News Analysis India

Tag: MGNREGA

  • MGNREGA Wage Hike And Congress’ Guarantees: Will It Impact 2024 Lok Sabha Polls? |

    NEW DELHI: As India braces itself for the crucial 2024 Lok Sabha elections, a significant development in the realm of rural employment has emerged, potentially altering the electoral calculus. The Ministry of Rural Development has been authorised by the Election Commission of India to announce revised wages under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for the upcoming financial year, which has sparked discussions and debates across the political spectrum.

    The Significance Of MGNREGA

    MGNREGA, a flagship rural employment scheme of the erstwhile UPA regime guaranteeing 100 days of work each year for every rural household, was enacted in 2005. It holds immense significance in India’s socio-economic landscape. Aimed at providing livelihood security to rural households by guaranteeing 100 days of wage employment in a financial year, MGNREGA plays a pivotal role in alleviating poverty, boosting rural incomes, and enhancing agricultural productivity. The MGNREGA was initiated with the objective of “enhancing livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year, to every household whose adult members volunteer to do unskilled manual work”. Another aim of MGNREGA is to create durable assets (such as roads, canals, ponds and wells). Employment is to be provided 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. Thus, employment under MGNREGA is a legal entitlement.

    Implications Of The Wage Hike

    The authorization to announce revised wages under MGNREGA comes at a critical juncture – the Model Code of Conduct is in force across the country and the Lok Sabha elections are just a few days away. The decision to raise minimum wages to Rs 400 per day, if implemented, holds profound implications for millions of rural households dependent on MGNREGA for sustenance.

    Political Ramifications

    From a political standpoint, the timing of the wage hike announcement is noteworthy. As political parties intensify their election campaigns, issues related to rural development, farmer welfare, and employment generation take centre stage. The MGNREGA wage hike could potentially sway voter sentiment in rural constituencies, where agrarian distress and unemployment remain pressing concerns.

    Congress’ Guarantees

    In a bid to bolster its electoral prospects and resonate with diverse segments of society, the Congress party has further unveiled a comprehensive set of guarantees targeting farmers, women, workers, unemployed youths, and backward communities.

    What Are Major Congress’ Guarantees?

    Farmers: The Congress has promised to overhaul existing agricultural policies, including amending the Goods and Services Tax (GST) regime to exempt agricultural materials, redesigning the PM Fasal Bima Yojana to ensure timely compensation for crop loss, establishing a Standing Farm Loan Waiver Commission, and enacting legislation to grant Minimum Support Price (MSP) legal status.

    Workers: The party has pledged to review labour codes, raise MGNREGA wages, pass a right-to-health law, and introduce an urban employment guarantee scheme.

    Women: Congress aims to empower women through various initiatives, including social security measures and participatory justice programs.

    Unemployed Youths: The party has proposed measures to address youth unemployment through skill development programs and job creation initiatives.

    Backward Communities: Congress has committed to conducting a comprehensive social, economic, and caste census, removing the 50% cap on reservations, and allocating budgetary resources proportionate to the population share of Scheduled Castes (SC) and Scheduled Tribes (ST).

    The confluence of the MGNREGA wage hike and Congress’ guarantees underscores the pivotal role of socio-economic welfare policies in shaping the electoral discourse. As political parties vie for voter support, issues of rural development, farmer welfare, and inclusive growth take precedence, setting the stage for a fiercely contested electoral battle in 2024.

  • Himachal CM Sukhu announces Rs 4,500-crore package to aid disaster-hit people

    By PTI

    SHIMLA: Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Saturday announced a special package of Rs 4,500 crore, including Rs 1,000 crore under MGNREGA, to aid people affected by rain-related disasters during the July 7 to September 30 period.

    Of the total package, Rs 3,500 crore is for disaster-affected people and Rs 1,000 crore is to be used under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for the construction of retaining walls, he told reporters.

    Sukhu said aid from the special package will be given irrespective of income limit to all affected people whose houses, agricultural or any other types of land or crops have been damaged.

