Central Council is recommended to establish a central evaluation and monitoring system for "a national level, comprehensive and independent evaluation of the scheme". The CAG also recommends a timely payment of unemployment allowance to the rural poor and a wage material ratio of 60:40 in the NREGA works. Moreover for effective financial management, the CAG recommends proper maintenance of accounts, in a uniform format, on a monthly basis and also enforcing the statutory guidelines to ensure transparency in the disposal of funds. For capacity building, the CAG recommends an increase in staff hiring to fill the large number of vacancies.
1. Since its inception in 2006, around 1,10,000 crore (about USD$25 billion) has gone directly as wage payment to rural households and 1200 crore (12 billion) person-days of employment has been generated. On an average, 5 crore (50 million) households have been provided employment every year since 2008.
Mahatma Gandhi National Rural Employment Guarantee Act 2. Eighty per cent of households are being paid directly through bank/post office accounts, and 10 crore (100 million) new bank/post office accounts have been opened. 3. The average wage per person-day has gone up by 81 per cent since the Schemes inception, with state-level variations. The notified wage today varies from a minimum of 122 (USD$2.5) in Bihar, Jharkhand to 191 (USD$4) in Haryana. 4. Scheduled Castes (SCs) and Scheduled Tribes (STs) have accounted for 51 per cent of the total person-days generated and women for 47 per cent, well above the mandatory 33 per cent as required by the Act. 5. 146 lakh (14.6 million) works have been taken up since the beginning of the programme, of which about 60 per cent have been completed. 6. 12 crore (120 million) Job Cards (JCs) have been given and these along with the 9 crore (90 million) muster rolls have been uploaded on the Management Information System (MIS), available for public scrutiny. Since 201011, all details with regard to the expenditure of the MGNREGA are available on the MIS in the public domain.
Social audit
Civil society organisations (CSOs), nongovernmental organisations (NGOs), political representatives, civil servants and workers of Rajasthan and Andhra Pradesh collectively organise social audits to prevent mass corruption under the NREGA. As the corruption is attributed to the secrecy in governance, the 'Jansunwai' or public hearing and the right to information (RTI), enacted in 2005, are used to fight this secrecy. Official records obtained using RTI are read out at the public hearing to identify and rectify irregularities. "This process of reviewing official records and determining whether state reported expenditures reflect the actual monies spent on the ground is referred to as a social audit." Participation of informed citizens promotes collective responsibility and awareness about entitlements. An application under the RTI to access relevant official documents is the first step of the social audit. Then the management personnel of the social audit verify these official records by conducting field visits. Finally, the 'Jansunwai' or public hearing is organised at two levels: the Panchayat or village level and the Mandal level. The direct public debate involving the beneficiaries, political representatives, civil servants and, above all, the government officers responsible for implementing the NREGA works highlights corruption like the practice of rigging muster rolls (attendance registers) and also generates public awareness about the scheme.
The process of a social audit
These social audits on NREGA works in Rajasthan highlight: a significant demand for the scheme, less that 2 per cent corruption in the form of fudging of muster rolls, building the water harvesting infrastructure as the first priority in the drought-prone district, reduction of out-migration, and above all the women participation of more than 80 per cent in the employment guarantee scheme. The need for effective management of tasks, timely payment of wages and provision of support facilities at work sites is also emphasised. To assess the effectiveness of the mass social audits on NREGA works in Andhra Pradesh, a World Bank study investigated the effect of the social audit on the level of public awareness about NREGA, its effect on the NREGA implementation, and its efficacy as a grievance redressal mechanism. The study found that the public awareness about the NREGA increased from about 30 per cent before the social audit to about 99 per cent after the social audit. Further, the efficacy of NREGA implementation increased from an average of about 60 per cent to about 97 per cent. Finally, the effectiveness of the social audit as a grievance redressal mechanism was measured to be around 80 per cent.
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Notes
[1] Starting from 1960, the first 30 years of experimentation with employment schemes in rural areas taught few important lessons to the government like the Rural Manpower Programme taught the lesson of financial management, the Crash Scheme for Rural Employment of planning for outcomes, a Pilot Intensive Rural Employment Programme of labour intensive works, the Drought Prone Area Programme of integrated rural development, Marginal Farmers and Agricultural Labourers Scheme of rural economic development, the Food for Work Programme (FWP) of holistic development and better coordination with the states, the National Rural Employment Programme (NREP) of community development, and the Rural Landless Employment Guarantee Programme of focus on landless households.<ref> [2] The Rural Landless Employment Guarantee Programme (RLEGP) was launched in August 1983 to focus specially on landless households.<ref>
References
Footnotes Bibliography
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Mahatma Gandhi National Rural Employment Guarantee Act Pasha, Dr. Bino Paul GD and S M Fahimuddin. Role of ICT in Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) (http://books.google.com/books?id=5mZK7MSYdEgC&pg=PT59). S M Fahimuddin Pasha. p.59. ISBN978-81-921475-0-5. Planning Commission (2001). "Report Of The Working Group On Rural Poverty Alleviation Progammes For The Tenth Five Year Plan (2002-2007)" (http://planningcommission.nic.in/aboutus/committee/wrkgrp/ wg_rulpovty.pdf). " Planning Commission (http://planningcommission.nic.in/)", Government of India. Retrieved 29 October 2013. Planning Commission (2007). "Chapter 4: Rapid Poverty Reduction" (http://planningcommission.nic.in/plans/ planrel/fiveyr/11th/11_v3/11v3_ch4.pdf). " Planning Commission (http://planningcommission.nic.in/)", Government of India. Retrieved 29 October 2013. Planning Commission (2007). "Chapter 4: Employment Perspective and Labour Policy" (http:// planningcommission.nic.in/plans/planrel/fiveyr/11th/11_v1/11v1_ch4.pdf). " Planning Commission (http:// planningcommission.nic.in/)", Government of India. Retrieved 29 October 2013. Planning Commission (2007). "Chapter 9: Environment and Climate Change" (http://planningcommission.nic. in/plans/planrel/fiveyr/11th/11_v1/11v1_ch9.pdf). " Planning Commission (http://planningcommission.nic. in/)", Government of India. Retrieved 29 October 2013. Shira, Dezan & Associates; Devonshire-Ellis, Chris (31 May 2012). Doing Business in India (http://books. google.com/books?id=aIx9E5I9LB8C&pg=PA23). Springer. ISBN978-3-642-27617-0. World Bank (2008). "Social Audits: from ignorance to awareness. The AP experience" (http://www.rd.ap.gov. in/SAudit/Draft_SocialAudits_Feb08.pps). Retrieved 5 November 2013.
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External links
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) (http://nrega.nic.in/) Report of the CAG on Performance Audit of MGNREGA (http://saiindia.gov.in/english/home/Our_Products/ Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2013/Civil/Report_6/ Report_6.html) MGNREGA Sameeksha, An Anthology of Research Studies on MGNREGA (http://nrega.nic.in/netnrega/ writereaddata/Circulars/MGNREGA_SAMEEKSHA.pdf) Reports of the Planning Commission on NREGA (https://www.google.co.in/search?num=50&client=opera& channel=suggest&q=NREGA+site:planningcommission.gov.in&oq=NREGA+site:planningcommission.gov. in&gs_l=serp.3...396886.404569.0.404789.13.13.0.0.0.0.0.0..0.0....0...1c.1.29.serp..13.0.0. z48VEG9jahg)
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