The National Rural Employment Guarantee Act of 2005, subsequently renamed the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), is a labor law and social security initiative in India designed to ensure the 'right to work.' The primary objective is to bolster livelihood security in rural regions by offering a minimum of 100 days of wage employment per financial year to households whose adult members willingly engage in unskilled manual labor. MGNREGA has generated more than 100 crore person days of employment in the year 2020-21. The MGNREGA works in convergence with Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), Integrated Watershed Management Programme (IWMP) and Command Area and Water Management (CAD & WM) schemes for better outcomes of the water conservation and water harvesting measures.

Source: MGNREGA UP

Mahatma Gandhi Rural Employment Guarantee Act MGNREGA UPSC is an important topic of the UPSC Syllabus. Questions related to this section are asked constantly in both UPSC Prelims and UPSC mains examinations.

An Overview of Mahatma Gandhi National Rural Employment Guarantee Act 2005

Background of MGNREGA

• This scheme took its existence from the pilot scheme launched by the P.V Narashima Rao government for generating employment in rural areas in the year 1991.
• The aim of the MGNREGA was employment generation for agricultural labour, infrastructure development and enhanced food security for the rural population.
• The National Rural Employment Guarantee Act was notified in 2005, and the name of the scheme was changed to Mahatma Gandhi Rural Employment Guarantee Act (MGNREGA).

Objectives of the MGNREGA Scheme

The Mahatma Gandhi National Rural Employment Guarantee Act aims at:

• Generating guaranteed 100 days of employment for the rural unskilled labour.
• Strengthening livelihood of rural poor by providing economic security.
• Reducing migration to urban areas by providing adequate facilities in rural areas.

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Features of the Mahatma Gandhi National Rural Employment Guarantee Act 2005

• It focuses on rural connectivity, providing irrigation facilities in rural areas.
• MGNREGA Scheme focuses on creating durable assets and strengthening the livelihood resource base of the rural poor.
• The schemes contain adequate provisions for ensuring transparency and accountability at all levels of implementation.
• The programme Officer and Gram Panchayat can direct any person under MGNREGA Scheme to do work of any type pennissible under the scheme.
• The labourers are not paid less than the wage rate.
• The works taken up under the scheme shall only be in rural areas.
• There is provision for regular inspection and supervision of works taken up under the Scheme.

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Role of Stakeholders in MGNREGA

Role of Gram Sabha

• Determines the order of priority of works by observing potential of the local area, its needs, and local resources.
• Responsible for monitoring the execution of works within the Gram Panchayat.
• Act as a forum for social audits.
• Provides a platform to resolve worker’s queries.

Roles of Gram Panchayat

• The applications for MGNREGA registration are given in Gram Panchayats of the village.
• It is the duty of the Gram Panchayat to register the household and verify registration applications.
• It also issues a job card that contains details of adult members of the household along with their photographs.
• It maintains the documents related to the scheme containing particulars of job cards and passbooks issued.
• It supplies information to the concerned Programme Officer.
• It may direct the Programme Officer to remove the name of the applicant and return the job card if faulty information is found.
• It is responsible for timely allocation of work within fifteen days of submitting the application.
• It is responsible for the identification, planning and determining order of priority of works.

Responsibilities of State Government

• The Annual Report is submitted to the State Council by the District Programme Coordinator concerning issues of unemployment and allowances payment.
• State Government shall arrange for hospitalisation including accommodation, treatment, medicines and payment of daily allowance to any injured worker.
• The State Government prescribes the portion of the wages that may be paid in cash to the labourers on a daily basis during the period of employment.
• Compensation in cases of injury or death is determined by the State Government from the State Employment Guarantee Fund (SEGF).
• It sets up a State level MGNREGA implementation agency along with State level MGNREGA social audit agency.
• It is also responsible for the establishment of the State Employment Guarantee Council (SEGC).
• The state government frames rules and notify the Rural Employment Guarantee Scheme for the State.

