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Employment generation through MGNREGS comes down in Telangana -V Swathi

-The Hindu

Exponential rise in expenditure on material component, notes study group

Hyderabad: Budget cuts for the Mahatma Gandhi National Employment Guarantee scheme coupled with the administrative changes have resulted in reduced employment through the highly successful rural employment scheme in Telangana in the year 2021-22. Improvement in COVID-19 pandemic situation too has been a major factor.

Analysis of three years’ data related to the scheme’s expenditure in Telangana’s 32 districts has revealed that the expenditure was cut down by 10 % during last year when compared with the previous year, says the report from Libtech India, a study group of engineers and social scientists.

Expenditure on the scheme in Telangana was the highest in 2020-21 at 4643 crore which came down to 4087 crore in 2021-22, clocking almost 12 % reduction which in monetary terms amounted to 556 crore.

The drop becomes more significant in view of 3.3 % increase in the NREGS wage rate, the study notes. The wages which stood at 237 in 2019-20, were increased to 245 two years later, and it should have resulted in 3.4 % increased expenditure on wages, all the other factors remaining constant. Instead, the wage expenditure recorded a drop of 9 %.

Besides, the ratio of material and skilled wages component to the total wage expenditure has risen exponentially, from about 19 % in 2019-20 to almost 39 % in the subsequent year, and to 37 % in 2021-22. While the ratio stands well within the maximum cap of 40 %, it also signifies reduced expenditure on unskilled labour.

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