dissertation on mgnrega

Employment Guarantee Programme and Dynamics of Rural Transformation in India pp 307–343 Cite as

The Journey of MGNREGA: Changing Approaches and Challenges

• Amita Shah 5 ,
• Aasha Kapur Mehta 6 ,
• P.K. Viswanathan 7 &
• Nicky Johnson 8  
• First Online: 09 June 2018

343 Accesses

3 Citations

Part of the book series: India Studies in Business and Economics ((ISBE))

Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS or MGNREGA) remains the most important and unique strategy for creating rural employment in India. Thereby, assessing the programme taking into the emerging context of rural India in 2015–16 as done in this chapter provides us valuable information for addressing alarming level of inequity and poverty situation in rural India. Unfortunately, lack of a rigorous analysis of the interrelationships between employment, poverty alleviation and fostering equitable development amongst the varied social groups, over time and space, has thus made it difficult to understand the developmental dynamics of MGNREGA. In this regard, this paper addresses some of the gaps observed in implementation of MGNREGS in India. The empirical analysis is based on data from the official websites of ministry of rural development, MGNREGA implementing authority, from 2006–07 to 2014–15. While the MGNREGA implemented in 2006 is a significant modification over the Employment Guarantee Programme (EGS) implemented in Maharashtra (i.e. MEGS) since early 1970s, we have also compared impacts and outcomes of the MGNREGS with that of MEGS, and provided the results in a comparative perspective. MGNREGA in its present format, though had significantly contributed towards improving the status of the rural households, the continuity of the programme in future may face several challenges. While the very nature and content of the programme had undergone significant modifications and adaptations over the past one decade of its existence, the future potential of the programme may also depend upon how its implementation process would be adapted as per the changing dynamics of rural economies, the socio-economic and demographic characteristics of the rural households.

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Performance of MGNREGA has been far from satisfactory in recent years in terms of the average number of days of employment generated per household, percentage of actual expenditure made against total funds available and the percentage of works completed (Jha and Gaiha 2012). Instances are many where the works undertaken for asset creation remained incomplete along with poor quality of such assets created (GoI 2014 ; ILO 2014 ; Drèze and Khera 2009 ).

At the all-India level, it was found that the relatively deprived social groups, STs and SCs, have been left out of the growth process and the other social groups (OSGs) perform the best. The finding on increasing disparity between the poorest and richest states was corroborated by the estimates of: (i) coefficient of variation, which increased from 17.59 to 30.78% for mean [per capita consumption expenditure]; and (ii) index of dispersion, which increased from 17.63 to 32.98% for rural mean per capita consumption across major states between 1993–94 and 2011–12 (Suryanarayana and Das).

Under MGNREGA, employment was provided to 5.62 Crore Households and it also resulted in an average increase in household income by around Rs. 6,000 per year. As part of financial inclusion, 9.29 crore bank/postal accounts are opened and the scheme also resulted in the increase of purchasing power in rural areas (Niti Aayog 2015).

Based on a study in a Gujarat village (Nana Kotda) in South Gujarat, Hirway et al. (2010) reported that the expenditure on various NREG works had generated multiplier impact on the rural economy, even though the impact was low due to the various leakages in implementation.

Ministry of Rural Development ( 2016a ).

Ministry of Rural Development ( 2016b ).

The NCAER study was quite unique in terms of its coverage and methodology adopted. It surveyed 26,000 rural households that were interviewed twice, once in 2004–05 before MGNREGA’s passage and again in 2011–12, after the programme had been extended nationwide.

The objective of this skill certification and reward scheme is to enable and mobilise a large number of Indian youth to take up outcome-based skill training and become employable and earn their livelihoods.

The ‘Make in India’ initiative launched by the Government of India to promote manufacturing in 25 sectors of the economy shall lead to job creation and consequently generate need for skilled manpower.

The surge in inflation during recent years had curtailed considerably the magnitude of real benefits to be gained from the NREG (Kannan and Jain 2013 : 51).

