Increase in NREGS demand

Why in News?

  • Under the NREGS (National Rural Employment Guarantee Scheme), 2.61 crore households worked in May 2022, , which is 17.39% more than in the same month previous year.

Key Findings-

  • There was an increase in demand for NREGS after the dip in April. In April 2022, 1.86 crore families availed the NREGS, which is 12.27% lower than the number registered in April last year.
  • The number of households that availed the NREGS is lower than May 2020, when the demand steeply rose to 3.30 crore as migrant workers returned to their villages due to lockdown during the first wave of Covid-19.
  • But it is higher than the 2.10 crore figure recorded in May 2019 (pre-pandemic times).
  • In terms of states, Uttar Pradesh saw the maximum increase in terms of the absolute rise in the number of families availing the NREGS, followed by Tamil Nadu.
  • While, the maximum decline was registered in Chhattisgarh followed by Jharkhand.

About NREGS-

  • The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), also known as Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) was enacted on August 25, 2005.
  • The MGNREGA provides a legal guarantee for at least 100 days of wage employment in every financial year to adult members of any rural household willing to do unskilled manual work at the statutory minimum wage.
  • MGNREGA was introduced with an aim to enhance the purchasing power of the rural people, primarily semi or un-skilled work to people living below poverty line in rural India.
  • It attempts to bridge the gap between the rich and poor in the country. Around one-third of the stipulated work force must be women.
  • The implementation and monitoring of this scheme is under the Ministry of Rural Development (MoRD), Govt of India in association with state governments.
  • Adult population of rural households submit their name, age and address with photo to the Gram Panchayat (GP). The Gram Panchayat registers households after making enquiry and provides a job card. The employment will be provided within a radius of 5 km, if it is more than 5 km, extra wage will be paid.
  • The Ministry of Rural Development launched the National Mobile Monitoring Software (NMMS) app in May 2021, a new application meant for “improving citizen oversight and increasing transparency” in National Rural Employment Guarantee Act (NREGA) works.
  • Objective- The primary objective of the scheme is,
  • Provide 100 days of guaranteed wage employment to rural unskilled labour.
  • Decrease migration of labour from rural to urban areas.
  • Increase economic security.

Key facts about MNREGA-

  • MGNREGA provides guarantee of 100 days of wage employment in a financial year, to a rural household whose adult members volunteer to do unskilled manual work.
  • Work should be provided within 15 days of submitting the application or from the day work is demanded, wage employment will be provided to the applicant.
  • Unemployment allowance should be paid in case employment is not provided within 15 days of submitting the application or from the date when work is sought.
  • Receipt of payment within fifteen days of work done.
  • MGNREGA focuses on the social and economic empowerment of women.
  • Variety of permissible works which can be taken up by the Gram Panchayats.
  • MGNREGA provides “Green” and “Decent” work.
  • Social Audit of MGNREGA works is mandatory, which confers accountability and transparency.
  • MGNREGA works address the climate change vulnerability and safeguard the farmers from such risks and conserve natural resources.
  • There is an emphasis on strengthening the process of decentralisation by giving a crucial role in Panchayati Raj Institutions (PRIs) in planning and implementing these works.
  • The act mandates Gram sabhas to recommend the works that are to be undertaken and at least 50% of the works must be executed by them.

Outcomes of NREGS-

  • In the past 15 years, it has generated more than 31 billion person-days of employment.
  • The government has invested more than Rs 6.4 lakh crore in this demand-driven programme in the last 15 years.
  • In the rural areas of the nation, over 30 million water conservation-related assets have been developed since 2006.

Challenges-

  • Low wage rate MGNREGA wage rates of many states are less than the corresponding state minimum wages. Various judgements have upheld that the MGNREGA wage rate cannot be less than the minimum agricultural wage rate of the state.
  • Large Number of Incomplete works- There has been a delay in the completion of works under MGNREGA and inspection of projects has been irregular. Also, there is an issue of quality of work and asset creation under MGNREGA.
  • Genuine job cards being deleted to meet 100% DBT targets- Genuine job cards are being randomly deleted as there is a huge administrative pressure to meet 100 per cent Direct Benefit Transfer (DBT) implementation targets in MGNREGA.
  • In states like Jharkhand, there are multiple examples where the districts had later requested to resume job cards after civil society interventions into the matter.
  • Poor maintenance- Many structures created under MGNREGA become defunct due to poor maintenance. This simply implies the wastage of time, energy, and resources.
  • Inadequate Financing- Due to lack of funds, state governments find it difficult to meet the demand for employment under MGNREGA.
  • Rs. 73,000 crores has been allocated for the year 2021-22. It is greater than the original allocation of Rs. 61,500 crores for 2020-21. But this is 34.5% lower than the revised estimate of Rs.1,11,500 crores.

Way Forward-

  • The government could look at linking the wages to a consumption-based index- one that is revised annually, the idea is that this way the wage workers can be compensated appropriately based on their consumption needs. This may be a better approach.
  • Need to leverage technology to tackle corruption and diminish the issue of late payments through efficient management of resources.

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