MAHATMA GANDHI
NATIONAL RURAL EMPLOYMENT GAURANTEE ACT
– A REVIEW
(This article was published in the "Kurukshtra, Jan 2011" - A Journal of Rural Development published by Govt. of India)
(This article was published in the "Kurukshtra, Jan 2011" - A Journal of Rural Development published by Govt. of India)
-Dr. S. Vijay Kumar
Despite decades of planned development and poverty eradication programs at the national and state levels, poverty continues to persist in large scale in India
The salient features of MGNREGA are:
a) Adult members of a rural household may apply for employment if they are willing to do unskilled manual work. At least 100 days work will be provided per household per annum.
b) Such a household will have to apply for registration to the local Gram Panchayat in writing or orally.
c) The Gram Panchayat after due verification will issue a Job Card to the household. The Job Card will bear the photograph of all adult members of the household willing to work under NREGA.
d) All adults who have completed 18 years of age are eligible to work.
e) Employment will be provided within 15 days of application for work.
f) Men and women will be paid equal wages and preference will be given to women in each work.
g) If employment is not provided within 15 days, daily unemployment allowance in cash has to be paid. Liability of payment of unemployment allowance is of the States.
h) At least one-third of persons to whom work is allotted have to be women.
i) Disbursement of wages has to be done on weekly basis and not beyond a fortnight and wages are credited directly to their bank/post- office account.
j) Panchayat Raj Institutions have a principal role in planning and implementation.
k) Each district has to prepare a shelf of projects. The selected works to provide employment are to be selected from the list of permissible works. The different categories of permissible works are as follows:
· Water Conservation and water harvesting
· Drought Proofing (including plantation and afforestation)
· Irrigation canals including micro and minor irrigation works
· Flood Control and Protection Works
· Minor irrigation, horticulture and land development on the land of SC/ST/BPL/IAY and land reform beneficiaries
· Renovation of traditional water bodies including desilting of tanks
· Land Development
· Rural Connectivity
The shelf of projects has to be prepared on the basis of priority assigned by Gram Sabha. At least 50% of works have to be allotted to Gram Panchayats for execution. A 60:40 wage and material ratio has to be maintained. Contractors and use of labour displacing machinery are prohibited.
l) Work should ordinarily be provided within 5 km radius of the village or else extra wages of 10% are payable
m) Work site facilities such as crèche, drinking water, shade have to be provided.
n) Social Audit has to be done by the Gram Sabha at least once in every six months.
o) Grievance redressal mechanisms have to be put in place for ensuring a responsive implementation process.
p) All accounts and records relating to the Scheme are to be made available for public scrutiny and to any person desirous of obtaining a copy of such records on demand and after paying a specified fee.
q) Those who violates the MGNREGA Act will be penalized with a penalty of rupees up to 1000/-
Funding:
The Central Government bears the costs on the following items:
a) The entire cost of wages of unskilled manual workers.
b) 75% of the cost of material, wages of skilled and semi-skilled workers.
c) Administrative expenses as may be determined by the Central Government, which will include, inter alia, the salary and the allowances of the Programme Officer and his supporting staff, work site facilities.
d) Expenses of the Central Employment Guarantee Council.
The State Government bears the costs on the following items:
a) 25% of the cost of material, wages of skilled and semi-skilled workers.
b) Unemployment allowance payable in case the State Government, if it cannot provide wage employment on time.
c) Administrative expenses of the State Employment Guarantee Council.
Share of women in work force:
The Act stipulates that priority shall be given to women. In terms of implementation it mandates that a minimum of one-third of the beneficiaries are women who have registered and have requested for work. Women participation for FY 2008--09 was 48%. The highest women participation for FY 2008-09 was reported in Tamil Nadu (80%) and Kerala (84%) respectively.