The MoRD moved a Cabinet note to expand the scope of MGNREGA by extending the number of annual work entitlement days from 100 to 150 in areas to be declared drought-affected by the respective state governments. This comes in the wake of a prospective monsoon failure for a second consecutive year as forecasted by India Meteorological Department (IMD). Expansion of the work entitlement days by 50 stems from the concern that there would be greater demand for wage-related work in drought-affected districts. Further, it will be applicable to only those households which complete 100 days of work.

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Gujarat Institute of Development Research, Ahmedabad, Gujarat, India

Department of Economics, Indian Institute of Public Administration, New Delhi, India

Aasha Kapur Mehta

Amrita School of Business, Amrita Vishwa Vidyapeetham (Deemed to be University), Kochi, Kerala, India

P.K. Viswanathan

Centre for Management in Agriculture (CMA), Indian Institute of Management, Ahmedabad, Gujarat, India

Nicky Johnson

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Rudra N. Mishra

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Annex 1: Total Rural Household, Total Employment/Worked in MGNREGA and MGNREGA HH as a % of Total Rural HH (2006–07 to 2014–15)

• Source Total Employment provided from MGNREGA Public Portal accessed in February, 2016 www.nrega.nic.in and Rural Households from Census India, 2011
• Note Rural Household for 9 years is calculated by calculating CAGR (Compound Annual Growth Rate)

Annex 2: Statewise Participation of Rural Households in MGNREGA Over Time (2006–07 to 2014–15)

• Source MGNREGA Public Portal accessed in February, 2016 www.nrega.nic.in
• Note Poverty Ratio 2011–12 is based on Rangarajan Committee

Annex 3: MGNREGA Households Participation Changes for the Year (2006–07 to 2010–11) and (2011–12 to 2014–15)

Annex 4: normal and drought year % deviation from normal.

• Source India Metrological Department
• Note Rainfall of Andhra Pradesh includes Coastal Andhra Pradesh + Telengana + Rayalaseema
• Rainfall of Uttar Pradesh includes East Uttar Pradesh + West Uttar Pradesh
• Rainfall of Gujarat includes Gujarat Region + Saurashtra & Kutch
• Rainfall of West Bengal includes Sub-Himalayan West Bengal + Sikkim + Gangetic West Bengal
• Rainfall of Haryana includes Chandigarh + Delhi
• Rainfall of Maharashtra includes Madhya Maharashtra + Marathwada + Vidarbha
• Rainfall of Madhya Pradesh includes East Madhya Pradesh + West Madhya Pradesh
• Rainfall of Rajasthan includes East Rajasthan + West Rajasthan
• Rainfall of Karnataka includes Coastal Karnataka + North Interior + South Interior

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Shah, A., Mehta, A.K., Viswanathan, P., Johnson, N. (2018). The Journey of MGNREGA: Changing Approaches and Challenges. In: Bhattarai, M., Viswanathan, P., Mishra, R., Bantilan, C. (eds) Employment Guarantee Programme and Dynamics of Rural Transformation in India. India Studies in Business and Economics. Springer, Singapore. https://doi.org/10.1007/978-981-10-6262-9_13

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Socio-Economic Impact of Mgnrega - A Study Undertaken among Beneficiaries of 20 Villages of Dungarpur District of Rajasthan

MGNREGA is an ambitious scheme providing employment to rural people of India. The basic aim of Mahatma Gandhi National Rural Employment Guarantee Act is to enhance livelihood security of household in rural area. By this scheme Govt. gives assurance of employment to unskilled rural laborer for 100 days. With better implementation such type of scheme may be an effective weapon to fight against poverty. It also aims at transforming the rural areas by improving the socio-economic conditions of people. Rural economy is the back-bone of Indian economic development. Providing employment to rural households will certainly boost the economy. It increases demand for goods and services. In this article an effort has been made to analyses the socio-economic impact of MGNREGA scheme on the life of beneficiaries of Dungarpur district. The findings of the study revealed that the programme has brought the change in the lives of the beneficiaries. Though it is always a debatable issue that such changes, by MGNREGA are sustainable or temporary.

