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Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

GS Paper: 2

Topics Covered: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable sections.

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

What to study?

For Prelims: Overview, implementation and bodies established under the act.

For Mains: Significance of the law, performance analysis and ways to improve.

Context: A Parliamentary Standing Committee has asked the Rural Development Ministry to replace caste-based NREGS payment with the earlier mechanism of generation of single Fund Transfer Order

 

Key observations:

  • Parliament’s Standing Committee on Rural Development and Panchayati Raj has asked the government to roll back the system of caste-based wages, under which NREGS workers are paid based on whether they belong to a Scheduled Caste, Scheduled Tribe, or Others.
  • It wants government to revert back to the earlier system by which a single Fund Transfer Order was generated without “any sort of segregation on the basis of caste”.
  • Create caste rift: NREGS workers are part of the “economically weak populace and can come from any religion/caste, [and] creation of such payment system wherein one specific community is preferred over the other solely on the ground of caste will only give rise to resentment and create rift among the beneficiaries of MGNREGA”

 

What is the caste-based payment system?

  • Under the new system, if 20 individuals (say, six SCs, four STs and 10 others) work together at a site under MG-NREGA, a single muster roll would be issued, but payment would be done by issuing three separate Fund Transfer Orders (FTOs), one for each of the three categories.
  • It came into force on April 1, 2021.
  • Beneficiaries in the ‘Others’ category, which includes the ‘General’ and Other Backward Classes (OBC) categories, especially complained of delays.

 

Why was the system of caste-based wage payment introduced?

According to the Ministry, the system of category-wise payment of wages was introduced to “accurately reflect on the ground flow of funds to various population groups”. Last October, a process of “streamlining” of the new system was taken up.

 

About MGNREGA:

The scheme was introduced as a social measure that guarantees “the right to work”. The key tenet of this social measure and labour law is that the local government will have to legally provide at least 100 days of wage employment in rural India to enhance their quality of life.

Key objectives:

  1. Generation of paid rural employment of not less than 100 days for each worker who volunteers for unskilled labour.
  2. Proactively ensuring social inclusion by strengthening livelihood base of rural poor.
  3. Creation of durable assets in rural areas such as wells, ponds, roads and canals.
  4. Reduce urban migration from rural areas.
  5. Create rural infrastructure by using untapped rural labour.

The following are the eligibility criteria for receiving the benefits under MGNREGA scheme:

  1. Must be Citizen of India to seek NREGA benefits.
  2. Job seeker has completed 18 years of age at the time of application.
  3. The applicant must be part of a local household (i.e., application must be made with local Gram Panchayat).
  4. Applicant must volunteer for unskilled labour.

Key facts related to the scheme:

  1. The Ministry of Rural Development (MRD), Govt of India is monitoring the entire implementation of this scheme in association with state governments.
  2. Individual beneficiary-oriented works can be taken up on the cards of Scheduled Castes and Scheduled Tribes, small or marginal farmers or beneficiaries of land reforms or beneficiaries under the Indira Awaas Yojana of the Government of India.
  3. Within 15 days of submitting the application or from the day work is demanded, wage employment will be provided to the applicant.
  4. Right to get unemployment allowance in case employment is not provided within fifteen days of submitting the application or from the date when work is sought.
  5. Social Audit of MGNREGA works is mandatory, which lends to accountability and transparency.
  6. The Gram Sabha is the principal forum for wage seekers to raise their voices and make demands.
  7. It is the Gram Sabha and the Gram Panchayat which approves the shelf of works under MGNREGA and fix their priority.

Insta Links:

Prelims Link:

  1. Under MGNREGA, what are the roles of Gram Sabha, Gram Panchayat, States, State Food Commission, Centre?
  2. What is caste based payment system?
  3. What is Wage employement?
  4. Who conducts social audit?

Mains Link:

Discuss the key features and significance of MGNREGA. What are the recent concerns regarding the implementation of the scheme? (15M)

Sources: Indian Express