• UGI USER
  • Aug 05, 2024
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MGNREGS: STATES FALL BEHIND IN PAYING UNEMPLOYMENT AID

Syllabus:

GS-2:

  • Issues relating to Poverty
  • Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.

Focus:

Recent reports indicate that states have significantly fallen behind in disbursing unemployment allowances under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), with only ₹90,000 released in 2023-24. This shortfall highlights issues in the implementation and reporting of the scheme, reflecting rural economic distress.

source:slideshare
Understanding  the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) Scheme:

  • Launch: 2005 by the Ministry of Rural Development.
  • Purpose: Provides legal guarantee for 100 days of employment per financial year to adult members of rural households willing to do unskilled manual work at minimum wage.
  • Active Workers: 14.32 crore (2023-24).

Key Features:

  • Legal Guarantee: Rural adults can request work and must be provided within 15 days; if not, an unemployment allowance is given.
  • Women’s Priority: At least one-third of beneficiaries must be women.
  • Social Audit: Mandatory audit of all MGNREGA works (Section 17).

Implementation:

  • Agency: Ministry of Rural Development (MRD), Government of India, in collaboration with state governments.

Objectives:

  • Economic Improvement: Enhances purchasing power of rural people, primarily providing semi-skilled or unskilled work.
  • Poverty Alleviation: Aims to reduce income disparity between rich and poor.

Achievements (2022-23):

  • Households Benefited: 11.37 crore.
  • Person-Days Employment: 289.24 crore.
  • Women: 56.19%.
  • Scheduled Castes (SCs): 19.75%.
  • Scheduled Tribes (STs): 17.47%.

About Section 7: Unemployment Allowance under MGNREGA

  • Eligibility: Applicants not provided employment within 15 days are entitled to an unemployment allowance.
  • Allowance Rate: No less than ¼ of wage rate for first 30 days, and ½ thereafter.
  • Cessation Conditions: Payment ends if:
  • Directed to report for work,
  • Employment period ends without participation,
  • Household receives 100 days of work,
  • Household earnings equal 100 days’ wages.
  • Disbursement: Managed by Programme Officer or authorised local authority.
  • Payment Timeline: Must be paid within 15 days of becoming due.
  • Procedure: State Government may set payment procedures.

Low Disbursal of Unemployment Allowance:

  • Minimal Payments in 2023-24: Only ₹90,000 was released as unemployment allowance by various states in 2023-24, compared to ₹7.8 lakh in 2022-23.
  • Chronic Issue: Over the years, the disbursal of unemployment allowances has been consistently low, with no payments made by any state in 2019-20.
  • Limited State Participation: Only six states paid the unemployment allowance in 2022-23 and 2023-24, highlighting the lack of widespread implementation.
  • Legal Mandate: According to MGNREGA, workers are entitled to a daily unemployment allowance if not provided work within 15 days of application.
  • Survey Findings: The Economic Survey 2024 pointed out that these figures do not accurately reflect the true demand for work and the current rural economic distress.

Reporting and Accountability Issues:

  • Inadequate Reporting: Work demand is only reported when employment is provided, skewing the data on unmet demand.
  • State Liability Avoidance: States may underreport work demand to save on their liability towards unemployment allowance.
  • Administrative Deficiencies: The unemployment allowance clause is underutilised due to inefficiencies in the administration.
  • Receipt of Demand Registration: Many MGNREGS job card holders do not receive receipts for their demand registration, affecting their ability to claim the allowance.
  • Standing Committee Findings: The Parliamentary Standing Committee on Rural Development highlighted the need for the Centre to address these issues with the states at the highest level.

State-Level Challenges:

  • Antipathy or Inefficiency: Block-level administration’s inefficiency or antipathy often prevents workers from receiving their demand registration receipts.
  • Under-Budgeting: Chronic under-budgeting for the scheme by the Centre leaves state governments squeezed between beneficiaries and funding limitations.
  • Few States Disbursing Allowance: In the two financial years before 2022-23, only a handful of states disbursed the unemployment allowance.
  • State Accountability: The unemployment allowance is designed to hold states accountable for providing work, but it is not effectively enforced.
  • MKSS Insights: Activists from Mazdoor Kisan Shakti Sangathan emphasise that administrative deficiencies are a key reason for the low figures of unemployment allowance.

Administrative Challenges:

  • Lack of Infrastructure: Many rural areas lack the necessary administrative infrastructure to effectively manage and monitor MGNREGS implementations, such as digital record-keeping systems.
  • Training Deficiencies: Inadequate training of block-level functionaries hampers efficient demand registration and disbursal of allowances.
  • Bureaucratic Delays: Slow bureaucratic processes lead to significant delays in the processing of unemployment allowances.
  • Corruption: Corruption and misuse of funds at various administrative levels further exacerbate the problem of low disbursal.
  • Accountability Mechanisms: Weak accountability mechanisms fail to hold officials responsible for non-compliance with MGNREGA mandates.

Impact on Rural Livelihoods:

  • Economic Distress: Inadequate implementation of unemployment allowances adds to the economic distress faced by rural workers, particularly during periods of job scarcity.
  • Livelihood Insecurity: The failure to provide timely unemployment allowances undermines the livelihood security that MGNREGS aims to ensure.
  • Migration: Lack of local employment opportunities and financial support forces rural workers to migrate to urban areas in search of work.
  • Poverty Cycle: Inconsistent income from MGNREGS contributes to the ongoing cycle of poverty in rural areas.
  • Social Inequality: The uneven implementation of the scheme across states leads to social inequality, with some regions receiving better support than others.

Recommendations and Way Forward:

  • Centre’s Role: The Centre should engage with states and Union Territories to ensure statutory duties are fulfilled.
  • Administrative Reforms: Improving block-level administration efficiency can ensure better registration and disbursal of allowances.
  • Increased Budget Allocation: Adequate budgeting for MGNREGS is crucial to address the financial constraints faced by states.
  • Real-Time Demand Registration: Implementing real-time work demand registration can provide a more accurate picture of the unmet demand.
  • Policy Enforcement: Stronger enforcement of the legal mandates under MGNREGA is necessary to ensure accountability and fair distribution of unemployment allowances.

Conclusion:

Despite its noble objectives, the implementation of MGNREGS faces significant challenges, particularly in the disbursal of unemployment allowances. Addressing administrative deficiencies, ensuring accurate reporting, and holding states accountable are essential steps towards fulfilling the scheme’s promise of social security and employment for rural workers.

Source: The Hindu

Mains Practice Question:

Analyse the challenges faced in the disbursal of unemployment allowances under MGNREGS. Suggest measures to improve the implementation and ensure accountability in providing social security to rural workers. (250 words)

Associated Article:

https://universalinstitutions.com/decentralize-mgnregs-for-better-implementation/