Underestimated utility: lack of funds on rural employment scheme

that as many 21 out of 35 states/UTs have utilized more than 100% of their allocated funds as on 29 October Down Mahatma Gandhi Rural Employment Guarantee Scheme (MNREGA) Not surprising for FY2021-22. In the last year, the allocation for MGNREGA was increased by Rs 50,000 crore to meet the demand for work, with the revised estimate for the scheme spending up to Rs 1,11,500 crore. MGNREGA was a life saver for the poor, especially migrant labourers, after the sudden lockdown announced by the central government. In this year’s budget, the finance minister allocated ₹73,000 crore for the scheme, higher than the total number in the previous year’s budget allocation, but it was only 2.1% of the budget expenditure, the largest in those terms in previous years. The outlay was low. six years. By the end of October, Kerala, Tamil Nadu, Andhra Pradesh and Himachal Pradesh had utilized over 130 per cent of their respective allocations for the scheme, indicating that rural workers are dependent on the scheme even in relatively better-off states. Clearly, the central government has underestimated the demand for work under the scheme, even though it involves hard and menial labour, accounting for a large part of rural employment, at a time when the economy has been hit hard due to the effects of the pandemic. had suffered contractions. .

Responding to a report, officials from the Ministry of Rural Development accused states of “artificially” creating demand, but this has not surfaced from on-the-ground reports indicating increased demand for work and wages in rural India; Civil society activists claim that some workers have been turned back by the authorities despite their demand for work due to paucity of funds. The central government must ensure that the allocation is sufficient to meet the demand for salary payments and for the remaining months of this financial year. The usefulness of MGNREGA as a crisis management scheme has never been questioned. From serving as an effective alternative in the absence of crop and weather insurance in assisting poor farming families and providing wages during agrarian distress, to an opportunity for employment during the economic crisis induced by the pandemic and response. MNREGA has come out in me. To be a salve for farm laborers and laborers. Delays in wage payments can also lead to a fall in rural consumption, which plays an important role in stimulating the economy. Apart from the usefulness of the plan in crisis, it also has the potential, if the works are upgraded suitably, to continue improving rural development and infrastructure. The central government should consider this during allocation and should not be conservative in its outlay or be indifferent to the overall potential of the scheme.