HIKE IN WAGES UNDER MGNREGA:
HIKE IN WAGES UNDER MGNREGA:
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Sl.No Name of the State Pre-revised wage rate Revised wage rate
Rs. Per day Rs. Per day
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1 Assam 100 130
2 Andhra Pradesh 100 121
3 Bihar 100 120
4 Gujarat 100 124
5 Haryana 141 179
6 Himachal Pradesh
Non-Scheduled Area 100 120
Scheduled Area 125 150
7 Jammu & Kashmir 100 121
8 Karnataka 100 125
9 Kerala 125 150
10 Madhya Pradesh 100 122
11 Maharashtra 100 127
12 Manipur 81 126
13 Meghalaya 199 117
14 Mizoram 110 129
15 Nagaland 100 118
16 Orissa 90 125
17 Punjab
17(a) 100 124
17(b) 100 124
17(c) 100 124
17(d) 105 130
18 Rajasthan 100 119
19. Sikkim
20 Tamil Nadu 100 119
21 Tripura 100 118
22 Uttar Pradsh 100 120
23 West Bengal 100 130
24 Chhattisgarh 100 122
25 Jharkhand 99 120
26 Uttarkhand 100 120
27 Goa 110 138
28 Andaman & Nicobar
Andaman District 130 170
Nicobar District 139 181
29 Dadra Nagar Haveli 108 138
30 Daman & Diu 102 126
31 Lakshdweep 115 138
32 Puducherry 100 119
33 Chandigarh
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Source: Ministry of Rural Development, Government ofIndia
Share of SC/ST Households in Employment:
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Source: Ministry of Rural Development, Government of
Share of SC/ST Households in Employment:
In terms of providing employment to members of SC & ST households in 2008-09 the figure stood at nearly 54.72%. In 15 states it was higher than the national average.
Supplementing Income:
Post-NREGA there has been a revision of minimum wages across the country. Average household earning have increased from Rs. 2795 in FY 2006-07 to Rs. 4060 in FY 2008-09. A major share of NREGA expenditure is as unskilled wage
Allocation of Funds to MGNREGA:
During the financial year 2006-07 Rs. 11000 crores, during 2008-09 Rs. 37397.06 crores, during 2009-10 Rs. 39100 crores, and during
2010-11 Rs. 40100 crores (while Rs.79387 were allotted during this financial year to rural development, more than 50% of this were allotted to MGNREGA) were allotted.
Success Stories of MGNREGA:
· Independent studies and research indicates that NREGA has aided in enhancement of agricultural productivity (through water harvesting, check dams, ground water recharging, improve moisture content, check in soil erosion and micro-irrigation), stemming of distress migration, increased access to markets and services through rural connectivity works, supplementing household incomes, increase in women workforce participation ratios, and the regeneration of natural resources.
· MGNREGA is yielding better results when compared to earlier poverty eradication programs. In India
· The wage rates under MGNREGA have been increased by the Ministry of Rural Development with effect from January 2011 in the wake of recommendations of National Advisory Council and in consultations with different Ministries. This will result in 17-30% enhancement across the country. This will benefit more than 5 crore beneficiaries under MGNREGA. Recently Govt. of AP increased the remuneration from Rs. 100/- per day to Rs. 121/- per day and the no. of days from 100 to 125 per annum.
· The wage rates have been enhanced on the basis of Consumer Price Index for the agricultural labour calculated on the basis of Rs.100 or the actual wage rate, whichever is higher as on April 1st, 2009. The linking wages to CPI – Agricultural labuor will result in annual revision of the wage rates. The Government is awaiting for the report of the Pranob Sen Committee constituted to deliberate upon separate index for MGNREGA.
· This Act is performing better in Rajasthan, Andhra Pradesh, Chattisgadh, North Eastern States
Criticism:
· Recently (June, 2011), Andhra Pradesh, Rural Irrigation Minister D.Manikya Prasada Rao has agreed that 100 crores misappropriation of funds is true in MNREGA works and an enquiry will be made in to this.
· There is a criticism that in some states, low wages are paid than the stipulated by the Act. According to the Supreme Court judgment this comes under ‘forced labour’.
· If it is viewed economically, there is a fear that the allocation of funds to MGNREGA may exceed 5% of GDP.
· Controller & Auditor General of India
· Public Works like land development works, afforestation, irrigation works, construction roads, flood control etc. are being carried out by wealthy sections of the society thus betraying poor sections for whom this Act. is meant.
· Leader of opposition in Gujarat Assembly Shaktisinh Gohil had revealed that according to the information sought under Right to Information (RTI) Act, a three-year-old boy had been shown as beneficiary of MGNREGA in Kutch . He further said that the government register provides information about payment made to this minor.
· At some places, it is observed that the workers have to wait months together for their wages and funds are being diverted for other purposes. It is observed that people have to pay Rs.50/- as bribe for their job card.
· It is also noticed that most of the works are confined to papers only and quality is not being maintained.
· The Supreme Court Bench headed by Chief Justice K.G.Balakrishnan, Justice Deepak Varma and Justice B.S. Chowan has commented that there is lack of uniform policy in case of MGNREGA and they have further commented that the funds are not reaching the eligible beneficiaries, except in some states.
