MGNERGS : ECONOMY

MGNERGS : ECONOMY

NEWS :  States fall behind in paying unemployment aid

 

WHAT’S IN THE NEWS?

Only ₹90,000 released in 2023-24 as allowance for workers who are not provided jobs under the scheme; report says such figures do not reflect true demand and rural economic distress

MGNERGS (Mahatma Gandhi National Rural Employment Guarantee Scheme)

 

Disbursal Statistics

  • 2023-24: ₹90,000 released by various States
  • 2022-23: ₹7.8 lakh released
  • Previous Years:
    • 2021-22: 3 States disbursed allowance
    • 2020-21: 4 States disbursed allowance
    • 2019-20: No State disbursed funds

 

Economic Survey, 2024

  • Observation: Figures do not reflect true unmet work demand
  • Issue: Work often unavailable, block-level functionaries may not register work demand in real time
  • Flaw: Work demand reported only when employment is provided to save on State liability for unemployment allowance

 

Legal Framework

  • MGNREGA, 2005, Section 7(1): Entitlement to daily unemployment allowance if not employed within 15 days of application
  • Allowance Rate:
    • One-fourth of wage rate for first 30 days of the financial year
    • Half of wage rate for the remainder

 

Implementation Issues

  • Chronic Problem: Low disbursal of unemployment allowance
  • States’ Accountability: Allowance introduced to fix State accountability and ensure provision of work

 

Expert Opinion

  • Nikhil Dey (MKSS): Administrative deficiencies and under-budgeting by the Centre contribute to low allowance disbursal
  • Key Issue: Lack of receipts for job cardholders registering demand due to block-level administration inefficiencies

 

Parliamentary Standing Committee Report

  • Recommendation: Centre should engage at the highest level with States and Union Territories to ensure statutory duties for providing unemployment allowance are met

 

 

Conclusion

  • Unemployment Allowance underutilized: Due to administrative deficiencies and under-budgeting.

 

  •  Call for Action: Improved monitoring and engagement between Centre and States to address implementation gaps

 

MGNREGA

 

  • Launch Year: 2005 by the Ministry of Rural Development
  • Objective: Provides a legal guarantee for 100 days of employment per financial year to adult members of any rural household willing to do public work-related unskilled manual work at the statutory minimum wage.
  • Active Workers (2023-24): 14.32 Crore

 

Major Features

  • Legal Guarantee: Ensures any rural adult can request work and must receive it within 15 days.
  • Unemployment Allowance: Provided if work is not given within 15 days.
  • Women’s Participation: At least one-third of beneficiaries must be women.
  • Social Audit: Mandated by Section 17 for all works executed under MGNREGA.

 

Implementation

  • Agency: Monitored by the Ministry of Rural Development (MRD), Govt of India, in association with state governments.

 

Objective

  • Primary Aim: Improve the purchasing power of rural people, especially those living below the poverty line.
  • Secondary Aim: Bridge the gap between the rich and poor in rural India.

 

Achievements (2022-23)

  • Households Benefited: 11.37 crore
  • Employment Generated: 289.24 crore person-days
    • Women: 56.19%
    • Scheduled Castes (SCs): 19.75%
    • Scheduled Tribes (STs): 17.47%

 

Initiatives under MGNREGS

  • Amrit Sarovar: Construction/renovation of at least 75 ponds per district to increase water availability.
  • Jaldoot App: Launched in Sept 2022 for measuring water levels in Gram Panchayats through selected open wells twice a year.

 

  • Ombudsperson App: Launched in Feb 2022 for reporting and categorizing grievances related to MGNREGS implementation.

 Source : https://epaper.thehindu.com/ccidist-ws/th/th_delhi/issues/93834/OPS/GAAD5EB2I.1+GADD5FV1F.1.html