Analysis On MGNREGA Work During COVID-19

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ABOUT MGNREGA

The Mahatma Gandhi National Rural Employment Guarantee Act, earlier known as the National Rural Employment Guarantee Act
It was passed on 7th September 2005 to augment employment generation and social security in India.
It covers all districts of India except the ones with 100% urban population.

Paid rural employment of not less than 100 days for each worker who volunteers for unskilled labour.
Creation of durable assets in rural areas.
Reduce urban migration from rural areas.

The Central Government pays for 100% of the wage expenditure & 75% of the material expenditure under the scheme.

There are currently 77 crore job card (JC) holders registered under MGNREGA.
Amongst this 69 crore are active JC holders.

The wages paid under MGNREGA are as per the notified wages of the state where the work is being carried out and which show a wide variance.
Haryana, for instance, pays the highest wages under MGNREGA, of Rs 309 per day
While Madhya Pradesh and Chhattisgarh pay the lowest, of Rs 190 per day.

Assuming the average daily wage rate of Rs 202.39 for 2020- 21, for 100 days of employment.
It would would mean a payment of more than Rs 2.78 lakh crore should all the registered JC holders seek work.
Even if one assumes that only the active JC holders seek work under MGNREGA,
That itself entails a payment of over Rs 1.55 lakh crore —
which is more than 50% higher than the revised allocation.
This year could see a surge in the number of people seeking work under MGNREGA.
Because of the return of several migrant labourers from the urban areas to their villages, after the Covid-19 induced lockdown that resulted in widespread job losses.
37% of India’s population, amounting to more than 45 crore, comprises inter as well as intra-state migrant workers.
Even a 1.5-2% increase in the number of people seeking employment under MGNREGA this fiscal — would mean a payment of more than Rs 1.62 lakh crore.
So far, in 2020-21, 1.67 crore people have been provided work under MGNREGA.