· Recently, the Andhra Pradesh High Court questioned seriously regarding the payment of less wages to MGNREGA workers, when compared to minimum wages in different states. It gave interim orders to the Central Government to correct it. It came to notice that in many states providing of employment for 100 days is not being fulfilled. During the last year on an average only 33 days employment is being provided under MGNREGA through out the country. ( MP, Orissa, Chattisghar, Rajasthan-50 days. West Bengal & Tamilnadu only 14-16 days).
· In our state the target of providing employment to 22 lakh poor families under MGNREGA is not fulfilled (not even1/3 of it is fulfilled).
· There is conflict between Minimum Wages Act of 1948 and Section 6(2) of MGNREGA. According to the Minimum Wages Act, wages are to be revised for every three years on the basis of Consumer Price Index (CPI). Thus, minimum wages are increased remarkably in different states. But, contrast to this, the Section 6(2) of MGNREGA says that the wage paid to labourers should not increase a maximum of Rs.100/-
· The Government of India is confined to Section 6(2) of MGNREGA, on the pretext that if Minimum Wage Act is implemented more funds are to be released to states. The Central Government said that if any state wishes to pay more than Rs.100/- it can, but from states budget only.
· The AP High Court directed the Central Government to pay wages according to Minimum Wage Act in which states this Act is in vogue. Though, there is lot of scope for providing permanent utilities under the works of MGNREGA, there is no proof of such activities. It is advised that the government should come out of classical methods of works and try to adopt modern skills. Sufficient number of works is not recognized to provide employment under MGNREGA. Even if recognized also, they are not implemented due to the negligence of authorities. In several states the works are confined to paper only. There is lot of misappropriation of funds and loop holes in public audit. In our state three thousand employees are suspended for misappropriation of funds. If more economic returns are there from this Scheme, the number of beneficiaries will increase.
· In the absence of adequate banking services in rural areas in Jharkhand, some labourers sell their MGNREGA cheques to “middlemen” for a discount to get the money on the spot.
· Recently (16-12-2010), expressing serious concern over faulty implementation of the government’s flagship programme, NREGA, in Orissa, the Supreme Court asked the centre and the state government to explain with in four weeks why a CBI probe should not be ordered into the irregularities.
· Recommendations:
· There should be a proper training for the MGNREGS employees.
· There should be a awareness programs for the workers, as whatever mistakes were found it was because of unawareness among the workers.
· These awareness programs can be associated with SARVA SIKHSHA ABHIYAAN, and night schools can play an important role in this program.
· There should be a transparency and accountability at every stage of MGNREGS.
· Government should form auditing agency at Panchayat level and it should consist of not only the government officials but some other agencies and NGOs.
· Percentage share of the government officials in schemes must be stopped immediately.
· The block/Mandal offices should be closed down and a direct link should be established between district headquarters and the Gram Sabhas. The Gram Sabhas must be given the right of issuing job cards, preparation of muster rolls, planning, implementation and monitoring of the schemes.
· A strong legislation needs to be brought with the provisions of severe punishment as dismissal from the service, imprisonment and recovery of grabbed money with ten times penalty. There should be also a special court, which can sort out the matters in time bound manners.
· Corruption is the most serious issue in MGNREGA, which is prevalent at every level. The share is fixed for the government officials in each scheme and misappropriation of fund is going on shamelessly across the country.
· Interestingly, the Legislative, the Executive and the Judiciary, all are aware about the rampant corruption in MGNREGA but none of these working to bring back the MGNREGA on the right track. The Chief Justice of the Supreme Court, Justice K.G. Balakrishnan says, “NREGA is under the clutch of middle men.”
· The wage is paid to the labourers through the Bank accounts but contractors and middle men comfortably get their share. The schemes are also not accomplished properly but the full amount is released without proper verification. The labourers are also asked to pay for the job cards. Hence, there is a check post of loot in each turning-point of MGNREGA.
· MGNREGA should be coordinated with agriculture.
It is good that Ministry of Rural Development has announced the government’s plan to roll out NREGA II. This version of the project is expected to be more efficient since it eliminates its main shortcomings and deficiencies.
To conclude, though they are some shortcomings like misappropriation of funds at some places, yet this Act is really a boon for rural people. If it is implemented transparently, corruption will be eradicated and enhances the standard of living of the rural people.
REFERENCES
1. Sreelatha Menon – NREGA should have a coherent wage policy,
March 14, 2010, Business Standard.
2. Implementing NREGA– Ministry of Rural Development.
3. Status of NREGA Implementation grassroots of learning and way forward
– Samarthan
4. Jayanti Ghosh – The NREGA and its Critics
5. Report to the People, Ministry of Rural Development Feb.2010.
6. Indian Express: 17-12-2010.
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