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Resource centre on India's rural distress
 
 

Index NREGA wages to rural inflation: Rural development ministry -Subodh Ghildiyal

-The Times of India

NEW DELHI: In a bid to ensure higher returns for labourers in MGNREGA, the Union rural development ministry has again asked the finance ministry to index the wages under the job guarantee scheme to Consumer Price Index (rural - CPI-R) in place of the current CPI (agricultural labourers - CPI-AL).

The RD ministry has argued that CPI (R) better reflects the present consumption pattern among rural households unlike CPI(AL) which is an old basket of measurement. The CPI (AL) has a greater weightage for food items, whose prices have dipped after the advent of the National Food Security Act.

According to sources, the switch in indexing would result in hike in wages and put an annual financial burden of Rs 2,500 crore on the Centre.

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