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The Mahatma Gandhi National Rural Employment Guarantee Act was implemented in 2005 and Organized by Government of India. This scheme main objective to eliminate poverty and generation of income for rural peoples and household through hundred days of guaranteed employment per year. This scheme has provided social security through employment guarantee for Rural, Castes, Tribes and women in Kanyakumari district of Tamilnadu. The study found that the no. of Household registered in MGNRE scheme varied depending on how MGNRE scheme factors compared to market wages in the community, as well as local involvement of the program. The MGNRE scheme offered some basic employment for unprivileged groups. Substantial wages, opportunities for work, better implementation, utilization of fund and a greater recognition of the care giving responsibilities of women will be required for this policy to fully meet its goals in kanyakumari district. This study based on secondary data and used focus Group Methods. Mahatma Gandhi National Rural Employment Guarantee Act was enacted in September 2005. Under the Act, every rural household whose adult members volunteer to do unskilled manual work are provided social protection and livelihood security. This was made through provision of at least 100 days of guaranteed employment in a financial year. The Act was implemented in all rural districts of the State in a phased manner between February 2006 and April 2008. It aimed at empowerment of the socially disadvantaged (i.e. Women, SCs & STs). Durable assets were also created through convergence of various anti-poverty and livelihood initiatives. In case of failure in providing work in time, the Act mandates payment of unemployment allowance and compensation for delay in payment of wages. The Act also supports activities towards achieving elimination of poverty as a component of Sustainable Development Goals by the end of year 2030. The scheme was implemented on a cost sharing basis between the Government of India (GoI) and the State. The GoI had to bear all costs, except 25 per cent of the cost of material and wages for semi-skilled/ skilled workers, (ii) unemployment allowance and (iii) administrative expenses of the State Employment Guarantee Council. These components were to be borne by the State. Organizational Set Up The scheme was implemented by the Panchayati Raj and Drinking Water (PR&DW) Department. It was under the overall supervision of the Commissioner-cum-Secretary acting as the State Programme Coordinator and the State Employment Guarantee Commissioner. The Collectors who act as District Programme Coordinators (DPCs) were responsible for implementation of the scheme at district levels. Block Development Officers (BDOs)-cum-Programme Officers (POs) implemented the scheme at Panchayat Samitis (PSs) level. At the village level, it was the GPs that implemented the scheme. District Profile: Kanyakumari district is the southernmost district in Tamil Nadu state and mainland India. It stands second in terms of population density among the districts of Tamil Nadu and the second most urbanized, next only to Chennai district. It is also the richest district in Tamil Nadu in terms of per capita income, and also tops the state in Human Development Index (HDI), literacy and education. The district headquarters is Nagercoil.

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The main aim of the MGNREGA is to provide employment opportunities to the unemployed and underprivileged sections of society to help alleviate poverty and also develop the rural areas. In this context the perceptions of the rural area respondents have been collected to find out the impact of MGNREGA on rural development. Hence the data revealed that this scheme is a powerful instrument for inclusive growth in rural area through its impact on social protection, livelihood security and democratic empowerment. MGNREGS provide livelihood security for the poor through creation of durable assets, improved water security, soil conservation and higher land productivity. This scheme has had a positive impact on the standard of living of households through increase in household income by improvements in production from agriculture, and also led to major increases in wages of rural workers. Through this programme the SC, ST and especially the women along with socially excluded communities benefit from and the plans of this scheme which could be a significant indicator of poverty alleviation in rural areas.

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The Mahatma Gandhi National Rural Employment Guarantee act or (MGNREGA) was reported in India in September 2005 with a mandate to supply at least a hundred days of guaranteed wage employment in a financial year to each rural home whose members above the age of eighteen years’ volunteer to do unskilled labour-intensive work. The main focus of the act is to assist the social protection for the people living in rural India by providing employment possibilities and therefore contributing towards the overall growth of the local people. The present study was attempted to figure out the effect of MGNREGA on the overall economic and social development of beneficiaries in the Chikkaballapura district of Karnataka. The study was carried out in the Chintamani blocks of the Mindigal panchayat area of the Chikkaballapura with beneficiaries as respondents. The results found the MGNREGA has extensively enhanced their social and economic safety.

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