Days after rejecting the National Advisory Council (NAC) demand for matching the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGA) with minimum wages, the Government has now agreed to link the wages with inflation. This would mean a 17 per cent to 30 per cent increase in the present wage of Rs 100 per day. The National Advisory Council headed by Congress President Sonia Gandhi had wanted the wages to match minimum...
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A Notional Advisory Council? by Jean Drèze
The National Advisory Council's recommendations on the National Food Security Bill are in danger of being brushed aside. It is the fate of most advisory committees that the government accepts whatever advice suits its purposes and ignores the rest. The first version of the National Advisory Council (NAC-1) managed to avoid that fate to some extent, due to favourable circumstances. NAC-1 was able to persuade the government to enact the...
More »State to seek hike in wages of job guarantee scheme by NJ Nair
Government planning to move court for Rs.200 as wage The State government is planning to move the court seeking to enhance the minimum wage being given to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) beneficiaries from Rs.125 to Rs.200. Official sources told The Hindu here that this option was being explored in the wake of Prime Minister Manmohan Singh's decision to link wages with the Consumer Price Index. Consequent to...
More »Rangarajan panel differs with NAC on food entitlements for non-poor by Gargi Parsai
The Experts Group chaired by the Prime Minister's Economic Advisory Council Chairman, C. Rangarajan, favours mandatory entitlement of subsidised foodgrains to the ‘priority' category (Below the Poverty Line) as recommended by the National Advisory Council (NAC). But the Group does not think that it is feasible to extend to the ‘general' category (Above the Poverty Line) legal entitlement of subsidised foodgrains under the Public Distribution System (PDS). The panel has suggested...
More »Rural job scheme minimum wage revised, risking inflation spiral by Ruhi Tewari & Asit Ranjan Mishra
In a move that brings relief to the rural workforce, but risks creating an inflation spiral, the government on Thursday revised the minimum wages paid for its flagship job guarantee scheme by linking them to the Consumer Price Index for agricultural labour (CPI-AL) for each individual state. Such a price spiral, in case it actually emerges, could roil the electoral prospects of the Congress in the key contests to the state...
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