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Home > Press > Higher work demand and Greater Timely Payment of wages in MGNREGA

Higher work demand and Greater Timely Payment of wages in MGNREGA

An article by Dr. Jean Dreze, in Indian Express on July 13, 2018 highlights four issues pertaining to the implementation Mahatma Gandhi National Rural Employment Guarantee Act.  

  1. Fall in demand for work because of lower wage rate.
  2. Delayed payments & rejected payments and less compensation to workers owing to delayed payments.
  3. Technological interventions including National Electronic Fund Management System (Ne-FMS) and Aadhar Payment Bridge System (APBS) leading to further delay of payments.
  4. Inadequate Grievance Redressal System

 

The contentions above given in the article are far from reality. The facts are presented hereunder-

The table below gives information regarding person days (PDs) generated /work done in the last 3 financial years and current financial year (so far). It clearly shows that the person days generated has been very high compared to most of the years.

Financial Year

Person days generated

 (in crore)

2012-13

230.45

2013-14

220.36

2014-15

166.2

2015-16

235.14

2016-17

235.6

2017-18

234.26

2018-19 (so far)

78

 

This indicates that there is no decrease in demand for work under the programme. In the first quarter of financial year of 2018-19 with the Prime Minister’s thrust on water conservation, 78 crore person days (PD) has already been generated. There is no sign of slowing down or reduction in demand because of wage rates. Infact, the proposal of indexation of MGNREGS wages to Consumer Price Index (Rural) is under examination in the Government. On account of National Food Security Act (NFSA), availability of subsidized food grains and low food inflation rate, the increase in wages as per CPI(AL) has been modest.

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