Why in news?
Institute of Economic Growth (IEG) survey has pointed few areas of failures in the MGNREGA.
What is MGNREGA?
- Mahatma Gandhi National Rural Employment Generation Act,is an Indian labour law and social security measure that aims to guarantee the 'right to work'.
- It aims to enhance livelihood security in rural areas by providing at least 100 days of wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.
- Employment is to be provided based on demand and within 5 km of an applicant's residence, and minimum wages are to be paid.
- If work is not provided within 15 days of applying, applicants are entitled to an unemployment allowance.
- The budgetary allocations for the scheme is shared by the Centre and states on a 75:25 basis.
- There is a steady annual increase in the budgetary allocations to MGNREGA, which touched a record Rs 48,000 crore in 2017-18.
What are the positive findings of the report?
- In the past few years, many villages shifted their focus towards taking up soil and water conservation works under this scheme.
- As a result, there is an 11.5% increase in the productivity of cereals and a 32% rise in the case of vegetables in areas where water-conservation assets have been created.
- Rural income has risen by 11% in these areas.
- 160 crore man-days had been generated under the MGNREGA, in the 2017-18 fiscal.
What are the negative findings on MGNREGA?
- Average wages earned by MGNREGA workers in many regions were lower than market rates.
- Migration from rural areas has continued in about 80% of the surveyed districts, in others it has dipped only marginally.
- Low wages and an inadequate number of days of assured employment are reasons for migration of rural population for jobs.
- There have been rampant malpractices, leakage of funds and diversion of resources to other sectors by state governments.
- Instances of huge use of fake job cards and fake entries in job sheets has been found, in many cases people had multiple cards to draw extra benefits.
Source: Business Standard
