MNREGA

THE government has linked the wages paid under the Mahatma Gandhi National Rural Employment Guarantee Act to inflation from January 1. This will raise the wages paid under the Act — Rs 100 a day at present — by 17 to 30 per cent. Accordingly, the government’s spending on this national programme will go up from the present Rs 40,100 crore a year. The cash-strapped government has resisted Congress president Sonia Gandhi’s pressure for aligning the NAREGA payments with minimum wages. The government cannot afford to make a commitment it cannot keep.
Passed in 2005, the landmark legislation initially covered 200 districts and was extended to all 593 districts in the country in 2008. It serves the twin purpose of undertaking measures like flood control, water conservation etc and providing guaranteed employment for 100 days in a year, or unemployment allowance if no work is given, to a rural adult with a job card. NAREGA, as the scheme is popularly called, has raised rural incomes, checked migration from villages and promoted inclusive growth, and also contributed to the Congress’ return to power.
The scheme has faced problems like delayed payments, resistance to the issue of jobs cards and fudging of records, but it has brought in transparency and accountability in providing entitlements to the rural poor through a bottom-up approach in a system notorious for leakages. The unemployment allowance results from an administrative failure and the amount paid is deducted from the pay of the erring officials. All wage payments are supposed to be made through banks and post offices. The administrative costs cannot exceed 6 per cent of the amount spent. The entire expenditure on works and workers is put on the NAREGA website. Details of works undertaken and material purchased are provided on the walls of panchayat buildings. Rajasthan has led the states in NAREGA implementation, while Punjab and Haryana have lagged behind. But awareness about the scheme is spreading and workers are getting organised to demand their entitlements from reluctant state governments.