MGNREGA Updates and COVID-19 Pandemic

MGNREGA Updates

• In March 2023, the government announced new wage rates for unskilled manual workers under the Mahatma Gandhi National Rural Employment Guarantee Act, 2005.
• The Union Government has made it mandatory for payments to be made for MGNREGA beneficiaries through the Aadhar-Based Payment System (ABPS).
• In 2021-22, the Union government allocated Rs. 72,000 crores for the MGNREGA scheme.

MGNREGA and COVID-19 Pandemic

• During the COVID-19 pandemic, Finance Minister Nirmala Sitharaman announced a hike of Rs. 2,000 each on average for workers under the MGNREGA.
• Three crore senior citizens, persons with disabilities, and widows received a one-time additional amount of Rs. 1,000 in two instalments through Direct Benefit Transfer (DBT).
• The 21-day lockdown was expected to cost the Indian Economy around Rs. 9 lakh crores.
• Funds worth Rs. 31,000 crore were allocated to augment medical testing, screening, and providing better healthcare facilities to those affected financially.

MGNREGA History

• In 1991, the P.V Narashima Rao government proposed the Employment Assurance Scheme, which later evolved into the MGNREGA.
• The scheme merged with the Food for Work Programme in the early 2000s.

Objectives of MGNREGA

• MGNREGA has a grassroots-driven approach to employment generation.
• The scheme is demand-driven and provides legal provisions for appeal in case work is not provided or payments are delayed.
• The central government bears the full cost of unskilled labour and 75% of the cost of material for works undertaken under this law.

Salient Features of MGNREGA

• The scheme has been successful in enhancing economic empowerment in rural India and helping overcome the exploitation of labour.
• The scheme has diminished wage volatility and the gender pay gap in labour.
• The number of jobs has increased by 240% in the past 10 years.

Role of Gram Sabha and Gram Panchayat

• Gram Sabha is responsible for identifying the beneficiaries, preparing the Shelf of Projects, and monitoring the implementation of the scheme.
• Gram Panchayat is responsible for implementing the scheme, maintaining the records, and providing employment to the beneficiaries.

Role of State Governments

• The state government is responsible for executing the MGNREGA scheme.
• The state government plays a crucial role in the implementation and monitoring of the scheme.