    The chief minister said 3,500 houses were completely destroyed and 13,000 partially damaged during the period and that his government has so far spent Rs 1,850 crore from its own funds for temporary restoration of services and Rs 1,051 crore would be released soon.

    READ MORE | Centre’s Rs 200 crore aid for Himachal Pradesh rain relief not enough: CM Sukhvinder Singh

    Relief to people whose houses have been completely destroyed has been increased by the state government to Rs 7 lakh, irrespective of whether they were kutcha or pucca houses, he said, adding that free electricity and water connections are also being provided in addition to cement at government rates.

    The relief for partially damaged houses has been increased from Rs 4,000 to Rs 1 lakh, shops and dhabas from Rs 6,500 to Rs 1 lakh and for cowsheds from Rs 3,000 to Rs 50,000, the chief minister told news persons.

    Aid for loss of agriculture and horticulture crops has been increased from Rs 3,615 per hectare (12.5 bigha) to Rs 10,000 per Bigha, he said.

    People whose lands have been washed away or rendered unfit for construction will be allotted 135 square yards of land in rural areas and 90 square yards in urban areas, Sukhu said, adding that people whose belongings have been completely destroyed would get Rs 50,000 as relief instead of Rs 2,500.

    The chief minister also accused the BJP in Himachal Pradesh of playing politics during the calamity.

    He said the party did not support the government resolution seeking to declare the calamity as a national disaster and announce a special relief package of Rs 12,000 crore.

    READ MORE | Rise above politics to help flood-hit people in Himachal Pradesh: Priyanka tells Centre

    Sukhu added that except for funds under disaster management, no additional relief from the Centre has been received so far.

    The Himachal chief minister said his government had announced special packages to disaster-hit people on its own in spite of a financial crunch.

    On August 18, the chief minister declared the massive damage caused by heavy rains as a state calamity.

    The Himachal Pradesh assembly on September 20 adopted a resolution by voice vote, urging the Union government to declare the recent calamity in the state as a national disaster and announce a special relief package of Rs 12,000 crore.

    More than 290 people died in rain-related incidents since the onset of the monsoon on June 24, and as many as 168 landslides and 72 flash flood incidents were reported.

    ALSO READ | Himachal has not seen such ‘widespread heavy rains’ in 50 years: CM Sukhu

    SHIMLA: Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Saturday announced a special package of Rs 4,500 crore, including Rs 1,000 crore under MGNREGA, to aid people affected by rain-related disasters during the July 7 to September 30 period.

    Of the total package, Rs 3,500 crore is for disaster-affected people and Rs 1,000 crore is to be used under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for the construction of retaining walls, he told reporters.

    Sukhu said aid from the special package will be given irrespective of income limit to all affected people whose houses, agricultural or any other types of land or crops have been damaged.googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });

    The chief minister said 3,500 houses were completely destroyed and 13,000 partially damaged during the period and that his government has so far spent Rs 1,850 crore from its own funds for temporary restoration of services and Rs 1,051 crore would be released soon.

    READ MORE | Centre’s Rs 200 crore aid for Himachal Pradesh rain relief not enough: CM Sukhvinder Singh

    Relief to people whose houses have been completely destroyed has been increased by the state government to Rs 7 lakh, irrespective of whether they were kutcha or pucca houses, he said, adding that free electricity and water connections are also being provided in addition to cement at government rates.

    The relief for partially damaged houses has been increased from Rs 4,000 to Rs 1 lakh, shops and dhabas from Rs 6,500 to Rs 1 lakh and for cowsheds from Rs 3,000 to Rs 50,000, the chief minister told news persons.

    Aid for loss of agriculture and horticulture crops has been increased from Rs 3,615 per hectare (12.5 bigha) to Rs 10,000 per Bigha, he said.

    People whose lands have been washed away or rendered unfit for construction will be allotted 135 square yards of land in rural areas and 90 square yards in urban areas, Sukhu said, adding that people whose belongings have been completely destroyed would get Rs 50,000 as relief instead of Rs 2,500.

    The chief minister also accused the BJP in Himachal Pradesh of playing politics during the calamity.

    He said the party did not support the government resolution seeking to declare the calamity as a national disaster and announce a special relief package of Rs 12,000 crore.

