The Mahatma Gandhi National Rural Employment Guarantee Act

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005 An overview of features and current debates 21/01/2013

Contents �Rationale �History �Overview of the Act- Processes and Design Features �Implementation and Performance- Some indicators

Rationale Mitigation of seasonal shocks Provision of public goods/servic es Unemploym ent Support Anti-poverty measures Mitigation of idiosyncratic shocks

History �The Maharashtra Employment Guarantee Scheme (MEGS) 1972 �Food for Work Programme FWP 1977 �Sampoorna Grameen Rozgar Yojana SGRY 2001 �National Food for Work Programme (NFFWP) 2004

MEGS, FWP, SGRY, NFFWP Articles 39 and 41 of the Indian Constitution Decentraliza ti-on and regional governance Enabling Environment for the MGNREGA

Introduction to the Act �Notified on 7 th September 2005 and implemented in three phases �Mandate: The Act mandates enhancing livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work. �Objectives: - Primary: augmenting wage employment for the poorest of the poor

Processes-1 Application for job card Selection of Works Issue of job card Approval of projects Demand for Employment Informing the PRIs Preparation of estimates Work allocation and maintenance of muster rolls Social Audit Work measurement Payment of Wages

Processes- 2 Implementation Funding

Design Features Transparency and Accountability Rightsbased, demand driven<link> Guaranteed Employment <link> Guaranteed Wages <link> Social Security measures Financial Inclusion <link> Unemployment Allowance <link> Gender Equity <link> Geographic al proximity to work-site

Other on- going debates �Is it an irreversible guarantee? Should not the guarantee be unlimited? �Private works v/s Public works �Convergence �Full legal safeguards? �Long term strategy or short term solution? �Centre- State issues

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Performance graph-1 However, in 2009 -10, of all the rural households that applied work under the MGNREGA, 44 per cent did not get any work (5. 3 crore HHs were provided employment). In the same years, the average person days per employed HH <back> were 54 days while in the next year, 47 days.

Performance graph- 2 <back>

MGNREGA notified wages and Min Wages Act 1948 (in Rs. ) State NREGA Wage 2006 -07 NREGA Wage 2007 -08 NREGA Wage 2009 -10 NREGA Wage 2010 -11 and 201112 NREGA Wage wef 1 st April 2012 Min. Wages Act 1948 2011 -12 Andhra P 80 80 100 121 137 168 Arunachal P 55 -57 65 -67 80 118 124 135 -154 Jharkhand 76. 68 99 120 122 127 Kerala 125 125 150 164 200 Mizoram 91 91 110 129 136 170 Rajasthan 73 73 100 119 133 135 WB 69. 4 100 136 167 <back>

No. of Active Bank/PO Accounts in 2011 -12 72 per cent of wages were disbursed either through bank accounts (53 per cent) or PO accounts (19 per cent)

Unemployment Allowance in 2010 -11 �No. of days for which allowance is due: 2185024 �No. of days for which allowance is paid: 514 �Total Amount paid: Rs. 123589 which is approx Rs. 240 per day <back>

Inter-State variation in women’s participation <back>