Every year in the month of either February or March, the Ministry of Rural Development (MoRD) announces the notified MGNREGA wage rates (i.e., notified daily wage rates for MGNREGA workers) for various states and Union Territories (UTs) for the upcoming financial year. The MGNREGA rates are notified every year based on the increase in Consumer Price Index for Agricultural Labourers (CPI-AL). Like the previous years, in 2021 too, experts and civil...
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The poor are bearing the brunt of inflation -Krishna Raj
-The Tribune The prices of essential food items have increased by 50% in seven years, whereas the real wage rate has risen by 22%. These figures show that inflation has outsmarted the real income of the poor, making their lives miserable as the food basket constitutes a substantial proportion of the total expenditure on the poor. The net effect is that the poor earn less and take loans to maintain the...
More »Poor Economics: Has India’s poverty really fallen? -Santosh Mehrotra & Jajati Parida
-Financial Express Dataset and methodological weaknesses cast doubt on recent poverty estimates that claim drastic reduction Bhalla, Bhasin and Virmani in a working paper (IMF), claimed India’s poverty, per a $1.9 per person per day poverty line (at PPP), was 0.9% of the population in 2020. Thanks to government transfer of free rations of 5 kg per person month, it fell to 0.8% (from 0.9% in 2019). Roy and de Velt, for...
More »Reality is stranger than the fad for online education -- most schools lack IT-infrastructure
Online teaching was perhaps the most preferred mode (of the policymakers) for imparting education to school children in the last two years when schools faced closures thanks to the COVID-19 pandemic. It was promoted by both the Central and State Governments when mobility almost came to a standstill (or got restricted in comparison to normal times) during the last two years. However, various studies (a list of those studies is...
More »real wage rates of the rural workers hardly increased during the last 6 years
In the absence of income or expenditure-based headcount ratio, the growth in the real wages (i.e., nominal wages adjusted against retail inflation) of the manual workers is considered to be a good proxy to assess the trends in poverty. This is because the manual, unskilled/ semi-skilled labourers exist at the bottom of the pyramid or economic hierarchy, and most of them belong to the social categories Scheduled Castes (SCs) and...
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