MGNREGS effect: 11% rise in income of rural households

The income of poor households rose by 11 per cent and farm productivity by up to 32 per cent due to various works carried out under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), says a study by the Institute of Economic Growth.
According to the IEG study, cereal productivity increased by 11.5 per cent and vegetable productivity by 32.3 per cent in rural areas under the scheme.
Around 155 types of works are carried out under the rural employment guarantee scheme to ensure employment in rural areas as well bring forth asset creation in these areas.
Majority of funds under the scheme are utilised for water conservation works.

"The study recorded an increase in incomes of households by nearly 11 per cent and increase in cereal productivity by 11.5 per cent and vegetable productivity by 32.3 per cent," the rural development ministry said in a statement, sharing details of the IEG research.
The study was carried out to assess the impact of works under MGNREGS on sustainable livelihoods.

The income mentioned in the findings of the study is other than the wages given for works carried out under MGNREGS.
A total of 78 households reported benefits from an increase in water table, ranging from 30 per cent in Muktsar to 95 per cent in Vizianagram, the study said, adding that 66 per cent households reported benefits from availability of fodder on account of the water conservation works.

The expenditure under MGNREGS in the last three years (2015-16, 2016-17, 2017-18) has been the highest ever since its inception in 2006. It was scooped up to cover all districts of the country from April, 2008.