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20th May 2025 (13 Topics)

Mismatch between MGNREGS coverage, delivery: Report

Context

Despite a rise in registrations, the actual delivery of promised employment under MGNREGS has declined, exposing gaps in the scheme’s implementation, as per a recent report.

Major Issues Identified in the Report

  • Fall in Person Days Generated: States like Odisha (–34.8%), Tamil Nadu (–25.1%), and Rajasthan (–15.9%) saw significant drops in person-days. Only a few like Maharashtra (+39.7%) and Bihar (+13.3%) registered increases. Regional disparity in employment generation continues to be a major issue.
  • Inadequate Budget Allocation: Policy advocates recommended Rs 2.64 lakh crore in 2022–23. But allocation for FY 2024–25 was only Rs 86,000 crore, with no mid-year revisions, despite inflation and rising demand. This mismatch severely limits job provision.
  • Delayed Wage Payments: Across many states, extraordinary delays in wage disbursal have demotivated workers. This affects trust in the system and discourages participation.
    • Payment delays violate the MGNREGA Act itself, which mandates wage payment within 15 days.
  • Deletions of Job Cards: Between 2022–24 7.8 crore job cards deleted, but only 1.92 crore added. FY 2024–25 shows some improvement, 99 lakh deletions, but 2.22 crore new additions — first time additions exceeded deletions.

About MGNREGS

  • The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is one of India’s most significant welfare programmes.
  • It legally guarantees 100 days of wage employment per year to every rural household whose adult members are willing to do unskilled manual work.
  • It is a demand driven wage employment Scheme. 
  • Beneficiary: Mahatma Gandhi National Rural Employment Guarantee Act, 2005, requires that priority be given to women in such a way that at least one-third of the beneficiaries be women.
  • Funding: The central government provides 100 percent funding for wages for the unskilled manual work, and covers 75 percent of the material cost. Twenty-five percent of the material cost is borne by state governments.
  • It has served as a social safety net, especially during economic shocks like droughts, pandemics, or job losses in the informal sector.
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