MGNREGA

MGNREGA

Subject : Government Schemes

Context : There has been no increase in MGNREGA wages in Kerala and Lakshadweep while Meghalaya has recorded the highest increase of Rs 23, from Rs 203 in 2020-21 to Rs 226 2021-22, according to a report in the Indian Express.

Concept :

• With the exception of Meghalaya, all states and Union Territories have recorded a lower hike in MGNREGA wages, which will be effective from April 1, for 2021-2022 in comparison with the increase announced for 2020-2021.
• The budgetary allocation for the 2020-2021 financial year (FY) for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme was only increased marginally, from Rs 60,000 crore to Rs 61,500 crore.

About MGNREGA

• MGNREGA is one of the largest work guarantee programmes in the world. It is one of the core of the core scheme under Government of India.
• Objective: The primary objective of the scheme is to guarantee 100 days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work.
• Under the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, the Centre decides the state-wise wage rates for unskilled manual workers who work under the rural job guarantee scheme.
• The wage rates are fixed as per changes in the Consumer Price Index- Agriculture Labor, which reflects inflation in rural areas.
• Legal Right to Work: Unlike earlier employment guarantee schemes, the act aims at addressing the causes of chronic poverty through a rights-based framework.
• At least one-third of beneficiaries have to be women.
• Wages must be paid according to the statutory minimum wages specified for agricultural labourers in the state under the Minimum Wages Act, 1948.
• Demand-Driven Scheme: The most important part of MGNREGA’s design is its legally-backed guarantee for any rural adult to get work within 15 days of demanding it, failing which an ‘unemployment allowance’ must be given.
• This demand-driven scheme enables the self-selection of workers.
• Decentralised planning: There is an emphasis on strengthening the process of decentralisation by giving a significant role in Panchayati Raj Institutions (PRIs) in planning and implementing these works.
• The act mandates Gram sabhas to recommend the works that are to be undertaken and at least 50% of the works must be executed by them.