Experts say unless non-farm activities grow in rural areas or demand rises in the urban, the informal sector might continue to struggle
The rural development ministry has sought additional funds of about Rs 25,000 crore for the MGNREGS, in a clear indication of a rise in demand for work, sources said on Tuesday. The ministry has sought Rs 25,000 crore from the finance ministry and it is expected that the funds will be allocated by the second week of this month, the sources told PTI. In the Union Budget for 2022-23, an amount of Rs 73,000 crore was allocated for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). Of this amount, about Rs 54,000 crore have been allocated to the states so far, the sources said. About 181 crore person days of work has also been generated under the programme so far, they added. The total expenditure on the MGNREGS is expected to touch the last financial year's level of Rs 98,000 crore. The government would take Parliament's approval for the additional fund allocation under the MNREGA through the first batch of the Supplementary Demands for Grants to be tabled in th
A rise in the demand for work under the scheme shows rising economic distress
The Centre has spent Rs 5 lakh crore on MGNREGA scheme during the past eight years, out of which 20 per cent was spent during the COVID-19 pandemic, Union Finance Minister Nirmala Sitharaman has said. Speaking to reports in Kamareddy district of Telangana on Thursday, she said the state was given Rs 20,000 crore under the the Mahatma Gandhi National Rural Employment Guarantee scheme in the past eight years. "During the past eight years, Telangana received Rs 20,000 crore under MGNREGA. During the same period all over the country Rs 5 lakh crore has been spent, out of which more than 20 per cent was spent in 2020-21 during COVID-19 pandemic," she said replying to a query. The important issue in this is survey teams will come (to any state) if there are any complaints that the money was not spent accordingly or there are any remarks in the audit report. Referring to the allegations that survey teams are being sent to curtail the scheme, she said the survey teams will come to correc
According to economists and policymakers, this reflects the continued lure of MGNREGS among rural manual casual labour despite a near resumption of economic activity, both in rural and urban areas
Income generation must be the focus of policy
According to the report, while growth has taken place in terms of an increase in wages earned, the benefits of that growth have been concentrated and this has marginalised the poor further
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The government has continued with earlier policies, schemes and extent of outlays, without attempting radical shifts or transformations
Says price rise in perishable food items due to production seasonality
The financial statement for the scheme shows a negative balance of about Rs 8,800 crore, and nearly Rs 10,000 crore in pending wages
This was mainly on account of migrants again returning to their homes due to the second wave of Covid-19 and several cities going into lockdowns
With schemes like MGNREGA and cash support via PM-KISAN given priority in allocation from the remainder, govt is forced to dip into capital receipts from disinvestment and borrow from the market
If clearing of FCI's outstanding dues and loans does not spur further reforms, they will once again reach current levels in the next 4-5 years, say experts
The reversal in demand also reflects the growing need for further pushing the programme
Rural economy won't be able to support excess workers forever
Of 24.3 mn households that demanded work, only 16.3 mn got it
The countrywide lockdown imposed on March 24 to contain the spread of Covid-19 resulted in large-scale job losses in both the formal and informal sectors
Almost 63 per cent of the increased allocation of around Rs 1.01 trillion has been spent in the first five months of 2020-21