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LATEST NEWS UPDATES | Economic Survey's Call for MGNREGA to Become 'Rural Distress Indicator' a Nod to Jobs Crisis?

Economic Survey's Call for MGNREGA to Become 'Rural Distress Indicator' a Nod to Jobs Crisis?

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published Published on Jul 6, 2019   modified Modified on Jul 6, 2019
-TheWire.in

The survey also conferred a lot of credit on the Centre’s move in 2015 to implement direct benefit transfer and Aadhaar-linked payments when it comes to workers' wages.


New Delhi: In tacit acceptance of the sudden surge in demand for jobs under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) following the demonetisation move of the government in 2016, the Economic Survey (released this July 4) has called for using the scheme as an indicator of rural distress.     

“Demand for work under MGNREGA may be used to develop a real-time indicator of distress at the granular district/panchayat level,” the survey said.

The survey noted that distress at the level of a district or panchayat is not easy to detect in real-time by using current datasets. Even though the National Sample Surveys (NSS) are carried out at household levels, the results are released “after a gap of almost two years”, thus limiting their use by the government to address rural economic distress.

The survey underlined, “By utilising information on demand for work under MGNREGA and correlating it with other real-time measures of weather etc., that lead to rural distress, a dashboard can be created which flashes ‘alerts’ from areas under local distress to enable policymakers to act in a timely manner to alleviate such distress.”

From July to December 2016, due to jobs lost by migrant labourers after demonetisation, the demand for employment under MGNREGA rose to an all-time high. An Indian Express report in 2017, quoting from the records of the Ministry of Rural Development, said the demand peaked by over 60%.

“The reverse migration triggered by mounting job losses for informal workers employed in the Micro, Small and Medium Enterprises (MSME) has translated into an increased demand for work provided in rural India under the employment guarantee scheme. According to officials, December (2016) — by when much of the rabi sowing is over — usually registers a slight increase in demand, but never to the extent that was witnessed last month,” the report noted.

“Data shows that on November 7 (2016), the day before Prime Minister Narendra Modi’s announcement, 38.52 lakh labourers sought work under MGNREGA. The number fell slightly to 35.60 on December 2 (2017), but thereafter rose through the month and in January (2018), reaching 78.90 lakh on Thursday and 83.60 lakh on Saturday,” it said.

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TheWire.in, 4 July, 2019, https://thewire.in/labour/budget-2019-economic-survey-mgnregs-aadhaar-direct-benefit-transfer


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