House Panel Recommendations on MGNREGA

Context: A Parliamentary Standing Committee has recommended making Aadhaar-Based Payment System (ABPS) optional for MGNREGA workers due to issues of exclusion and payment delays.

House Panel Recommendations on MGNREGA:

Findings:

  • ABPS issues: Many genuine workers were excluded due to Aadhaar-job card discrepancies.
  • Delayed Payments:23,446.27 crore pending in wage and material components (27.26% of budget).
  • Fund Stagnation: Suspension of MGNREGA funds causing distress migration and rural project delays.

Recommendations:

  • Make ABPS Optional: Allow alternative payment methods to ensure timely wage disbursal.
  • Increase Workdays: Extend guaranteed employment from 100 to 150 days per year.
  • Timely Fund Release: Clear ₹23,446.27 crore pending liabilities and release West Bengal’s dues (except for disputed year).
  • Revise Wage Calculation: Move away from CPI-Agricultural Laborers Index for fair wage revision.
  • Discourage Dilution of Land Acquisition Act: Prevent states from weakening land rights protections.

Relevance in UPSC Syllabus

  • GS Paper 2 (Governance, Welfare Schemes): MGNREGA as a social security program and challenges in wage disbursement.
  • GS Paper 3 (Indian Economy, Rural Development): Role of MGNREGA in employment generation and rural infrastructure development.
  • GS Paper 1 (Society, Poverty, and Social Issues): Impact of delayed payments on rural livelihoods and distress migration.