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Mahatma Gandhi National Rural Employment Guarantee Act
Mahatma Gandhi National Rural Employment Guarantee Act
YEAR : V YEAR
SECTION : ‘B’
REG NO : HA16156
FACULTY SIGNATURE :
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A REVIEW
Methodology:
The study is based on secondary data derived from the website of MGNREGA as
well as research studies from different sources - Journals, News-papers etc.
Aims of MGNREGA:
1). To provide at least 100 days of unskilled work on demand per household per
annum within 15 days and within 5 KMs radius near to his/her address to all adults
who have completed 18 years of age, thus by ensuring economic security to
rural people.
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2). Equal wages for men and women and preference should be given to women in
each work and at least one-third (33%) of persons to whom work is allotted have to
be women, thus ensuring women empowerment and social equality.
3). Creation and maintenance of rural assets and environmental protection.
4). Lowering of rural-urban migration.
5). Panchayat Raj Institutions to have a principal role in planning and
implementation and each district has to prepare a shelf of projects.
*Professor (Associate) & Head (Retd.), Department of Economics, Kakatiya
Government (UG&PG) College (NAAC “A” Grade), Ex - Member of Board of
Studies, Kakatiya University, Warangal. (Telangana State).
Brief Review of Literature: MGNREGA is the catalyst for rural transformation.
This programme is encompassing the whole of the rural India and spends a huge
budget, when compared to several preceding employment generation programmes.
It is the largest wage employment programme in India ever launched with 25% of
rural households participating and an annual central government expenditure of
about 0.5% of GDP. Many studies are available on MGNREGA which observed
that it is the successful scheme of the Government of India to improve the
condition of rural life (For example: Bhatia and Dreze 2006 , Puri 2008).
Government’s keenness to involve the Panchayat Raj Institutions directly in this
Scheme has been highlighted by Patel (2006) in his research paper. Saha Roy
(2013), observed from different studies that there is continued illegal presence of
contractors and delay in payments is a significant negative factor affecting the
availability of work. It has been observed by Goswami (2013) in a study relating to
AP that there was a significant development in the implementation of MGNREGA
using IT in all stages of work. This Scheme has given an assurance to the rural
people 100 days of employment nearer to home but unfortunately works were not
provided within 15 days as mentioned under the provision of MGNREGA Act and
also failed to provide unemployment allowance. This was pointed by many
research works like Chandrashekhar & Ghosh (2005), Dreze Jeans et al. (2006),
Rai, (2010), Jha et al. (2012), Datta et al. Many research works have been done on
wage system in MGNREGA (For example: Anindita & Bhatia 2010, Vanaik &
Siddarth 2008, CAG 2007, NCAER 2009). Under this scheme 60% of funds
expended on wages, but though the works has been completed, due to corruption
and irregularities wages have not been paid to the beneficiaries.
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example - problem of seasonality, lack of proper planning and timely disbursement
of funds at lower level of government, poor capacity of local governments etc.
Prior to the introduction of MGNREGA, various employment generation Schemes
were introduced. They are: Community Development Programme (CDP) in 1952,
Rural Manpower Programme (RMP) in 1960, Crash Scheme for Rural
Employment (CSRE) in 1971, Intensive Rural Employment Programme (IREP) in
1972, Food for Work Programme (FWP) in 1977, National Rural Employment
Programme (NREP) in 1988-89, Rural Landless Employment Guarantee
Programme (RLEGP) in 1983-89, Jawahar Rozgar Yojana (JRY) in 1989-89,
Employment Assurance Scheme (EAS) in 1993-99, Jawahar Gram Samridhi
Yojana (JGSY) in 1999-2003, Sampoorna Grameen Rozgar Yojana (SGRY) in
2001, National Food for Work Programme (NFFWP) in 2004, NREGA 200
districts in 2006, Extension of Phase II-NREGA to additional 130 Districts in
2007, NREGA Phase III-Extended to cover all rural districts of India in 2008 and
NREGA renamed as Mahatma Gandhi National Rural Employment Guarantee Act
(MNREGA) on 2-10-2009 and extended whole country.
