The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has long been a cornerstone of India’s efforts to promote rural employment and reduce poverty. However, the global COVID-19 pandemic threw unprecedented challenges at the country, leaving millions of rural workers in a state of crisis. To mitigate the economic impact of the pandemic, the Indian government introduced several measures, leveraging the MGNREGA framework to provide immediate relief to the rural population.
COVID-19 Relief Measures Under MGNREGA
On March 26, 2020, India's Finance Minister, Nirmala Sitharaman, announced several relief measures under MGNREGA. These initiatives were aimed at alleviating the financial stress faced by rural workers due to the 21-day nationwide lockdown, which had an estimated economic cost of ₹9 lakh crore.
1. Wage Hike for MGNREGA Workers: One of the key announcements included a wage hike for workers under MGNREGA. Each worker was to receive an average increase of ₹2,000. This increment was intended to cushion the financial blow of the pandemic and the subsequent lockdowns that halted employment opportunities for millions of rural workers.
2. Direct Benefit Transfer for Vulnerable Groups: To further support vulnerable groups, it was announced that three crore senior citizens, persons with disabilities, and widows would receive a one-time additional amount of ₹1,000, disbursed in two installments over three months via Direct Benefit Transfer (DBT). This initiative aimed to provide quick financial relief to these disadvantaged populations, ensuring their sustenance during the pandemic.
3. Allocation for Healthcare and Testing: In addition to direct relief to workers, the government allocated ₹31,000 crore for medical testing, screening, and improving healthcare facilities to address the pandemic. This included provisions for those financially affected by the virus, ensuring that the rural population had access to essential health services during this time of crisis.
Historical Context of MGNREGA
MGNREGA is rooted in a long history of rural employment schemes in India. The initiative can be traced back to 1991, when the government led by P.V. Narasimha Rao introduced the Employment Assurance Scheme. This scheme aimed to:
- Generate employment for agricultural laborers during the lean season.
- Promote infrastructure development.
- Enhance food security.
Over time, the Employment Assurance Scheme evolved, merging with the Food for Work Programme in the early 2000s. This merger laid the foundation for the launch of MGNREGA in 2005, a landmark initiative aimed at transforming rural employment in India.
Objectives of MGNREGA
MGNREGA stands apart from earlier employment schemes due to its unique, grassroots-driven approach. The primary objectives of MGNREGA are:
- To provide 100 days of guaranteed wage employment to unskilled laborers in rural areas.
- To enhance economic security and reduce poverty.
- To curb the migration of labor from rural to urban areas by providing local employment opportunities.
A critical aspect of MGNREGA is its demand-driven model, meaning that employment is provided to those who request it. If the government fails to provide work or delays payments, legal provisions allow workers to file appeals. The scheme is primarily funded by the central government, which bears the cost of unskilled labor and a portion of material expenses for public works.
Key Features of MGNREGA
Several key features of MGNREGA have contributed to its success in transforming rural employment and boosting local economies:
1. Gram Panchayat Control: MGNREGA empowers Gram Panchayats to take a lead role in planning and executing public works. This decentralization strengthens Panchayati Raj Institutions and ensures that development projects are locally relevant.
2. Increased Job Creation: Since its implementation, the scheme has led to a 240% increase in jobs in the last decade. This surge in employment has played a pivotal role in enhancing the economic empowerment of rural India, reducing wage exploitation, and bridging the gender pay gap.
As of 2020-21, over 14.88 crore job cards have been issued, with 9.3 crore active job cards. Moreover, 28.83 crore workers have been employed under the scheme, of which 14.49 crore remain active.
3. Transparency and Accountability: One of the cornerstones of MGNREGA is its focus on transparency. The scheme incorporates operational guidelines to ensure compliance at all levels. Gram Sabhas are responsible for monitoring work, conducting social audits, and addressing grievances related to wage delays or lack of employment opportunities.
Roles and Responsibilities in MGNREGA
1. Role of Gram Sabha and Gram Panchayat:
- Gram Sabha: The Gram Sabha plays a vital role in listing public works projects and monitoring their execution within the Panchayat’s jurisdiction. It serves as a platform for social audits and resolving workers' grievances.
- Gram Panchayat: The Gram Panchayat handles the job application process, registration, issuance of MGNREGA job cards, and allocation of work within 15 days. It also prepares an annual report detailing the scheme’s achievements and holds Rozgar Diwas in each ward once a month.
2. Role of State Governments: State governments have a crucial role in implementing MGNREGA. Key responsibilities include:
- Formulating rules and establishing the State Employment Guarantee Council (SEGC).
- Creating the State Employment Guarantee Fund (SEGF) to support the scheme financially.
- Appointing staff, such as the Gram Rozgar Sahayak and Project Officers (POs), at various levels to ensure the effective execution of MGNREGA projects.
Challenges During the Pandemic
Despite these relief measures and institutional structures, the pandemic exacerbated several pre-existing challenges within MGNREGA.
1. Wage Payment Delays: A significant concern was the delay in wage payments. Workers often had to wait for weeks or even months to receive their wages, causing immense financial distress during the pandemic.
2. Insufficient Work and Fund Allocation: Many workers reported insufficient availability of work, with some states unable to allocate the required funds for MGNREGA projects. The West Bengal government, for instance, faced criticism for delays in releasing funds for MGNREGA wages.
3. Technological Challenges: The introduction of the National Mobile Monitoring System (NMMS) app for attendance tracking and the use of Aadhaar-based payment systems (ABPS) created additional hurdles. Workers, especially in rural areas with limited access to technology, found it difficult to comply with these requirements, leading to wage delays and other complications.
Way Forward: Strengthening MGNREGA Post-Pandemic
1. Enhancing Social Audits: Rather than complicating workers' lives with new technological requirements, there is a need to strengthen social audits. This would ensure transparency and reduce corruption without overburdening rural workers, particularly women who already face multiple challenges.
2. Improving Fund Management: Better fund management is essential to ensure timely payments and the smooth execution of public works projects. State and central governments must coordinate effectively to release funds promptly, particularly in times of crisis like the pandemic.
3. Addressing Corruption: Addressing instances of fund misuse and corruption within MGNREGA is critical. Holding officers accountable for any mismanagement through legal action can improve the scheme’s credibility and effectiveness.
4. Increasing Inclusivity: To improve the participation of women and marginalized communities, it is vital to raise awareness about MGNREGA and make the scheme more inclusive. This will help these vulnerable groups gain access to employment opportunities and enhance their economic security.
Conclusion
The MGNREGA played a crucial role in supporting India’s rural population during the COVID-19 pandemic, offering a lifeline to millions of workers affected by lockdowns and economic slowdowns. Despite the challenges, the scheme remains a robust tool for promoting rural employment, reducing poverty, and ensuring livelihood security.
Going forward, addressing the scheme’s operational issues, such as payment delays and technological barriers, will be essential in ensuring that MGNREGA continues to serve as a reliable safety net for India’s rural population. Strengthening the scheme post-pandemic will not only support immediate recovery but also build resilience against future economic shocks.
