-The Hindu To meet the fiscal deficit target for this year, the Central government is brutally slashing social sector allocations but is keeping expenditure cuts for the physical infrastructure sectors at a minimum. This re-aligning of plan outlays across sectors by the Finance Ministry is in line with the government's priorities. The Narendra Modi government views infrastructure spending as growth-enhancing and an essential element of its plans for reviving the economy. The...
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Wrong numbers: Attack on NREGA is misleading
-The Times of India Jagdish Bhagwati and Arvind Panagariya, hereafter BP, have argued for phasing out the National Rural Employment Guarantee Act in favour of cash transfers ("Rural Inefficiency Act", ToI, 23 October). It's surprising-and amusing-that two eminent economists have chosen to make a case based on prior beliefs and some sophomoric wordplay ('mis'leading economists), rather than on the available evidence. A survey by one of us of the empirical literature...
More »Govt may downsize MGNREGA to boost scheme impact on the poor -Chetan Chauhan
-The Hindustan Times For fiscal prudence and better outcome of public expenditure, the Narendra Modi government is likely to downsize some of the social sector schemes, including the rural job guarantee programme, the biggest grosser of the central funds. Finance minister Arun Jaitley had allocated about Rs. 33,351 crore for Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) in his budget this July but many believe that the huge expenditure was not...
More »Dangerous withdrawal -Prabhat Patnaik
-The Telegraph The National Democratic Alliance government is planning to scrap the Mahatma Gandhi National Rural Employment Guarantee Act. The chief minister of Rajasthan, Vasundhara Raje, had already asked for the employment programme of the MGNREGA under which the state was obliged to provide employment on demand (failing which an unemployment allowance of a specified amount had to be paid), to be downgraded to a mere "food-for-work" programme, where the state...
More »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...
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