    READ MORE | Rise above politics to help flood-hit people in Himachal Pradesh: Priyanka tells Centre

    Sukhu added that except for funds under disaster management, no additional relief from the Centre has been received so far.

    The Himachal chief minister said his government had announced special packages to disaster-hit people on its own in spite of a financial crunch.

    On August 18, the chief minister declared the massive damage caused by heavy rains as a state calamity.

    The Himachal Pradesh assembly on September 20 adopted a resolution by voice vote, urging the Union government to declare the recent calamity in the state as a national disaster and announce a special relief package of Rs 12,000 crore.

    More than 290 people died in rain-related incidents since the onset of the monsoon on June 24, and as many as 168 landslides and 72 flash flood incidents were reported.

    ALSO READ | Himachal has not seen such ‘widespread heavy rains’ in 50 years: CM Sukhu

  • Over 5 crore MGNREGA job cards deleted in 2022-23: Centre

    Rural Development Minister Giriraj Singh said that in 2021-22, MGNREGA job cards of 1,49,51,247 workers were deleted while in 2022-23 the number was 5,18,91,168. NEW DELHI: More than five crore job cards under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) were cancelled in 2022-23, 247 per cent more than the number of deletions in 2021-22, the Lok Sabha was informed on Tuesday.

    In a written reply, Rural Development Minister Giriraj Singh said that in 2021-22, MGNREGA job cards of 1,49,51,247 workers were deleted while in 2022-23 the number was 5,18,91,168.

    West Bengal, Andhra Pradesh and Telangana were among the states which saw the highest number of deletions.

    In 2021-22, as many as 1,57,309 job cards were deleted in West Bengal, while in the following fiscal, the number shot up by over 5,000 per cent to 83,36,115.

    In Andhra Pradesh, 6,25,514 job cards were deleted in 2021-22, which increased by 1,147 per cent in 2022-23, when 78,05,569 job cards were cancelled.

    Similarly, in Telangana, 61,278 job cards were deleted in 2021-22, while 17,32,936 cards were deleted in 2022-23, an increase of 2,727 per cent.

    Gujarat deleted 1,43,202 workers’ job cards in 2021-22 and 4,30,404 in 2022-23, a jump of over 200 per cent.

    In his reply, Singh said the deletions were made due to reasons such as “fake” job cards, duplicate job cards, people not willing to work anymore, family shifted from Gram Panchayat permanently, or deaths.

    In reply to another question, Singh said 2.95 crore people in the age group of 18-30 years were registered under the scheme up to the 2020-21 financial year which was increased to 3.06 crore up to financial year 2022-23.

    In 2022-23, 57.43 per cent of MGNREGA workers were women.

    The Mahatma Gandhi National Rural Employment Guarantee Scheme is aimed at enhancing livelihood security by providing at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.

  • ‘PM conducting ‘Mann ki Baat’ 100th episode while depriving Bengal of MGNREGA funds’

    By PTI

    KARANDIGHI: Senior TMC leader Abhishek Banerjee on Monday took a dig at Prime Minister Narendra Modi over his ‘Mann ki Baat’ radio broadcast and said while its 100th episode was heralded with great fanfare, the poor masses of Bengal were deprived of Central funds under the 100-day MGNREGA scheme.

    In the 100th episode of ‘Mann ki Baat’, Modi on Sunday said the broadcast filled the “emptiness” he felt after coming to Delhi in 2014 and described it as an expression of the feelings of crores of Indians which has ensured he is never cut-off from people.

    “On the one hand, the prime minister is busy conducting the 100th episode of the Mann ki Baat programme, and the Centre, out of vendetta, has stopped the funds due to Bengal.

    “They are depriving the poor people of West Bengal by denying MGNREGA funds to Bengal. It (BJP) is trying to punish the state’s people for their defeat in the last assembly poll in 2021. It is yet to accept the defeat,” he said while addressing a rally in Uttar Dinajpur district.

