LibTech India Report on MNREGA
Kartavya Desk Staff
Syllabus: Government Schemes
Source: TH
Context: A LibTech India report on MGNREGA for FY 2024–25 highlights a stark mismatch between rising registrations (increase by 8.6%) and declining employment delivery (decline by 7.1%), mainly due to delayed payments and budget shortfalls.
About MGNREGA:
• What it is: A social security and livelihood assurance program guaranteeing 100 days of wage employment to rural households.
• Launched in: 2005 under the Mahatma Gandhi National Rural Employment Guarantee Act.
• Ministry: Ministry of Rural Development.
• Objective: Enhance livelihood security by providing employment in unskilled manual labour and building rural assets.
• Key Features: Demand-driven, legal entitlement to work, time-bound wage payment (within 15 days), compensation for delays, emphasis on transparency via MIS and social audits.
Key Data on MGNREGS:
• Registrations: Increased from 13.80 crore (FY24) to 14.98 crore (FY25), a rise of 8.6%.
• Employment Delivery: Dropped by 7.1%; only 7% of households got 100 days of work.
• Person-days: Fell from 52.42 to 50.18 days per household (↓4.3%).
• Fund Utilisation: ₹82,963 crore spent (106% of ₹86,000 crore budgeted).
• State Trends: Decline in Odisha (−34.8%), TN (−25.1%), Rajasthan (−15.9%). Increase in Maharashtra (+39.7%), Bihar (+13.3%).
About MGNREGA Wage Payment System:
• Stage 1 (State): Must complete muster roll, measurement, wage list, and FTO generation in 8 days.
• Stage 2 (Centre): Central government processes FTO and credits wages within 7 days post Stage 1.
• Formula for Delay Compensation: 0.05% of wage/day beyond 15 days from muster roll completion.
• Payment Types: Aadhaar-based (APBS): Routed via NPCI mapper, prone to rejections if Aadhaar-bank mapping fails. Account-based: Direct to bank account, easier resolution of errors.
• Aadhaar-based (APBS): Routed via NPCI mapper, prone to rejections if Aadhaar-bank mapping fails.
• Account-based: Direct to bank account, easier resolution of errors.
• LibTech 2021 Data: 71% Stage 2 payments were delayed. SC: 80% payments in 15 days, ST: 63%, Others: only 51%. Chhattisgarh had highest rejection (11.4%), affecting 21,537 job cards.
• 71% Stage 2 payments were delayed.
• SC: 80% payments in 15 days, ST: 63%, Others: only 51%.
• Chhattisgarh had highest rejection (11.4%), affecting 21,537 job cards.
Issues Surrounding MGNREGA:
• Delayed Wage Payments: Workers are not getting paid on time, which goes against the law. A report shows 71% of central government payments were delayed.
• Lack of Funds: The government gave ₹86,000 crore, but this is not enough as more people are asking for work.
• Caste-based Payment Delays: Payments are being split by caste. SC/ST workers are paid first, while others have to wait longer.
• Payment Failures: Over ₹4 crore worth of payments failed, mainly due to Aadhaar-related technical problems.
• Low Compensation for Delays: Even when payments are late, workers rarely get compensation. Only 3.76% of dues were paid.
Way Ahead:
• Give More Funds: Increase the budget to ₹1.5–2 lakh crore to meet rising demand for work.
• Simplify the Payment System: Use simple bank transfers instead of Aadhaar-based payments to avoid delays and confusion.
• Ensure Timely Compensation: Automatically pay compensation to workers if their wages are delayed.
• Improve Monitoring: Use real-time tracking systems to check payment status and fix problems faster.
• Treat All Workers Equally: Stop separating payments based on caste. All workers should be treated the same under the law.
Conclusion:
Despite its shortcomings, MGNREGA remains a cornerstone of rural resilience, particularly post-COVID. Addressing payment delays, ensuring adequate funding, and simplifying systems are essential to uphold its constitutional promise of livelihood with dignity.