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Resource centre on India's rural distress
 
 

Drying up of MGNREGA allocation will shrink the rural economy further -Dibyendu Chaudhuri and Parijat Ghosh

-Down to Earth

The focus of MGNREGA has, over time, shifted from employment creation to asset creation 

The funds allocated in the Union budget 2021-22 for implementing schemes under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) were exhausted within the first half of this financial year.

The budgetary provision for 2021-22 was Rs 73,000 crore, of which Rs 79,810 crore has been spent. Many workers didn’t get paid; it may take at least a month until the next parliamentary session begins and a supplementary allocation is made.

The work will probably stop in at least 22 states, which have supposedly spent more money than they were allocated. Workers are less likely to get compensation at places where payments are pending. This is a blow to an already shrinking rural economy.

The recent Global Hunger Index (GHI) showed that hunger in India is still a serious issue. Delayed payments or lack of work in rural areas will only aggravate the issue.

The demand for MGNREGA work spiked during the early time of the novel coronavirus disease (COVID-19) pandemic; there was almost no other source for rural people to find work.

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