Why is it in the News?

As per the Periodic Labour Force Survey (PLFS), published by the Ministry of Statistics and Programme Implementation, the female Labour Force Participation Rate has increased in the country in recent years.

News Summary:

• Recent data highlights a significant surge in women's engagement in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), reaching its highest point in a decade.
  • In the fiscal year 2022-23, women accounted for 57.47% of person-days, showcasing a notable increase from the previous year's 54.82%.
• Analyzing the broader landscape, statistics from the NREGS portal for the period up to December 24, 2023, reveal that out of a total of 238.62 crore person-days, women contributed 141.37 crore person-days, constituting an impressive 59.25%.
• The Periodic Labour Force Survey (PLFS), conducted by the Ministry of Statistics and Programme Implementation, provides further insights into the evolving dynamics of female labor force participation in the country.
  • Notably, the Female Labour Force Participation Rate (LFPR) has witnessed a substantial uptick in recent years, particularly in rural areas.
  • In the rural context, the LFPR soared to 30.5% in 2022-23 (July-June), a significant leap from 18.2% recorded in 2017-18.
• Complementing this positive trend, the female unemployment rate has experienced a noteworthy decline, dropping to 1.8% in 2022-23 from 3.8% in 2017-18.
  • These statistics collectively underscore a positive trajectory in women's participation and employment, signaling progressive changes in the socio-economic landscape.

What is Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)?

• The National Rural Employment Guarantee Act (NREGA) came into effect in September 2005.
  • In 2009, an amendment renamed the Act to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
• Mandate: MGNREGA is designed with the primary objective of offering a minimum of 100 days of guaranteed wage employment within a financial year to every rural household whose adult members willingly engage in unskilled manual labor.
  • The operationalization of this guarantee is facilitated through the Mahatma Gandhi National Rural Employment Guarantee Scheme (Mahatma Gandhi NREGS).
• Funding Structure: As a Centrally-Sponsored Scheme, MGNREGS receives joint financial backing from both the Central government and the State governments.
  • This collaborative funding approach underscores the shared commitment to addressing rural employment challenges.
• Administrative Oversight: The Ministry of Rural Development is the overseeing authority responsible for the implementation and management of MGNREGS, emphasizing the central role of rural development in realizing the objectives of this significant initiative.

Key Characteristics of the Program:

• Enshrined Legal Entitlement: MGNREGA establishes a legal assurance for wage employment, granting every rural household the right to enroll in the program. Notably, the scheme mandates that at least one-third of its beneficiaries must be women. Legal provisions are in place to address situations where work is not provided on demand or when there are delays in wage payments, ensuring accountability and fair compensation.
• Demand-Driven Structure: This initiative operates on a demand-driven framework, responding to the explicit requests for work from wage-seekers. The provision of employment is triggered by the expressed demand, creating a responsive system that aligns with the needs of the community.
• Decentralized Implementation Model: State governments wield the authority to establish rules and modify relevant state schemes, fostering a decentralized mode of implementation. Gram Panchayats (GPs) play a crucial role by executing at least 50% of the work in terms of cost. Decision-making processes, including plans for works, site selection, and the order in which each task is initiated, occur in open assemblies of the Gram Sabha, ensuring community involvement and transparency.
• Parliamentary Accountability: An Annual Report, compiled by the Central Employment Guarantee Council (CEGC), detailing the outcomes of MGNREGA, is mandated to be presented annually to the Parliament by the Central Government. The CEGC, established under Section 10 of MGNREGA, is chaired by the Union Minister for Rural Development.
• Nationwide Coverage: MGNREGA extends its coverage across the entire country, with the exception of districts that boast a one hundred percent urban population, reflecting its comprehensive reach and impact.

Key Accomplishments of the MGNREGA Scheme:

Achievements in 2022-23:

• Employment opportunities were provided to 11.37 crore households.
• A total of 289.24 crore person-days of employment were generated, with specific allocations as follows:
  • 56.19% for women
  • 19.75% for Scheduled Castes (SCs)
  • 17.47% for Scheduled Tribes (STs).

What are the Challenges in Implementing the Scheme?

• Delay and Insufficiency in Funds Disbursement: Many states have not adhered to the mandated 15-day wage disbursement timeline under MGNREGA.
  • Moreover, workers face a lack of compensation for delayed wage payments, transforming the scheme into a supply-based program.
  • Consequently, worker interest in participating has waned.
  • Evidence, including a Ministry of Finance admission, points to insufficient funds as a key factor behind delays in wage payments.
• Caste-Based Disparities: Notable discrepancies in payment delays exist along caste lines.
  • While 46% of payments to Scheduled Caste (SC) workers and 37% to Scheduled Tribe (ST) workers were completed within the stipulated seven days, non-SC/ST workers experienced a dismal 26% compliance.
  • The adverse effects of caste-based disparities are particularly pronounced in economically challenged states like Madhya Pradesh, Jharkhand, Odisha, and West Bengal.
• Ineffective Role of Panchayati Raj Institutions (PRIs): Gram Panchayats, lacking autonomy, struggle to implement the act efficiently. Limited decision-making authority hampers their effectiveness in executing MGNREGA.
• High Number of Incomplete Projects: Delays in project completion and irregular project inspections pose challenges to MGNREGA.
  • Additionally, concerns regarding the quality of work and asset creation persist within the scheme.
• Fabrication of Job Cards: Issues related to the existence of fake job cards, inclusion of fictitious names, missing entries, and delays in updating job cards contribute to administrative challenges within the program.

Way Forward

• Enhanced Coordination among Government Departments: Improved collaboration is essential among various government departments and the development of a streamlined mechanism for the allocation and measurement of work.
  • This will contribute to a more efficient and transparent execution of projects.
• Addressing Gender Pay Disparities: Efforts should be directed towards rectifying discrepancies in payouts, particularly addressing the gender pay gap.
  • Currently, women in the sector earn, on average, 22.24% less than their male counterparts, emphasizing the need for gender-inclusive policies and fair remuneration practices.
• Prompt Commencement of Public Works: State governments should ensure the prompt initiation of public works in every village.
  • Workers arriving at worksites should be swiftly provided with employment opportunities, minimizing delays and optimizing the scheme's effectiveness.
• Empowering Gram Panchayats: Gram Panchayats should be equipped with ample resources, authority, and responsibilities to sanction works, meet demands for employment, and authorize timely wage payments.
  • This empowerment is crucial to eliminate delays in payments and enhance the efficiency of grassroots administration.
• Convergence with Other Government Initiatives: MGNREGA should be strategically aligned and integrated with other government schemes, such as the Green India initiative and Swachh Bharat Abhiyan.
  • This convergence will maximize the impact and effectiveness of these programs, fostering a synergistic approach towards holistic rural development.