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.

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.