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Fact check: Is the demand for MGNREGA jobs declining, as Finance Minister Nirmala Sitharaman claims? -Nidhi Jacob

-Factchecker.in/ Scroll.in

MGNREGA is a social security and employment scheme which aims to provide at least 100 days of guaranteed employment in a year to every rural household.

Union Finance Minister Nirmala Sitharaman, while addressing the Lower House of the Parliament on December 14, claimed that the demand for work under the Mahatma Gandhi National Rural Employment Guarantee Act is declining.

“There is now very obviously a declining demand for jobs in the rural areas. In the rural areas, the demand for Mahatma Gandhi National Rural Employment Guarantee Act in the recent past has been coming down,” Sitharaman had said.

The Finance Minister did not mention exact timelines of the decline in jobs. Demand for jobs has fallen 5.8% from over 8.55 crore households demanding work in 2020-’21 to about 8.05 crore in 2021-’22. This trend continued in 2022-’23, and until December 22, over 6.24 crore households demanded work, lower when compared to the same period in the two previous years.

But the demand for jobs is still higher than it was in 2019-20, before the pandemic and related-lockdowns led to people migrating back to the villages, often without jobs, and reduced incomes.

Mahatma Gandhi National Rural Employment Guarantee Act is a social security and employment scheme which aims to provide “at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.” It comes under the Ministry of Rural Development, and was implemented in 2006.

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