Modus operandi of MGNREGA: Union Ministry of Rural Development is the
nodal agency for the implementation of the scheme. The shelf of projects has to be
prepared on the basis of priority assigned by Gram Sabha. At least 50% of works
have to be allotted to Gram Panchayats for execution. A 60:40 wage and material
ratio has to be maintained. Contractors and use of labour displacing machinery
are prohibited. Provision had been made that at least 60 per cent of the work
undertaken in a district in terms of cost under the Act was for creation of
productive assets directly linked to agriculture and allied activities.
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c) The Act stipulates that the rate of the allowance has to be fixed by state
governments in consultation with State Councils. But, it should not be less than
one-fourth of the wages for the first 30 days of unemployment and half of the
wages beyond this.
d) Administrative expenses of the State Employment Guarantee Council.
Different categories of works permissible under MNREGA:
· Creation of productive assets directly linked to agriculture and allied
activities.
· Water Conservation and water harvesting.
· Drought Proofing (including plantation and afforestation).
· Irrigation canals including micro and minor irrigation works.
· Flood Control and Protection Works.
· Minor irrigation, horticulture and land development on the land of SC
/ST /BPL/ IAY and land reform beneficiaries.
· Renovation of traditional water bodies including desilting of tanks.
· Land Development.
· Rural Connectivity.
· Gram Panchayat Bhawan and Bharat Nirman Rajiv Gandhi Sewa Kendra
construction.
Recently, Government has merged Green India Mission (GIM) with the
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
Scheme. By merging GIM with MGNREGA Scheme government seeks to
increase 10 million hectares of forest cover. Social audits are a requisite tool to
monitor and evaluate the works that are being carried out under MGNREGA.
Performance (2015-16): In the financial year 2015-16, Rs.42,084 crore was spent
on MGNREGA. Performance indicators to rank the States are: Average days of
employment per household, Percentage wages paid within the promised 15
days of enlisting to work, and the work completion rate.
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days, Goa 18 days and Lakshadweep 22 days. The overall average was 49
workdays in 2015-16.
Percentage Wages Paid: MGNREGA requires that wages be paid within 15 days
of closing the muster roll. During financial year 2014-15, only 40 per cent of the
wages were paid within the stipulated time of 15 days. Manipur stood out in this
case with 82 per cent of wages being paid within 15 days while Meghalaya was
only able to pay wages for 4 per cent of the people on time.
Work Completion Rate: Work completion rate refers to the number of works
completed compared to works started, in percentage terms. Mizoram performed
best in this case with a 92 per cent work completion rate. Tripura, Haryana,
Madhya Pradesh, Himachal Pradesh also had work completion rates of above
80 per cent. Arunachal Pradesh was at the bottom at just 20 per cent work
completion rate.
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Table: 1 - MGNREGA (India) Total No. of Job Cards/Blocks/GPs as on FY:
2016-17
Job Card
Source: www.nrega.nic.in
Job Card
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5.Total No. of Workers (In Lakhs) 126.64
Source: www.nrega.nic.in
Analysis: When tables 1 and 2 are compared, it is observed that at national level
the percentage of active job cards is 61.63, in Telangana State it is 54.88 i.e. 6.75
per cent less than all India level, that is somewhat nearer to the national level.
While at national level the percentage of the active workers is 42.5, in
Telangana State, it is 44.14 per cent, i. e. higher than national average. The
percentage of SC worker against active workers at national level is 20.7, in
Telangana it is 16.79 i. e. nearer to all India level. The percentage of ST worker
against active workers at all India level is 16.15, in Telangana it is 12.53. Thus,
the overall performance of Telangana State is better when compared with the
all India level.
2. Person days Generated so far (In Cr) 155.8623 235.1449 166.21 220.37 23
7. Women Person days out of Total (%) 56.28 55.26 54.88 52.82 51
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8. Average days of employment provided per Household 36.45 48.85 40.17 45.97 46
9. Average Wage rate per day per person (Rs.) 160.6 154.09 143.92 132.7 12
11. Total Households Worked (In Cr) 4.276 4.8132 4.14 4.79 4.9
12. Total Individuals Worked (In Cr) 6.2662 7.2258 6.22 7.39 7.9
13. Differently abled persons worked 3,86,056 4,59,312 4,13,316 4,86,495 4,5
Source: www.nrega.nic.in
Table: 4 - Progress of MGNREGA (Telangana) as on FY: 2016-17
9. Average Wage rate per day per person (Rs.) 136.61 127.09 114.92 0
Source: www.nrega.nic.in
Note: Figures might not available for FYs 2012-13 and 2013-14 due to bifurcation
of AP State in to Telangana.