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Eligibility for Availing MGNREGA Benefits

• One must be an Indian citizen to be eligible for NREGA benefits.
• The job applicant was 18 years old at the time of application.
• The applicant must be a local family member (i.e. application must be made with local Gram Panchayat).
• The applicant is expected to volunteer for unskilled labor.

Funding Status of MGNREGA

• According to its own financial reporting, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) plan has a negative net balance of Rs 8,686 crore.
• For the fiscal year 2021-22, the Centre allocated 73,000 crore during the Budget Estimate stage for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA).
• The allocated budget for fiscal year 2020-21 is 34% lower than the revised estimate of 1,11,500 crore. As of October 29, total spending, including payments due, had topped 79,810 crore, putting the scheme in the red.
• Twenty-one states have already reported a negative net balance, with the worst performers being Andhra Pradesh, Tamil Nadu, and West Bengal.

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Issues with the Mahatma Gandhi National Rural Employment Guarantee Act MGNREGA

• Data on the impact of productive assets: The government does not keep track of whether a building has contributed to water conservation. In addition, no government data exists on the impact of asset accumulation on groundwater levels, livelihoods, or other issues.
• Poor maintenance: Many of the structures developed during the MGNREGA program have become obsolete due to poor maintenance. Simply put, time, energy, and resources have been squandered.
• Inadequate funds: There has been a huge surge in demand for MGNREGA projects during pandemics. The government, on the other hand, has not distributed funds in a proportionate manner.
  • Rs 73,000 crores have been set aside for the fiscal year 2021-22.
  • It is greater than the Rs. 61,500 crores budgeted for 2020-21. The revised estimate of Rs.1,11,500 crores, on the other hand, is 34.5 percent lower.
• Inadequate help: With the unemployment rate at a 45-year high of 6%, offering only 100 days of work is not enough.
• Wage rate is absurdly low: in at least 17 of the 21 major states, MNREGA compensation rates are currently lower than the state minimum wage for agriculture. Between 23 percent and 33 percent of the minimum wage is the difference.
  • According to data from the National Sample Survey Office, the average daily wage for general agricultural laborers in 2017 was Rs. 264.05 for males and Rs. 205.32 for women (NSSO).
  • Workers have lost interest in working on MGNREGA projects as a result of the extremely low pay rates, allowing contractors and intermediaries to take control locally.
• Payment delays: The majority of states have failed to pay wages within 15 days, as required under MGNREGA. Workers aren’t paid if their paychecks aren’t delivered on time.
  • As a result, the system has evolved into a demand-driven paradigm, and workers are becoming dissatisfied with their jobs.
  • Postponed MGNREGA wage payments were described as “a clear constitutional breach done by the State” and “a new species of beggar” by the Supreme Court in a 2016 order.
• PRI’s function is ineffective: Gram panchayats are unable to fully and efficiently implement this Act due to their lack of autonomy.
  • There are numerous projects that have yet to be completed.
  • Projects under the MGNREGA have been delayed, and inspections have been inconsistent. Under MGNREGA, there are also issues with work quality and asset development.

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Important Facts about MGNREGA for UPSC

• The MNREGA scheme is monitored by the Ministry of Rural Development (MRD), Govt of India.
• The Ministry of Rural Development (MRD), Govt of India looks after the entire implementation of this scheme while working in close association with state governments..
• The registration made under MGNREGA cannot be less than five years, and may be renewed from time to time.
• Every adult member of a registered household whose name appears in the job card shall be entitled to apply for unskilled manual work under the Scheme.
• A maximum of one hundred days employment per household is given in a financial year for a person.
• At least one-third of the beneficiaries shall be women who have registered and requested for work under this Act.
• Applications for work must be for at least fourteen days of continuous work.
• If work is provided within the Block instead of 5Km radius of the village then the labourers shall be paid ten per cent of the wage rate as extra wages to meet additional transportation and living expenses.
• A period of employment shall ordinarily be at least fourteen days continuously with not more than six days in a week.
• A person is entitled to seek medical treatment if he encounters an injury while working under this MGNREGA scheme.
• The labourers are entitled to receive payment of compensation as per the provisions of the Payment of Wages Act, if payment is not received timely.

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