-The Financial Express The proposed MGNREGA changes can help plug the leakages and enhance agriculture productivity There is good news about the Mahatma Gandhi National Rural Employment Guarantee (MGNREGA) scheme. Recent press reports reveal that the rural development minister, Nitin Gadkari, has instructed lowering of the mandatory share for unskilled wages in total expenditure from the current 60% to 51%. He has also directed, quite rightly, that 50% of the expenditure be...
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Telling the right reform from the wrong -Pramathesh Ambasta
-The Indian Express Moves to dilute labour-material ratio in MGNREGA and focus exclusively on select backward blocks will adversely impact rural poor. Before the general elections, free-market fundamentalists had lobbied fiercely to reshape so-called wasteful social-sector expenditures. Primary among their targets was the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which, according to them, should become an unconditional cash transfer scheme. Post-elections, the late Gopinath Munde's espousal of the MGNREGA went...
More »Fixing MGNREGA
-The Financial Express What's clear is it has helped few in its current form Activists have come down heavily on rural development minister Nitin Gadkari for attempting to restructure the MGNREGA by, among others, changing the mandatory amount reserved for labour; the number of districts that the scheme is to be used for is also to be reduced to just the needy ones. This has been done, the activists argue, to help...
More »How to improve the welfare state -Ajay Chhibber
-The Business Standard Make schemes mobile and portable, by focusing on people and not products India spends close to four per cent of its GDP on an alphabet soup of welfare schemes and subsidies - it has become a welfare state before becoming a developed state. Despite its significant costs, India's welfare system is neither comprehensive nor very effective - subject to huge leakages and corruption, and not well knit into...
More »Making it work -Shamika Ravi
-The Indian Express The MGNREGS stands out as one of the Indian government's most ambitious social schemes, with far-reaching consequences throughout the economy. The only known recipe for poverty eradication is a combination of high growth and high development spending. Neither is sufficient. A recent study (Kapoor and Ahluwalia, 2012) has shown that post-liberalisation, one champion of poverty reduction in India is Andhra Pradesh. This reduction in poverty is widespread, as...
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