You are here: Home » Economy & Policy » News
Business Standard

Do not dilute MGNREGA, eminent citizens ask government

PAEG says that changing material-labour ratio will result in 40% fall in emplyment generation

BS Reporter  |  New Delhi 

A section of prominent citizens came together on Wednesday to appeal to the NDA led government to seek increased allocation of funds for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) and ensuring no dilution of the scheme.

The People's Action for Employment Guarantee (PAEG) led by Aruna Roy pointed out that the government's decision to amend the schedule of MGNREGA by changing the material- labour ratio from 60:40 to 51:49 will lead to a sharp fall of 40 per cent in employment generated and a loss of income for over five crore households in the country.

Labour-Material ratio is the ratio of wage costs to material costs and the act lays out that the ratio be fixed at 60:40. "Senior Ministry officials make it clear that this decision would run counter to the spirit of the act and that past experience has shown that such material intensive works brought benami contractors, which resulted in corruption and their ultimate deterioration, Aruna Roy said.

The new government had been focusing on implementing the scheme in 2,500 backward blocks under its Intensive Participatory Planning Exercise. The blocks were identified based on percentage of population below poverty line (BPL) as per the Planning commission estimates of 2013, and a backwardness index prepared by the Planning Commission using the 2011 Census data.

The group has also demanded that the budgetary allocations of MGNREGA be based on generation of demand and enhanced in line with the rate of inflation. With UPA-II government

tightening spending in its last years, MGNREGA allocation was reduced from Rs. 40,100 crore in 2010-11 to Rs 33,000 crore in 2013-14. The government has so far spent 2.6 lakh crore on the project since its inception.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Wed, October 08 2014. 17:52 IST
RECOMMENDED FOR YOU
.