The question raises fundamental issues about the MGNREGA’s centralised template and poor delivery mechanism, but it is important to provide a legal basis to its wage structure to protect it against inflation. We need to remember that the way the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was originally conceived, wages were never meant to be equal to the minimum wages; they should have been lower. This is because the...

So why is the UPA hell-bent on killing its unique success story: the NREGA? Here's the inside narrative of the conspiracy. It took 47 days of a protest sit-in at Jaipur to make the state budge(1). It's notable that the objective of this protracted protest was not to coerce the Rajasthan government for an extra share of the state's resources, but to hold the government accountable to the Constitution and its...

The Union government recently indexed the wages of workers under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to the consumer price index for agricultural labour (CPI-AL). The step, aimed at boosting the purchasing power of workers, came in the midst of a controversy over the government not linking wages under MGNREGS to the minimum wage under the Minimum Wages Act, 1948. The wage hike, ranging from 17-30%, is likely...

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...

Since 1947, successive governments have missed innumerable opportunities to put the country on the path of sustained, inclusive growth. Time and again, quixotic ideology has led to meaningless debates, antediluvian policy and inexplicable strangulation of capacity buildup in both physical and social infrastructure. Even today, while the gap between current and projected national demand and supply is well acknowledged, the government continues to drag its feet in creating the policy...