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LATEST NEWS UPDATES | The long road to timely MGNREGA payments -Rajendran Narayanan and Anuradha De

The long road to timely MGNREGA payments -Rajendran Narayanan and Anuradha De

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published Published on Nov 8, 2021   modified Modified on Nov 8, 2021

-The Hindu

There remain delays in the stage where the Central government transfers wages to the workers’ accounts

There is a famous parable of the 13th-century mystic Mullah Nasruddin. He was once spotted under a street light searching frantically for a key that he had lost. A passer-by noticed the frazzled Nasruddin and stopped to help him. After both of them spent a long time searching for the key, the exasperated passer-by asked Nasruddin if he was sure that he had dropped his key there. Pointing to his house far away, Nasruddin said that he had, in fact, lost the key near his house. Agitated, the passer-by shouted at Nasruddin: “If you lost the key near your house, why are you wasting time searching for your key here?” To which Nasruddin, with no sense of irony, responded, “There is no light near my house but there is light here, so I am searching for the lost key here.”

Delays in payments

This parable captures the essence of wage payment delays under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Eight crore MGNREGA wage transactions were pending on Diwali. The People’s Action for Employment Guarantee (PAEG) recently released a tracker with important metrics on MGNREGA implementation. It showed that funds allocation this financial year (FY) is 34% lower than the revised budget allocation of last year. And this year’s funds have been exhausted. The Ministry of Rural Development issued a press release in response to these stating, “Currently Rs.8921 crore funds are available which can meet the wage liability...” This statement is misleading as the Ministry has not accounted for pending arrears of 17,543 crore from previous years. In a welcome move since the media reports, the Chief Ministers of Odisha and Tamil Nadu wrote to the Prime Minister seeking additional funds for MGNREGA.

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The Hindu, 8 November, 2021, https://www.thehindu.com/opinion/op-ed/the-long-road-to-timely-mgnrega-payments/article37372082.ece?homepage=true


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