Going off-course : On the rural jobs scheme and the Centre’s bid to change its funding : Daily Current Affairs

Date: 20/02/2023

Relevance: GS-2: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.

Key Phrases: Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), demand-driven programme, employment opportunities,

Why in News?

  • The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has been implemented for 17 years, and it has been studied and found to have a positive impact on rural areas.

MGNREGS

  • The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was enacted on August 25, 2005, and provides a legal guarantee of one hundred days of employment to adult members of any rural household willing to do public work-related unskilled manual labour at the statutory minimum wage.
  • The Ministry of Rural Development (MRD), in association with state governments, is responsible for monitoring the entire implementation of this scheme.
  • The aim of the act is to improve the purchasing power of rural people by providing semi or unskilled work to those living below the poverty line in rural India.
  • This act attempts to bridge the gap between the rich and poor in the country, and roughly one-third of the stipulated workforce must be women.

Positive Impact of MGNREGS:

  • Reduces penury among the poor citizens who avail of the scheme
  • Provides off-season employment, thereby improving household consumption
  • Acts as insurance during monsoon deficient seasons
  • Ensures greater food security through increased productivity
  • Provides employment opportunities to thousands of migrant workers during the pandemic
  • Contributes significantly to the development of infrastructure in rural areas
  • Helps combat environmental issues such as soil erosion and deforestation
  • Improves connectivity and facilitates transportation through the construction of roads
  • Promotes gender equality by providing equal opportunities to women
  • Empowers women in rural areas by increasing their decision-making power within households

Success During the Pandemic:

  • Provided employment opportunities to thousands of migrant workers who returned to rural areas due to lockdowns
  • Contributed to the increase in rural income and improved the living standards of people
  • Boosted rural demand by providing additional income to households
  • Supported the creation of healthcare infrastructure in rural areas to tackle the pandemic
  • Promoted social distancing by providing jobs close to people's homes
  • Reduced the risk of COVID-19 transmission by providing employment opportunities in the open air
  • Increased awareness and access to health and hygiene practices in rural areas through training programs for MGNREGS workers

Challenges for MGNREGS:

  • Reduced Allocation in the Union Budget:
    • The reduced allocation for the scheme in the Union Budget, from 2.14% of overall outlay in FY23 to 1.33% in FY24, has led to underfunding and wage delays, thereby impacting its implementation.
  • Depressed Demand:
    • Despite the actual demand being high, formal requests for work are only a portion of it, thereby creating a mismatch between demand and supply.
  • Ineffective Aadhaar-based Payments:
    • The Aadhaar-based payments system has not reduced corruption or wage payment delays and has created hurdles for officials and workers during implementation.
  • Proposed 60-40 Funding Split:
    • Union Rural Development Minister has proposed changing the contribution of funds from 100% by the government to a 60-40 split between the Centre and the States to make States “more vigilant regarding corruption”, but this could further complicate funding and affect payment of wages.
  • Shrinking States’ Share of Taxes:
    • The States’ share of taxes has shrunk following GST and the financial stresses during the pandemic, which could impact funding for MGNREGS.
  • Demand-driven Programme:
    • MGNREGS is a demand-driven programme, especially in poorer states, and it is incumbent upon the Centre to ensure its robust funding instead of putting the onus on individual States to do so.
  • Lack of Awareness:
    • People, especially women, are not fully aware of this scheme and its provisions leading to uninformed choices or inability to get the benefits of the scheme.
  • Poor Infrastructure Building:
    • Improper surveillance and lack of timely resources result in poor quality assets.

Conclusion:

  • The Mahatma Gandhi National Rural Employment Guarantee Scheme has undoubtedly been a game-changer in improving the lives of the rural poor by providing them with employment opportunities, especially during times of crisis like the COVID-19 pandemic.
  • However, the scheme is not without its challenges, such as underfunding, wage delays, and corruption.
  • It is imperative for the government to recognize the importance of MGNREGS in catering to the poor's right to work and to address these challenges through robust funding and better implementation.
  • The scheme has the potential to bring about a significant positive impact on the lives of millions of people, and it is up to the authorities to ensure that it reaches its full potential.

Source: The Hindu

Mains Question:

Q. Examine the impact of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in empowering rural women and reducing poverty in India. Support your answer with relevant case studies.