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Resource centre on India's rural distress
 
 

The government must ramp up MGNREGS

-Hindustan Times

Expanding the scheme will improve incomes, boost demand. Along with expanding the scheme, the ministry must also roll out without delay, as promised, a programme for skill building of these workers so they can move up the economic value chain, and also utilise this labour in a proactive manner for water conservation projects, another key programme of the Centre.

A report in the Hindustan Times on Monday said that the Union rural development ministry has sought an unprecedented, additional Rs.20,000 crore to fund the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), a programme that offers at least 100 days of employment in every financial year to every rural household whose adult members volunteer to do unskilled manual work. The request for additional funds, which will need Parliament’s approval, is in addition to a record allocation of Rs.60,000 crore for MGNREGS in the 2019-20 Budget. The total budget for the ministry was Rs.1.2 lakh crore.

The additional funds are needed because 540 million persondays out of the estimated 2.5 billion persondays of work in 2019-20 would go into building houses under the Pradhan Mantri Awas Yojna. But it is also clear that there has been a spurt in demand for the scheme because of shrinking employment opportunities due to the economic slowdown and reduced household spending.

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