    Banerjee, the TMC national general secretary, while addressing a rally as part of the ‘Trinamool-eh Nabajowar’ (new wave in Trinamool) mass outreach campaign, criticised the BJP MPs from West Bengal for being party to the conspiracy in withholding the dues of the state.

    “People are failing to get roti and bhaat (rice) while the PM is conducting the Mann ki Baat programme. West Bengal is the only state where funds have been stopped. Lakhs of poor people across the state are affected due to non-payment of dues by the Centre. The MPs and MLAs of BJP from the state are also part of this conspiracy to withhold funds,” he said.

    Banerjee’s remark drew sharp reactions from the BJP, which dubbed the allegations as baseless.

    “The BJP has no role in stopping funds. The TMC has a habit of levelling baseless allegations. The people of the state disagree with such canards spread by the TMC,” BJP state spokesperson Samik Bhattacharya said.

    KARANDIGHI: Senior TMC leader Abhishek Banerjee on Monday took a dig at Prime Minister Narendra Modi over his ‘Mann ki Baat’ radio broadcast and said while its 100th episode was heralded with great fanfare, the poor masses of Bengal were deprived of Central funds under the 100-day MGNREGA scheme.

    In the 100th episode of ‘Mann ki Baat’, Modi on Sunday said the broadcast filled the “emptiness” he felt after coming to Delhi in 2014 and described it as an expression of the feelings of crores of Indians which has ensured he is never cut-off from people.

    “On the one hand, the prime minister is busy conducting the 100th episode of the Mann ki Baat programme, and the Centre, out of vendetta, has stopped the funds due to Bengal.googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });

    “They are depriving the poor people of West Bengal by denying MGNREGA funds to Bengal. It (BJP) is trying to punish the state’s people for their defeat in the last assembly poll in 2021. It is yet to accept the defeat,” he said while addressing a rally in Uttar Dinajpur district.

    Banerjee, the TMC national general secretary, while addressing a rally as part of the ‘Trinamool-eh Nabajowar’ (new wave in Trinamool) mass outreach campaign, criticised the BJP MPs from West Bengal for being party to the conspiracy in withholding the dues of the state.

    “People are failing to get roti and bhaat (rice) while the PM is conducting the Mann ki Baat programme. West Bengal is the only state where funds have been stopped. Lakhs of poor people across the state are affected due to non-payment of dues by the Centre. The MPs and MLAs of BJP from the state are also part of this conspiracy to withhold funds,” he said.

    Banerjee’s remark drew sharp reactions from the BJP, which dubbed the allegations as baseless.

    “The BJP has no role in stopping funds. The TMC has a habit of levelling baseless allegations. The people of the state disagree with such canards spread by the TMC,” BJP state spokesperson Samik Bhattacharya said.

  • Bengal govt pauses rural job scheme as Centre holds funds

    Express News Service

    KOLKATA:  In an unprecedented move, the West Bengal government has decided to press an indefinite pause button on the rural job guarantee scheme in the state as the Centre is yet to approve its labour budget for 2022-23 fiscal. Officials in the districts have been asked not to initiate any work under the MGNREGA.

    Sources in Nabanna, the state secretariat, said the decision was followed by the Centre’s decision to withhold the release of Rs 6,500 crore under the MGNREGA after a national-level monitoring team had raised questions over the way funds had been spent in some areas and the state government’s answers were not satisfactory.

    The TMC government’s decision of stalling the works under the scheme is said to be significant as the state will go to panchayat elections next year and the scheme benefits the voters in rural Bengal. Earlier, the state government used to allow the MGNREGA works even if there were delays in the approval of the labour budget by the Centre.

    “This is because the Centre had never stopped the fund flow under the scheme. But this time the unprecedented decision has been taken because the state is not in a position to afford the risk of launching work under the MGNREGA as there is a realisation that the Centre is unlikely to release the funds in near future,” said the official.

    The state government’s decision has already been communicated to the district magistrates who are sending messages to the block development officers (BDOs). “You are requested to proceed very slowly as the labour budget for this FY is yet to be approved. You are again requested not to approve any material-based scheme until further communication,” a message to a BDO reads.

