Context: Recent data from a Lib Tech study reveals significant deletions from the MGNREGS registry, largely attributed to the Aadhaar-Based Payment System (ABPS). This trend has left many rural workers ineligible, limiting their access to guaranteed employment.
Key Data Points:
- Worker deletions and additions (April-September 2024):
- 84.8 lakh workers removed, with Tamil Nadu (14.7%) and Chhattisgarh (14.6%) having the highest rates of deletion.
- Historical deletions:
- Over eight crore workers were removed during FY 2022-23 and FY 2023-24.
- In Andhra Pradesh, 15% of deletions were found to be wrongful, per Lib Tech’s ongoing studies.
- Aadhaar-Based Payment System (ABPS) impact:
- ABPS eligibility requires Aadhaar linkage to the job card and bank account, with name matching.
- 27.4% of all registered workers (6.7 crore) and 4.2% of active workers (54 lakh) remain ineligible for ABPS.
- Decline in person days:
- There was a 16.6% decline in person days generated, dropping to 153 crore days.
Relevance to UPSC syllabus:
- GS II (Governance & Social Justice): Highlights the implementation challenges of Aadhaar in welfare schemes and social security measures.
- GS III (Economic Development): Relevant to discussions on rural employment schemes, labor force dynamics, and economic migration.
- Essay Paper: Serves as a case study on digital governance and financial inclusion challenges in India’s welfare schemes.
