Rural development ministry seeks additional Rs 25k cr for job guarantee scheme

In an indication of the rise in demand for work, the Union ministry of rural development has sought additional funds of about Rs 25,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

The ministry sought the amount from the ministry of finance, and the funds are expected to be allocated in two weeks. Once the ministry allocates the money, the same will be released to states to implement the job scheme, said an official in the rural development ministry.

In the Union budget for 2022-23, Rs 73,000 crore was allocated for the job scheme. Of this amount, about Rs 54,000 crore has been allocated to the states so far.

Under the programme, in the current fiscal, a total of 181 crore person days of work has also been generated. The total expenditure on the MGNREGA is expected to touch the last financial year's level of Rs 98,000 crore.

The latest survey report on the MGNREGA conducted by Dalberg Advisors said that in 2020-21, Rs 97,225 crore was spent on the job scheme and 389 crore person days of employment generated and 15.1 crore members of active workers engaged in the scheme.

The study found that although the job guarantee scheme has been a strong rail for rural Indian households during the Covid-19 pandemic, critical gaps continued to undermine the scheme's welfare potential.

The study report said that beneficiaries, especially women, continue to struggle to enrol in the scheme or apply for employment due to lack of awareness, complex or time-consuming processes, and limited work availability. Wages are delayed for most households, leading to additional hardships. On the administrative front, Gram Panchayats lack adequate staff strength and technical skills to seamlessly implement MGNREGA.

Bridging these gaps could improve the scheme's overall effectiveness in providing a safety net to vulnerable households and strengthening the rural economy overall.