     While the Centre pays the entire wage bill for the people employed under the MGNREGA, the state bears 25 per cent of the material cost of the project under the job scheme.

  • Jharkhand IAS officer Pooja Singhal sent to judicial custody till June 8 in money laundering case 

    By PTI

    RANCHI: A special PMLA court on Wednesday sent Pooja Singhal, the suspended IAS officer from Jharkhand, to judicial custody till June 8 in connection with a money laundering case linked to alleged embezzlement of MGNREGA funds, said a lawyer of the Enforcement Directorate which is investigating it.

    The bureaucrat was in the ED custody for 14 days.

    After being produced before the special PMLA court of Prbhat Kumar Sharma by the ED, Singhal was sent to Birsa Munda Central Jail at Hotwar in Ranchi.

    “Singhal on completion of 14 days in ED custody was produced today before the special PMLA court and was remanded to judicial custody till June 8 as per court orders. She was sent to Hotwar Jail,” special prosecutor of the ED, BMP Singh, told PTI.

    Singhal will be produced before the court of the Prevention of Money Laundering Act (PMLA) on June 8 via video conferencing.

    The ED requested the court to grant permission to its sleuths to interrogate her in jail whenever required.

    “I argued that it is a larger conspiracy and we have to interrogate her again. There is a legal provision that we (ED) cannot get her in ED custody for more than 14 days. So we submitted a prayer to the court to order the jail superintendent that whenever required we can question her. The court asked us to file a separate petition when such requirement arises,” Singh said.

    On the request of Singhal’s counsel for her medical check-up, the court said this can be done by a jail doctor, Singh claimed.

    “We will seek the court’s permission to interrogate her in jail as it seems that there is a larger conspiracy. Examination of the digital devices of the officer is being conducted. The investigation is in a crucial stage with the emergence of new evidence in the case,” the ED counsel said.

    Singhal’s chartered accountant Suman Kumar was earlier sent to judicial custody by the court of PMLA in connection with the money laundering case.

    Kumar was also in the custody of the Enforcement Directorate for 13 days.

    The 44-year-old IAS officer was suspended by the Jharkhand government on May 12 as part of the procedure undertaken, in case of a government servant being arrested in a criminal case, within 24 hours of the receipt of information.

    Singhal, who served as the state mining department secretary, was arrested on the previous day by the ED.

    The agency had produced her before the special PMLA court which remanded her in the ED custody for five days from May 12, and later extended twice till Wednesday.

    Based on the “incriminating materials” seized during searches, several suspected persons, including district mining officers, have been called for questioning.

    Earlier, the agency had informed the court that the digital devices of both Singhal and her CA, which were seized, had been sent to the Central Forensic Science Laboratory.

    ED is also examining all details related to Pulse Hospital, allegedly owned by the bureaucrat and her family, the construction of the facility, purchase of equipment as it is suspected that the medical facility was used to “launder” money.

    She was arrested in the money laundering case linked to alleged embezzlement of MGNREGA funds and some other suspicious financial transactions after the ED raided her premises on May 6 along with that of her businessman husband Abhishek Jha, the chartered accountant and others.

    The Mahatma Gandhi National Rural Employment Guarantee Act 2005 (MGNREGA) is aimed at enhancing the livelihood security of households in rural areas of the country by providing at least 100 days of guaranteed wage employment in a financial year.

    Suman Kumar was arrested following the seizure of more than Rs 17.79 crore in cash allegedly from his residential and office premises.

  • Sukhbir Singh Badal alleges embezzlement of MGNREGA funds by Congress leaders

    By PTI

    LUDHIANA: Shiromani Akali Dal (SAD) chief Sukhbir Singh Badal accused Congress leaders on Sunday of misappropriating funds of rural employment guarantee scheme MGNREGA in Punjab and said if the SAD-BSP is voted to power in the 2022 state Assembly polls, it would order a probe into it.

    “Congress leaders misappropriated MGNREGA funds to the tune of thousands of crores by indulging in bogus billing as well as by overcharging for tiles, pavers and other construction work,” Badal said while addressing a gathering here.