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Analysis: The tables 3& 4, reveals that at all India level, the approved labour
budget is decreased from Rs. 278.71 crore in 2012-13 to 220.92 crore in 2016-17
(so far). This is the same in case of Telangana also, except in 2015-16. The person
days (The amount of work done by one person in one working day) is also
decreasing at the national level from 230.46 in 2012-13 to 155.86 in 2016-17 (so
far) baring 2015-16. However, at the national level the percentage of total
labour budget is increasing from Rs. 82.69 crore in 2012-13 to Rs. 98.34 crore
in 2015-16 which is a welcome sign. SC person days % as of total person days at
national level is almost stable at 22%. It is the same in case of Telangana also. ST
person days % as of total person days at national level is decreasing from
17.79 in 2012-13 to 16.95 in 2016-17 so far. But, in case of Telangana it is
increasing from 18.18 in 2014-15 to 19.09 in 2016-17 so far, which is good for
STs of Telangana. When we see, women Person days out of Total (%) at India
level is increasing from 51.3 in 2012-13 to 56.28 in 2016-17 so far. This clearly
shows that women work participation is increasing. But, in Telangana it is
slightly decreased from 61.1% in 2014-15 to 59.78% in 2016-17 so far. At India
level, average days of employment provided per Household is decreased from 46.2
in 2012-13 to 36.45 in 2016-17 so far, in case of Telangana also the situation is
same. Average Wage rate per day per person (Rs.) at national level is increased
from Rs. 121 in 2012-13 to Rs. 161 in 2016-17. In Telangana, it is increased from
Rs. 115 in 2014-15 to Rs. 137 in 2016-17, which is less than national average.
Several Chief Ministers wrote letters to the Prime Minister that the present
MGNREGA wage is less than the minimum wage rate of their respective
States, hence it should be hiked to minimum Rs. 300 per day. At present,
Haryana State is paying Rs. 259 per day, which is the maximum MGNREGA
wage in India followed by Chandigarh Rs. 248/day. Bihar, Chattisgarh and
Madhya Pradesh paying minimum of Rs. 167/day. Total No of HHs completed
100 Days of Wage Employment at national level is 51,73,487 in 2012-13 has fallen
to 48,47,942 and 9,33,189 in 2015-16 and 2016-17 (so far) respectively. In
Telangana, it is increased from 1,60,281 in 2014-15 to 4,17,602 in 2015-16, but
decreased to 62,133 in 2016-17 so far.
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· SC person days % as of total person days at national level is almost stable at
22%. It is the same in case of Telangana also.
· Women Person days out of Total (%) at India level is increasing from 51.3
in 2012-13 to 56.28 in 2016-17 so far. This clearly shows that women
work participation is increasing. This is a welcome step. But, in
Telangana it is slightly decreased from 61.11% in 2014-15 to 59.78% in
2016-17 so far.
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· Rural asset creation.
· Children enrollment in schools increased as rural economic empowerment is
increasing.
· Participation of SCs and STs increased.
· Increase in average wages and employment.
Criticism:
· Fake bills and mustered rolls were generated and payments significantly late.
· There is a criticism that in some states, low wages are paid than the
stipulated by the Act. According to the Supreme Court judgment this comes
under ‘forced labour’.
· Controller & Auditor General of India in its report has mentioned that funds
are being misutilized in some states.
· Public Works like land development works, afforestation, irrigation works,
construction roads, flood control etc. are being carried out by wealthy
sections of the society thus betraying poor sections for whom this Act. is
meant.
· At some places, it is observed that the workers have to wait months together
for their wags and they have to pay up to Rs.50/- as bribe for their job card.
