A clearing house of ideas, info, alternatives, on rural India's multiple crises

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-Press Release by NREGA Sangharsh Morcha, dated 28 October, 2018<br />
<br />
The
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is 
meant to be demand-driven in the sense that work should be made 
available to anybody on demand for a maximum of 100 days per year per 
household. This implies that there cannot be arbitrary cap on the 
budgets. However, the programme has been made supply-driven and stifled 
due to -- (a) Insufficient budgets, (b) Lack of timely payment of wages,
and (c) Low wage rates, among others.<br />
<br />
<em>Insufficient Budgets<br />
</em><br />
At
an average cost per day person of Rs 255.08 and including pending 
liabilities of Rs 8707 crores from previous years, the allocation for 
2018-19 should at least be Rs 74,805 crores. However, the total 
available budget in 2018-19 is only Rs 50,480 crores. As on 22nd 
October, 2018, about Rs 39,825 crores have already been spent. The total
payments due for this financial year (FY) is Rs 3668 crore. Thus about 
86% of the available funds for MGNREGA in this FY have already been 
spent. We still have 5 months left in this FY.<br />
<br />
Contrary to lofty 
claims of &ldquo;highest ever budget for MGNREGA&rdquo; made by the Finance 
Minister, after adjusting for inflation, the MGNREGA fund allocations 
have actually decreased over the years.&nbsp; Independent estimates had 
indicated that at least 1.7% of the GDP needs to be allocated for the 
programme to run robustly. In reality the allocation has only been 
around 0.25% of the GDP in each of the last 5 years. The 
inflation-adjusted budget for 2018-19 is much lower than in 2010-11. 
This is even more pitiful as the Centre claims that the tax to GDP ratio
has been increasing and so the reasons for the gross underfunding of 
the Act is unacceptable. Table 1 in the annexure gives the MGNREGA 
budget over the years as a percentage of GDP.<br />
<br />
Please <a href="tinymce/uploaded/MGNREGA Funds Crunch Wage Payment Delays and Low Wage Rates.doc" title="MGNREGA Funds Crunch Wage Payment Delays and Low Wage Rates">click here</a> to access the entire press release.
</div>',
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	'title' => 'MGNREGA faces fund crunch, wage payment delays, &amp; low wage rates, allege civil society activists',
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-Press Release by NREGA Sangharsh Morcha, dated 28 October, 2018<br />
<br />
The
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is 
meant to be demand-driven in the sense that work should be made 
available to anybody on demand for a maximum of 100 days per year per 
household. This implies that there cannot be arbitrary cap on the 
budgets. However, the programme has been made supply-driven and stifled 
due to -- (a) Insufficient budgets, (b) Lack of timely payment of wages,
and (c) Low wage rates, among others.<br />
<br />
<em>Insufficient Budgets<br />
</em><br />
At
an average cost per day person of Rs 255.08 and including pending 
liabilities of Rs 8707 crores from previous years, the allocation for 
2018-19 should at least be Rs 74,805 crores. However, the total 
available budget in 2018-19 is only Rs 50,480 crores. As on 22nd 
October, 2018, about Rs 39,825 crores have already been spent. The total
payments due for this financial year (FY) is Rs 3668 crore. Thus about 
86% of the available funds for MGNREGA in this FY have already been 
spent. We still have 5 months left in this FY.<br />
<br />
Contrary to lofty 
claims of &ldquo;highest ever budget for MGNREGA&rdquo; made by the Finance 
Minister, after adjusting for inflation, the MGNREGA fund allocations 
have actually decreased over the years.&nbsp; Independent estimates had 
indicated that at least 1.7% of the GDP needs to be allocated for the 
programme to run robustly. In reality the allocation has only been 
around 0.25% of the GDP in each of the last 5 years. The 
inflation-adjusted budget for 2018-19 is much lower than in 2010-11. 
This is even more pitiful as the Centre claims that the tax to GDP ratio
has been increasing and so the reasons for the gross underfunding of 
the Act is unacceptable. Table 1 in the annexure gives the MGNREGA 
budget over the years as a percentage of GDP.<br />
<br />
Please <a href="tinymce/uploaded/MGNREGA Funds Crunch Wage Payment Delays and Low Wage Rates.doc" title="MGNREGA Funds Crunch Wage Payment Delays and Low Wage Rates">click here</a> to access the entire press release.
</div>',
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-Press Release by NREGA Sangharsh Morcha, dated 28 October, 2018

The
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is 
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available to anybody on demand for a maximum of 100 days per year per 
household. This implies that there cannot be arbitrary cap on the 
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