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.