· It is also noticed that most of the works are confined to papers only and
quality is not being maintained.
· The Supreme Court Bench headed by Chief Justice K .G. Balakrishnan,
Justice Deepak Varma and Justice B.S. Chowan has commented that there is
lack of uniform policy in case of MGNREGA and they have further
commented that the funds are not reaching the eligible beneficiaries, except
in some states.
· 8,50,000 differently abled enrolled for work, but only 19% of these people
were actually given work.
· Some so called groups popped up, especially the local political groups who
are having strength and power in the village . These groups grabbed majority
of the job cards issued under MGNREGA.
Suggestions:
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· Government must avoid delay in releasing the outstanding funds of
MGNREGA. Recently, Centre released its share of funds to the tune of
Rs 12,230 crore to the states for the rural job flagship scheme
MGNREGA, only after the Supreme Court rapped it for not releasing
adequate funds for the scheme. The apex court said it was extremely
unfortunate that the government had no provision for providing
compensation to the workers, and it was regrettable that it cleared the
pending wage bill for 2015-16 only during the pendency of the case. It
ordered the Centre to release all outstanding funds for MGNREGA to the
states and directed it to pay compensation for delayed wages to farmers in
drought-hit areas. The court further directed the Centre to ensure that the
Central Employment Guarantee Council is immediately constituted under
provisions of the MNREG Act within a maximum period of 60 days and
asked it to proactively request state governments to establish the State
Employment Guarantee Council within 45 days.
· The average days of labour used was only 50 days as against 100 days
stipulated per annum by MGNREGA. Hence, it is advised to encourage the
rural people to to utilize stipulated 100 days of labour.
· There are complaints from different States that low wages are paid than the
stipulated by the Act. Hence, there should be proper check and
punishment for those who violates the rules.
· Earlier, Controller & Auditor General of India in its report has mentioned
that funds are being misutilized in some states. Hence, utmost care must be
taken to avoid misutilization of funds.
· In earlier case, the Supreme Court Bench headed by Chief Justice K .G.
Balakrishnan, Justice Deepak Varma and Justice B.S. Chowan has
commented that there is lack of uniform policy in case of MGNREGA
and they have further commented that the funds are not reaching the
eligible beneficiaries, except in some states. For example, different wages
are paid in different States. Hence, due care must be taken to follow the
uniform policy in case of MGNREGA and see that funds are reached to
the eligible beneficiaries.
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· It has been observed from different studies that (for example, Saha Roy
2013) there is continued illegal presence of contractors and delay in
payments. Hence, this should be avoided.
· Under this scheme 60% of funds expended on wages, but though the works
has been completed, due to corruption and irregularities wages have not
been paid to the beneficiaries. Hence, State Governments must take
initiative in this direction.
· At some places, it is observed that the workers have to wait months together
for their wags and they have to pay up to Rs.50/- as bribe for their job card.
Hence, States must punish such people who indulge in such activities.
· It is also noticed that most of the works are confined to papers only and
quality is not being maintained. Hence, in any case quality must not be
compromised in works.
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To conclude, though there are some shortcomings like
misappropriation of funds at some places, yet this Act is really a boon for the
rural people. If this Act is implemented transparently and corruption free, it
certainly enhances the standard of living of the rural people.
References:
Saha Roy, Chhanda, “Right Based Approach in Accessing Social Sector Services –
A Case Study of MGNREGA”, Global Research Methodology Journal, Feb-Mar-
April, II (8). 2013.
Dreze, J., Khera, Reethika and Sidharth, NREGA in Orissa: Ten loopholes and the
silver lining; Interim survey report (mimio), Survey conducted by G.B Pant
Science Institute. 2007.
Adhikari, Anindita and Kartika Bhatia, NREGA Wage Payments: Can We Bank on
the Banks? Economic & Political Weekly, 5 (1). 30-37,2010.
Vanaik and Siddarth, “Bank Payments: The End of Corruption?” Economic &
Political Weekly, 43(17). 33-39, April, 2008.
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NCAER-PIF, “Evaluating Performance of National Rural Employment Guarantee
Act”, Project Report. 2009.
www.nrega.nic.in
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