    He alleged that Congress leaders had opened their own tile and paver factories and were supplying sub-standard material for use in government works.

    “All such misdeeds will be probed and corruption cases will be registered against the guilty,” the former Punjab deputy chief minister added.

    ​ALSO READ | Channi government has instructed Punjab DGP to frame Badal family in sacrilege case: Sukhbir Badal

    Badal said he is also receiving complaints that grain markets in Punjab were closed prematurely when the paddy crop was still not harvested across the state.

    “This is being done under pressure from the Centre,” he said, adding that now, the farmers would be forced to sell short.

    Badal also highlighted how the government is totally “oblivious” to the spread of dengue in the state.

    He said the number of dengue cases has crossed the 20,000 mark in Punjab but nothing is being done to control the spread of the vector-borne disease.

    “The government is behaving in the same fashion as it did during the COVID-19 pandemic, which claimed the lives of more than 17,000 Punjabis,” Badal said.

    ​ALSO READ | Cracks in Badal clan? Upset over ‘neglect’, brother-in-law blanks out SAD president 

    Slamming the Aam Aadmi Party (AAP), he said its convenor and Delhi Chief Minister Arvind Kejriwal is trying to “fool” Punjabis in the same manner as was done by former Punjab chief minister Amarinder Singh.

    “Kejriwal descends on Punjab every fortnight to proclaim a guarantee. It seems that he does not trust anyone in the state unit (of the AAP) to stand by the guarantee and never mind the fact that he has also not been able to fulfil any of the promises made to the people of Delhi,” the SAD leader said.

    “I am touring the state and I feel that the public sentiment is in favour of the SAD. People want to teach a lesson to the corrupt and scam-ridden Congress government and they feel that the AAP stands only for disruptive politics. People will vote for the SAD for all-round development,” he added.

    Badal campaigned for the SAD-BSP candidate from the Gill constituency, Darshan Singh Shivalik.

    The Punjab Assembly polls are scheduled to be held early next year.

  • Didi Bagia Yojana: Creating ‘Nursery Entrepreneurs’ in rural Jharkhand

    Express News Service
    RANCHI: In a first of its kind initiative towards women empowerment in Jharkhand, ‘Nursery Entrepreneurs’ are being created by providing proper training to women Self Help Group (SHG) under ‘Didi Bagia Yojana’ in rural areas of the state.

    The plants produced by these SHGs will cater to the requirement of various plantation schemes launched in Jharkhand to create jobs for the migrants who returned home during the lockdown.

    Officials claimed that more than 235 nurseries have already been established in different districts of Jharkhand, each having 10-15 thousand plants. The scheme has been conceptualized by Rural Development Department by convergence of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and Jharkhand State Livelihood Promotion Society (JSLPS) under which the women entrepreneurs will also get man-days for the work done by them in their nurseries.

    “Didi Bagiya Yojana is an innovative initiative of Rural Development Department, under which, SHGs are being encouraged to become nursery entrepreneurs. With this initiative, training and technical help is being provided for establishing and operating nurseries,” said JSLPS CEO Nancy Sahay.

    The initiative will ensure additional income to the SHG women, she added.

    The CEO further added that as many as 235 nurseries under the scheme have already been established and are expected to produce more than 25 lakh saplings next year making the state self reliant in terms of saplings. So far, the saplings being planted under various schemes of MGNREGA is being procured from outside, she added.

    “With this initiative, the saplings produced by SGH women will be purchased directly for plantation under MGNREGA,” said the CEO.

    Pushpa Devi, 39, one of the beneficiaries under this scheme, said is preparing more than 10,000 saplings in her nursery after getting training from JSLPS.

    “This is beneficial in both ways as we are getting paid for the work done in our own nurseries. Secondly, we will also be making money by selling each of the saplings for Rs 80 to the state government once it is ready,” said Pushpa Devi from Guphu village of Khunti.

    Mainly, she is preparing saplings of Seasam, Mahogany, Gamhar and mango, which is required for plantation under ‘Birsa Harit Gram Yojana’ of MGNREGA launched last year. Under ‘Birsa Harit Gram Yojana’ a total of 192 saplings in each acre of land is planted.

