MGNREGA

(WORKS AND IMPACTS)

Critical Assessment.

Prepared by:
Antika Sarkar
MA (Hons.) Public Policy

CONTENTS

BACKGROUND
THE ACT
OBJECTIVES
KEY PROCESS AND FEATURES
FUNDING AND IMPACT
PRESENT SCENARIO ( case study of
Jharkhand)
CRITICISM
WAY AHEAD

BACKGROUND
The gross domestic product of the Indian
economy has approximately grown at an average
of 7% in the last two decades.
Despite having such a high average growth rate,
almost 23.6% of people live at $1.25 per day (in
purchasing power parity or PPP terms) and 59.2%
at $2 per day (in PPP terms) as per an estimate
for 2011 by the World Bank.
However, while poverty has declined in India in
the last two decades it still remains high.

THE NATIONAL RURAL EMPLOYMENT

GUARANTEE ACT, 2005
An Act to provide for the enhancement of livelihood
security of the households in rural areas of the
country by providing at least one hundred days of
guaranteed wage employment in every financial
year to every household whose adult members
volunteer to do unskilled manual work and for
matters connected therewith or incidental thereto.
The Indian Parliament passed the Mahatma Gandhi
National Rural Employment Guarantee Act on 23rd August
2005.

OBJECTIVES
Enhance livelihood security of the rural poor by
generating wage employment opportunities in
works that develop the infrastructure base of
that particular locality.
Rejuvenate natural resource base of the area
concerned.
Create a productive rural asset base.
Stimulate local economy for providing wage
employment.
Ensure women empowerment.

Key Processes
Application for job card

Selection of works
Approval of shelf of
projects

Verification
Issue of job card

Informing village PRI

Demand for employment

Acknowledgement of
demand

Preparation of estimates
And approvals

Work allocation
Maintenance of muster roll
Payment of wages

 If career is not offered within 15 times, everyday lack of

employment allocation, in money has to be salaried.
Accountability of all transaction of need of employment
allocation is of the Declares.
At least one-third of individuals to whom perform is allocated
perform have to be females.
Wages are to be compensated according to lowest income as
recommended under the Minimum Wages Act 1948 for
farming laborers in the Condition, unless the Center informs a
salary amount which will not be less than only Rs. 60/ per day
Disbursement of income has to be done on every week base
and not beyond a couple weeks.
Local Panchayat Raj Organizations, also known as PRIs have a
major part in preparing and execution.
Each region has to get ready a display of tasks

Features of MNREGA

The offered career choices are to be chosen from

the record of allowable performs .The different
groups of allowable performs are as follows:
Category: A: Public Works Relating to Natural
Resources Management
Category B : Individual Assets for Vulnerable
Sections
Category C: Common Infrastructure for NRLM
Compliant Self-Help Groups
Category D: Rural Infrastructure

 Work should normally be offered within 5 km distance

of the town or else additional income of 10% is due.
Work website features such as crche, water, shelter have
to be provided
Social Review has to be done by the local Gram Sabha.
Grievance redresser systems have to be put in position for
guaranteeing a sensitive execution procedure.
All records and information about the Program are to be
created available to any individual wanting to of acquiring
a duplicate of such information, on need and after
spending a specified fee.

60:40 ratio for wage and material cost should be

maintained at GP level for works executed by GP and for
works executed by agencies other than GP, it should be
maintained at block/intermediate panchayat level.

 The Union Budget had allocated Rs 38,500 crore

towards MGNREGA for 2016-17 (April-March),
which was enhanced by Rs 5,000 crore in the first
batch of supplementary demand for grants moved
during the monsoon session of Parliament in August.
The Narendra Modi government may spend close to
Rs 60,000 crore on the Mahatma Gandhi National
Rural Employment Guarantee Act (MGNREGA) in
the current fiscal, a record for the programme that
was a baby of the previous United Progressive
Alliance regime.
- http
://indianexpress.com/article/india/india-news-i
ndia/mgnrega-nda-government-pm-modi-employmentdays-mgnrega-3092201

IMPACT
NREGS was originally launched in February,
2006 in 200 districts and was subsequently
extended to another 130 districts in 2007-08.
Currently the scheme is in implementation in all
the 593 rural districts of the country.

CHALLENGES
Employment Crash:
(In 201415, 155 crore person-days of MGNREGA work
were generated across the country, just about half the
quantum of employment generated in 200910.)
Budget Gaps:
Delays in Wage Payments:
Shrinking Rights:
Violations of Entitlements:

THE CASE OF JHARKHAND

Between 201213 and 201415, there has been a 20%
fall in MGNREGA employment in Jharkhand.
Disruptions in Funds:
Lack of Accountability:
Shortage of Staff:
Continued Corruption:
Flaws of Financial Institutions:
Weak Grievance Redressal:
Overdependence on Technology:
Linkage with Aadhaar:

EFFORTS TOWARDS IMPROVEMENT

MGNREGASahayataKendra
Joint effort of the Jharkhand government and the
states civil society,(Kaam Mango Abhiyan carried out
in early 2014 )
Social audits in 50 gram panchayats of the state with
involvement of local activists working on MGNREGA.
Yojana Banao Abhiyan, a state-wide campaign,
conducted in JanuaryFebruary 2016.
cluster facilitation teams in 76 blocks of the state for
about three years (July 2014 to March 2017).

CONCLUSION
Need of serious attention
Independent social audit unit and draft rules for
transparency and grievance redressal,
Greater attention to design and maintenance can
go a long way towards ensuring that works rated
as good now get better.
Efforts to foster local participation, more careful
selection of works, and a better design would
ensure that the MGNREGA is effective in
supporting livelihoods.

REFERENCES:
http://www.epw.in/tags/mgnrega?0=ip_login_no_c
ache%3Dd6b8f728a90517ae20e091ff6afb494a
http://www.epw.in/journal/2016/22/perspectives/mgn
rega-crisis.html
http://164.100.129.6/netnrega/MISreport4.aspx?fi
n_year=2015-2016&rpt=RP
http://
www.epw.in/system/files/pdf/2015_50/13/MGNREG
A_Works_and_Their_Impacts.pdf
http://www.epw.in/journal/2015/13/special-articles
/mgnrega-works-and-their-impacts.html
http://www.insightsonindia.com/2016/02/08/2-critic
ally-analyse-social-economic-impact-mgnrega-ruralhouseholds/

THANK YOU!