MGNREGS: Expert Criticism and Worker Struggles Highlight Policy Gaps

Keywords: MGNREGS, Jean Dreze, Wage Delays, Corruption, Aadhaar, NMMS, Rural Employment, Worker Protests.

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), often described as a lifeline for India’s rural workforce, faces stark challenges that contrast sharply with claims made by the Central Government. At a press conference on December 4, 2024, renowned economist Jean Dreze, along with other stakeholders, expressed deep concerns about the scheme’s weakening and its impact on workers.

Discrepancies in Budget and Wages

During the ongoing winter session of Parliament, Union Minister Chandrashekhar Pemmasani claimed a significant annual increase of ₹20,000 crore in the MGNREGS budget. However, Dreze countered this, calling the claims misleading.

Dreze highlighted delays in wage payments, undermining the scheme’s mandate of providing timely relief. As per the MGNREGA Act, wages must be paid within 15 days of task completion. While the Centre cited prompt generation of Fund Transfer Orders (FTOs) as evidence of timely payments, Dreze pointed out that this did not account for actual crediting of wages into workers’ accounts. Barely half of the workers receive payments on time, he said, reflecting inefficiencies in the system.

Corruption Allegations and Fund Suspension

Union Rural Development Minister Shivraj Singh Chouhan defended the Centre’s decision to stall MGNREGS funds to West Bengal since December 2021, citing large-scale corruption in the scheme’s implementation. However, Dreze and other experts termed the indefinite suspension of funds as a violation of the Act, which does not permit denial of wages to workers due to irregularities.

Activist Dipyaman Adhikary of Paschim Banga Khet Majoor Samity (PBKMS) further refuted corruption claims, stating that no official accountability or penalties had been enforced. Adhikary demanded transparency from the government, urging it to make the investigation findings public.

Technological Barriers and Worker Exclusion

Technological interventions in MGNREGS, such as the National Mobile Monitoring System (NMMS) for online attendance and the Aadhaar-Based Payment System (ABPS), have compounded the challenges faced by workers.

Chakradhar Buddha from LibTech noted that over 90 million workers were deleted in 2022-23, with an additional 9.1 million workers excluded in 2024-25 for failing to comply with ABPS requirements. He emphasized that this was against the spirit of the Act and called for reinstating these workers.

Worker representatives like Afsana Khan from Jharkhand shared firsthand experiences of delays in wages and hardships caused by mandatory digital systems, which discourage rural workers from participating in the scheme.

Budget Cuts and Worker Protests

Dreze and other experts identified budget reductions as a primary cause of delayed wage payments. The scheme’s financial allocations often carry forward into subsequent financial years, further disrupting timely payments.

To address these systemic issues, NREGA workers announced a two-day protest at Jantar Mantar starting December 5, demanding immediate corrective measures to restore MGNREGS’ effectiveness and uphold its foundational promise of livelihood security.

Conclusion

The Centre’s portrayal of MGNREGS as a robust safety net contrasts sharply with on-ground realities highlighted by experts and workers. Delays in wage payments, technological barriers, exclusion of millions of workers, and allegations of corruption are undermining the scheme’s effectiveness. The protests by workers reflect growing dissatisfaction, urging the government to address these concerns to safeguard the rural lifeline envisioned by the Act.

Stay tuned for live updates on the rupee’s movement and real-time business news on Kanishk Social Media—your go-to source for comprehensive stock market and legal news.