Nine-member committee was headed by former rural development department secretary Amarjeet Sinha
A government panel constituted to examine various factors affecting wage employment, its demands and bring reforms in Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) suggested substantial increase in wage and budgets.
Among the multiple recommendations made to the central government, it is suggested to increase the wages substantially, sources told Down To Earth (DTE).
“These wages have to be increased not more than the labour market rate, but also not much below them. Instead, they should be at par or competitive. Such a step would enable workers to earn a decent livelihood and contribute to the national economy,” the person said, adding:
The purpose of the MGNREGA is livelihood promotion and guarantees 100 days in person. However, with the current budget allocation, it is not being achieved. The maximum workers can manage with the given budget is 70-80 days of work in a year. The national average stands to a little over 50 days of work, which is half of what the act promises.
The panel has, however, recommended an increase in budget allocation to ensure that the objective of the act of employment generation is achieved.
For the current fiscal year 2023-24, it has suggested an allocation of Rs 67,000 crore on labour alone and another Rs 40,000 crore on other costs, the sources added. “This way, the budget of MGNREGA will exceed over one lakh crores,” a source said.
Besides, it has suggested that wage rates be reviewed considering the Consumer Price Index-Rural (CPI-R). “At present, the revision of wages is done according to CPI-Labour. But to maintain fairness, the wages should be set keeping CPI-R as the reference,” an expert said.
These wages should also be revisited for reassessment every five years, it is recommended, they added.
The panel has also suggested increasing the contribution of MGNREGA works in states that have performed less or are poor. “There are some states which have not seen effective implementation as expected. Our analysis showed that some states with high concentrations of poor people have not been able to seek benefits. It has been recommended to devise a mechanism to enable such states to perform better,” the source added.
Citing examples of Rajasthan and Himachal Pradesh, the expert said these states have effectively implemented MGNREGA. But others such as Uttar Pradesh, Bihar, Odisha, Assam and some more are lagging behind, they added. “It is recommended that a new mechanism enable them to increase their capacity,” it said.
Among other suggestions, the panel has said to adopt a decentralised approach in implementing the schemes. “It is suggested to restructure the list of 265 works into broader categories. For instance, water conservation should be the broad category, while the panchayat institutions should decide which implement the best suited methods,” the expert said.
Avoiding straightjacketing of categories would help workers or locals decide which water harvesting method suits them the best according to agro-climatic conditions. “Digging a pond, well or other water harvesting methods could be implemented accordingly,” the panel contributor said.
The experts also suggested some administrative measures, including assessing ground reality and creating necessary infrastructure and systems for its effective implementation. “Use of technology and increasing accountability is welcome, but for example National Mobile Monitoring System for attendance is not effective as the required arrangements are not done across the country,” the expert said. States like Andhra Pradesh and Telangana have pioneered the use of technology under MGNREGA, but the same does not hold true for other states such as Bihar, Uttar Pradesh and others.
Hence, such technologies should not be implemented at one go without on ground preparations.
The nine-member committee was formed in December 2022 and was headed by former rural development department secretary Amarjeet Sinha. It aimed to study expenditure costs across states in the scheme and analyse governance issues.
The terms of reference of the committee stated, “To examine if composition of MGNREGS works may require change of focus considering over 15-year-record of implementation, developments such as extension of irrigation facilities, extensive work from multiple sources in various domains such as drinking water, sanitation, impending climate change etc.”
The order further stated that the committee was directed to recommend changes in institutional mechanisms regarding governance, administrative structures and effective usage of MGNREGS funds targeting poverty and improving livelihoods.
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The panel has also suggested increasing the contribution of MGNREGA works in states that have performed less or are poor. Photo: iStock.png)
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