21-December-2024-Editorial

CHALLENGES IN THE IMPLEMENTATION OF MGNREGS AND RECOMMENDATIONS FOR REFORM

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is a flagship program launched in 2005 to provide livelihood security by guaranteeing 100 days of unskilled manual work annually to rural households.

Despite its successes, various challenges hinder its effective implementation. Recently, the Parliamentary Standing Committee (PSC) on Rural Development and Panchayati Raj highlighted key issues with MGNREGS, particularly its inability to align with inflation and proposed several reforms.

Challenges in Implementation

Wages Not Aligned with Inflation

• MGNREGS wages have not increased proportionately with inflation, reducing the purchasing power of rural workers.
• This wage stagnation discourages workers from utilizing the full 100 days of employment guaranteed under the scheme.

Insufficient Workdays

• The 100-day work limit is often inadequate, especially in situations such as natural disasters or during economic recovery periods like the post-pandemic phase.

Revision of Permissible Works

• The list of approved works under MGNREGS does not always cater to regional priorities such as flood protection or land erosion control.
• Limited updates to permissible works reduce the scheme’s effectiveness in addressing local issues.

Delayed Wage Payments

• Payment delays are frequently caused by problems with Aadhaar-linked payment systems, inactive Aadhaar accounts, or frozen bank accounts.
• Technological and infrastructure issues often leave vulnerable workers without timely payments.

Non-payment of Delay Compensation

• Although beneficiaries are entitled to compensation for delayed wages, most workers do not receive this benefit, violating scheme provisions.

Unemployment Allowance

• Workers who do not receive work within 15 days of application are eligible for unemployment allowance. However, this allowance is rarely paid, and when provided, the amounts are meager.

Weak Social Audits

• Gram Sabhas are required to conduct social audits for all projects, but implementation remains weak. In 2020-21, only about 29,600 Gram Panchayats conducted at least one social audit.

Lack of Ombudsman

• The ombudsman system meant to address grievances is underutilized, with only 263 of the 715 sanctioned posts being filled.

Recommendations for Reform

Revision of Wage Rates

• Wages should be adjusted based on a relevant inflation index to reflect the rising cost of living in rural areas.
• The base year for wage calculations (currently 2009-10) should be updated to align with current economic conditions.

Increase in Workdays

• The PSC has suggested increasing the guaranteed workdays under MGNREGS from 100 to 150 to better address rural employment needs.

Streamlined Payment Systems

• Alternative payment systems should be maintained alongside Aadhaar-based systems to ensure uninterrupted wage disbursement.
• Bureaucratic hurdles in payment processing must be minimized for timely wage delivery.

Awareness and Training for NMMS

• Awareness campaigns and training should be conducted to help beneficiaries use the National Mobile Monitoring System (NMMS), which tracks attendance and work progress.
• Alternative attendance methods should be retained to prevent exclusion due to technological issues.

Sufficient Financial Allocations

• Adequate budgetary provisions should be made to ensure the scheme’s effectiveness in addressing rural livelihood needs.

Updating the Permissible Works List

• The work categories under MGNREGS should be revised periodically to address emerging rural challenges such as climate change impacts and disaster resilience.

Strengthening Social Audits

• Social audits should be conducted regularly and monitored to ensure transparency and accountability in the scheme’s implementation.

Appointment of Ombudsmen

• The government should expedite the appointment of ombudsmen to address grievances and improve accountability in the system.

Key Insights

Inflation and Wages

• MGNREGS wages are notified based on the Consumer Price Index for Agricultural Labourers (CPI-AL).
• Experts like the Dr. Anoop Satpathy Committee (2019) recommended setting MGNREGS wages at ₹375 per day, while the Dr. Nagesh Singh Committee (2017) suggested indexing wages to the Consumer Price Index (CPI) Rural.

Current Wage Trends

• In the financial year 2024-25, the average daily wage under MGNREGS increased by ₹28 across India, marking a 2%-10% rise compared to the previous year.

About the Parliamentary Standing Committee on Rural Development & Panchayati Raj

Formation and Jurisdiction

• Established on August 5, 2004, to oversee rural development and Panchayati Raj.
• Covers the Ministry of Rural Development and Ministry of Panchayati Raj.

Composition and Tenure

• Comprises 31 members: 21 from Lok Sabha and 10 from Rajya Sabha.
• Members serve for a term of one year.

Functions

• Examines grant demands, bills, and policies.
• Reviews annual reports and conducts detailed studies on issues related to rural development.

Conclusion

The challenges identified by the Parliamentary Standing Committee highlight critical gaps in the implementation of MGNREGS. Reforms like revising wages, increasing workdays, and streamlining payment processes can significantly enhance the scheme’s effectiveness. By addressing these issues, MGNREGS can continue to play a pivotal role in improving rural livelihoods and fostering inclusive development.