    According to officials, financial support for the ‘Didi Bagia Yojana’ will be provided under MGNREGA for the next one and a half years, which includes materials required for setting up the nursery. Therefore, all the saplings prepared in these nurseries will be given primarily for MGNREGA schemes till financial support is being provided, they said.

  • Second wave impact sends MGNREGA demand zooming again

    Express News Service
    NEW DELHI: The government’s flagship rural employment guarantee scheme, which has helped haul up rural wages and neutralise lockdown-induced consumption shock during the pandemic year, is being put to the test again as the second Covid wave washes over the hinterlands.

    Having acted as a saviour for many who lost regular work during the peak months of the first wave and its aftermath, demand for work under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) had fallen in March. April and May, however, have seen a rise in this figure with 3.52 crore and 3.61 crore individuals, respectively, demanding work under the scheme. Those demanding MGNREGA work had declined from 3.65 crore in February to 3.36 crore in March, indicating that workers were finding employment in a recovering economy. Lockdowns enforced to contain the second wave have revered this trend. While April has seen a sharp 98 per cent rise year-on-year, May figures were lower than during May 2020 (4.8 crore), when the most stringent national lockdown had been in effect, data from the MGNREGA portal showed.

    While a substantial number of people seek work under the scheme, there is a large demand-supply gap. In May, employment was provided to 1.6 crore households while 2.5 crore had demanded work. During the same month of the previous year, employment was provided to 3.04 crore households while 3.43 crore had demanded work.

    A rising trend in demand for rural employment is also an indicator of reverse migration and proportionate labour shortages in industrial units, both in organised and small-scale sectors.

    Economists say that while the heavy lifting was being done by the rural economy to put the economy back on track last year, this was due to the front-loading of government expenditure, a favourable start to the monsoon, an early onset of the summer sowing season, and rural wages touching a record high under MGNREGA. 

    But this year could be different.

    “Covid 1.0 was largely an urban phenomenon, despite the large-scale reverse labour migration. What saved the rural areas during the first wave was the timely arrangements the state governments had put up to quarantine migrant labourers before letting them enter their homes and intermingle with the local population. This prevented the spread of the virus in rural areas, therefore production activities and, in turn, rural consumption largely remained unimpacted,” explained Sunil Kumar Sinha, principal economist, Ind-Ra.

    This time, even if agricultural income remains intact, there is a strong likelihood that the expenditure behaviour of rural households will not be the same as during FY21. The slowdown in non-agricultural activities will have a serious impact on rural demand, since non-agricultural income constitutes nearly two-thirds of rural income.

    Further, if they are forced to take on debt to meet out-of-pocket health expenses, it can be more damaging than other types of household debt. “Even the employment offered under MGNREGA may be less effective, if family breadwinners fall to Covid. Focus has to be on strengthening the ongoing vaccination drive,” Sinha said. 

    In such a scenario, households would curtail non-essential expenditure, he noted, and demand for FMCG products, automobiles (especially tractors), and two-wheelers will continue to suffer.

    According to Sonal Verma and Aurodeep Nandi, economists at Nomura, hiring has increased under the rural guarantee scheme but it provides only subsistence wages. 

    The real rural wage growth has averaged near zero in FY21. 

  • Chhattisgarh creates new record, provides 16.07 crore jobs under MNREGA

    Express News Service
    RAIPUR: Chhattisgarh yet again emerged as the best-performing state in the country in providing jobs under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

    Setting a new record of sorts, the state has also achieved over 107 percent of the given target during the current financial year 2020-21.

    According to the released official data, Chhattisgarh has so far created over 16.07 crore jobs as against the target of 15 crore man-days of employment.

    “Chhattisgarh created a new record of providing employment for the highest number of man-days under the MNREGA in the current financial year. The achievement has played a significant role in reviving the rural economy keeping it robust during the Covid-19 pandemic. The state has topped having achieved 107 percent of the target so far,” a government spokesperson said.

    West Bengal stood at second position with 105 percent followed by Assam and Bihar each at 104 percent and Odisha at 103 percent of the given target.