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LATEST NEWS UPDATES | Three reasons why the Centre has failed to provide relief to drought-hit states through MNREGA -Anumeha Yadav

Three reasons why the Centre has failed to provide relief to drought-hit states through MNREGA -Anumeha Yadav

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published Published on Apr 12, 2016   modified Modified on Apr 12, 2016
-Scroll.in

Despite the Modi government's claims, the scheme is short of funds, and states are unable to offer guaranteed employment to rural workers.

Why aren’t the poor in drought-affected states getting state assistance when they most need it?

The Supreme Court has strongly reprimanded the Modi government for not releasing adequate funds on time under the Mahatma Gandhi National Rural Employment Guarantee Act, or MNREGA, for rural workers especially in drought-hit states.

Under the Act, the government provides a guarantee of up to 100 days of wage employment in rural areas to any household whose members are willing to do manual work. Started in 2006, it draws from the Maharashtra Employment Guarantee Act of 1977, which was enacted after policymakers found that providing wage employment was the most effective and quick way of providing relief to people facing drought.

On April 6, a bench comprising Justice MB Lokur and Justice NV Ramana directed the Centre to release funds immediately, and “not after one year”. It told the Centre: “If you are not releasing funds, no one will like to work.”

The Supreme Court was hearing a public interest litigation filed by Swaraj Abhiyan, a political campaign, seeking relief for drought-hit regions in the country.

On April 7, while continuing its hearing, the judges said the provision of employment opportunities in rural projects had been turned into a “chicken and egg situation” by both the central and state governments. While the Centre said that there was not enough demand for work in the states, the states, in turn, said that the Centre had not allotted enough funds for them to effectively run the programme.

In his 2016-17 budget speech, finance minister Arun Jaitley allotted Rs 38,500 crore to the rural employment scheme, while claiming: “If the total amount is spent, it will be [the] highest budget spend on MGNREGA.” Jaitley added that the scheme would focus on creating 5 lakh farm ponds and wells, and 10 lakh compost pits for the production of manure.

But despite the Modi government claims that it has allotted substantive funds to the scheme in its last two budgets, why is there still a shortage of funds?

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Scroll.in, 10 April, 2016, http://scroll.in/article/806356/three-reasons-why-the-centre-has-failed-to-provide-relief-to-drought-hit-states-through-mnrega


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