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LATEST NEWS UPDATES | Is repurposing MGNREGA the right way forward? -Ashwini Kulkarni and Pramathesh Ambasta

Is repurposing MGNREGA the right way forward? -Ashwini Kulkarni and Pramathesh Ambasta

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published Published on May 25, 2020   modified Modified on May 26, 2020

-The Indian Express

MGNREGA is not the best instrument to help MSMEs in urban and rural areas. Mixing up its objectives can only lead to chaos with no value addition

Newspaper reports suggest that a Group of Ministers (GoM) on employment, whose report is not yet available in the public domain, has made draft recommendations including some on MGNREGA. Their suggestions include merging MGNREGA with skill development programmes and using its funds to provide a wage subsidy for small and medium-size enterprises (SMEs) in urban areas as well. Further, work in factories and construction sites may also be treated as employment under MGNREGA.

The COVID-19 pandemic and its impact on the economy, especially on migrant workers and MSMEs, could well be guiding such recommendations. A thorough understanding is required of these recommendations as the proposed changes are likely to radically restructure MGNREGA. This is even more so given the finance minister’s announcement of an additional Rs 40,000 crore for MGNREGA in the current fiscal, taking the total allocation above Rs 1 lakh crore.

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The Indian Express, 25 May, 2020, https://indianexpress.com/article/opinion/columns/mgnrega-covid-19-india-lockdown-6426987/


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