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LATEST NEWS UPDATES | Finance ministry rejects report seeking revision in MGNREGS pay -Elizabeth Roche

Finance ministry rejects report seeking revision in MGNREGS pay -Elizabeth Roche

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published Published on Aug 11, 2016   modified Modified on Aug 11, 2016
-Livemint.com

The report also suggested revising pay under MGNREGS on the basis of Consumer Price Index for Rural (CPI-Rural) as the appropriate index

New Delhi:
The finance ministry has rejected a report by the rural development ministry, which recommended that wages under the national rural employment guarantee scheme (NREGS) be made equal to or higher than the minimum wage determined by state governments.

The report prepared by a panel headed by S. Mahendra Dev, director at the Mumbai-based Indira Gandhi Institute of Development Research and set up by the previous Congress-led United Progressive Alliance government, also recommended revising wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) every year, on the basis of Consumer Price Index for Rural (CPI-Rural) as the appropriate index.

The report was sent to the finance ministry last year and returned this month.

A senior official in the rural development ministry, who did not want to be identified, on Tuesday said the finance ministry had sent back the report, without specifying reasons. It is, however, thought that the finance ministry action may have been due to the burden that the wage increase would place on the exchequer.

Currently, the wages under MGNREGS are linked to the CPI and the annual revision is based on the CPI-AL (CPI for agriculture labour).

“CPI-AL covers the households of agricultural labourers and the CPI-RL covers the households of rural labourers (including agricultural labourers). The CPI-Rural, however, provides the price changes for the entire rural population of the country,” the Mahendra Dev panel report said.

A second official, however, said wages paid under MGNREGS in some states such as Haryana were higher than the state’s minimum wages. But in others, it was lower. This official, too, spoke on the condition of anonymity.

Meanwhile, in another development, the ministry of rural development has released about Rs.28,000 crore to state governments in the first four months of 2016-17.

Amarjeet Sinha, rural development secretary, said the ministry still had about Rs.14,000-15,000 crore available with it to meet future demands.

“MGNREGS is about meeting the demand for work. The monsoon has been good, there is employment available in the agriculture sector for households. We have adequate funds, given the current demand,” Sinha said.

Sinha was speaking at an event organized by the ministry to announce a plan to closely monitor all physical assets created under MGNREGS.

According to rural development minister Narendra Singh, every year, the government allocates Rs.30,000-40,000 crore to the programme to sponsor various works for the creation of wages, employment and productive assets.

“The move comes after Prime Minister Narendra Modi, during a review meeting held recently, had underlined the need for online recording and monitoring of assets to check leakages and for effective mapping of resources and their location details for future development works,” Tomar said.

Geotagging of assets will capture the latitudinal and longitudinal coordinates of the location of assets. Assets created under MGNREGS include works related to natural resource management such as water conservation, land development and irrigation. Besides these, dams, irrigation channels, check dams, ponds, wells and anganwadi assets have also been constructed under this scheme.

Livemint.com, 10 August, 2016, http://www.livemint.com/Politics/SzPlWybBjEjglNAggCO59H/Finance-ministry-rejects-report-seeking-revision-in-MGNREGS.html


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