Rural Job Scheme: Hits & Misses
A compilation of research studies
What is MGNREGA?
In 2005, the union government passed the National Rural Employment Guarantee Act, which is both a labour law and a social security measure.
It aims to tackle poverty through the generation of employment of unskilled labour and thus, incomes.
The Mandate
The Act promises at least one hundred days of guaranteed wage employment in every financial year to every household whose adult members volunteer to
do unskilled manual work…
“Bottom-up, people-centered, demand-driven, self-selecting and rights-based”
Objectives:
• Social Protection for the vulnerable
• Creation of durable assets; protection of land and water resources
• Rural Flood Management
• Empower the marginalised (SCs, STs, women etc)
• Deepening of democracy to grassroots levels
• Cover over 200 rural districts
Salient Features
Registration with Gram
Panchayat in writing, or orally
Job Cards to each registered household for identification, notification of
work and wages
Work provided within 5 km of
residence; transport financed
otherwise
Salient Features
Priority to women for work
Prohibits use of contractors and machinery
Wages to be paid weekly
Transparency (Social Audits, Public Scrutiny)
Ground RealitiesThe success of the MGNREGA remains dubious. While the achievements cannot be denied, the failures have become evident too.
Issues related to MGNREGA
Positive Change
5 crore households, around 25% of all rural
households, were provided over 209 crore person-days of work in 2011-12
66 % of the total expenditure under
MGNREGA was spent on worker wages
40-50 % is the share of SCs and STs in the
work provided across each year of the scheme’s implementation
47% of the total person-days
generated have been by women
27 to 7% was the drop in
distress migration in Anantpur Andhra
Pradesh due to availability of work
51% works related to
water conservation, flood control,
irrigation, drought water bodies
9 % rise in gross
cropped area in Bihar thus good returns of both
public and private assets.
70% of the irrigation
structures ensured perennial water
across agricultural seasons
A Long Wait
Only 10 % households
in Rajasthan received payments within limit; in
Madhya Pradesh, 23%
In Mandla, Madhya Pradesh and Narmada, Gujarat,
people shifted back
to other works due to delay
Over 10 crore post/bank office accounts
80% of the total wages
are now being paid through these
Migration
Distress migration down but
migration in search of better
and more lucrative opportunities continues as
before
MGNREGA cannot match the wages
of skilled labour in cities.
In Rajsamand and Dungarpur districts of Rajasthan much of the MGNREGA workers were women and elderly while younger men migrated to urban centres for relatively higher incomes.
Success of Assets
Dependent on district/region-specific implementation of the scheme
Affected by factors such as poor planning, lack of technical support, irregular flow of funds, delayed payment
Lack of community involvement
Lapse in the efforts of Gram Parishads
Women: On the Field OnlyGender difference in wages reduced, yet in some public
works, the difference is larger : Rs 98.3 for men and Rs 86.1 for
women.
Unavailability of work-site facilities like crèches is a huge
disincentive
Participation of women in the scheme limited to field work
Absence in worksite management, in staff appointments, planning through participation in gram
sabhas and social audits
To get it known
Low awareness about benefits of MGNREGA has been another impediment which can be changed though social audits
Improvement in awareness levels before and after social audits
“A Government dole rife with Corruption”
Fake entries in muster rolls
Payment of less than notified
wages
Delay in payments
Inadequate staff and irregular supervision
Highly irregular social audits thus
lack of transparency and
awareness
Inactivity of gram parishads and
sabhas
As CAG looks at itNon-payment or under payment of wages of Rs
36.97 crore noticed in 14 states.
Works amounting to around Rs 4,070 crore
incomplete after one to five years of launching
Impermissible works undertaken to the tune
of Rs 2,252 crore
No social audit units in 10 states and 4 UTs,
99% of beneficiaries not provided work
within 15 days were not paid the
unemployment allowance.
The per rural household
employment has declined from 54 days in 2009-10 to 43 days
in 2011-12
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