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Recently, the Parliamentary Standing Committee (PSC) on Rural Development and Panchayati Raj highlighted several issues within the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The committee recommended reforms to address these challenges, especially concerning wage rates, workdays, payment systems, and infrastructure.

Key Challenges in MGNREGS Implementation:

• Wages Not Aligned with Inflation:
  • MGNREGA wage rates have failed to keep pace with inflation, diminishing the purchasing power of rural workers. This discourages workers from completing the full 100 workdays.
  • The wage guarantee of 100 days per household often falls short, especially during times of natural calamities or post-pandemic recovery.
• Revision of Permissible Works:
  • The list of allowable work under MGNREGA is outdated and doesn't cover all rural needs, such as flood protection or land erosion management. Delayed revisions limit its effectiveness in addressing region-specific challenges.
• Delayed Payment of Wages:
  • Issues like Aadhaar-based payment system (ABPS) glitches, inactive Aadhaar details, or frozen bank accounts often lead to delayed wage payments.
  • The delay in wages undermines the scheme's goal of providing livelihood support.
• Unemployment Allowance:
  • Those who apply for work but are not provided employment within 15 days are entitled to a daily unemployment allowance. However, this allowance is rarely paid, and when it is, the amounts are insufficient.
• Weak Social Audits:
  • Social audits are a vital mechanism to ensure transparency and accountability. However, in the 2020-21 fiscal year, only 29,611 Gram Panchayats out of a total were audited, pointing to the weak social audit system.
• Lack of Ombudsman:
  • Despite the provision for 715 ombudsmen, only 263 have been appointed. This reduces the oversight and accountability of the scheme.

Recommendations for MGNREGS Reform by the PSC:

• Revision of Wage Rates:
  • Link MGNREGA wages to an inflation index, ensuring wages reflect the rising cost of living in rural areas.
  • The base year (2009-2010) should be updated to align with current inflation trends.
• Increase Days of Work:
  • The PSC recommended increasing the guaranteed workdays from 100 to 150 days. This will provide better livelihood security, especially in times of economic distress.
• Improvement in Payment Mechanisms:
  • The committee recommended maintaining alternative payment systems alongside ABPS to prevent wage delays.
  • A streamlined process should be put in place to ensure timely wage disbursement, reducing bureaucratic hurdles.
• National Mobile Monitoring System (NMMS):
  • The committee stressed the importance of training programs to help beneficiaries effectively use the NMMS.
  • It also suggested retaining alternative attendance methods to avoid exclusion due to technological barriers. NMMS helps enhance transparency and accountability by tracking attendance and work progress.
• Sufficient Fund Allocation:
  • The committee emphasized the need for adequate financial allocations for MGNREGS to make it more effective in providing livelihood security to rural households.

Additional Context and Statistics:

• In 2024-25, the average wage increase under MGNREGA was just Rs 28/day.
• The MGNREGA wage increase for 2023-24 ranged from 2%-10%.
• The Consumer Price Index for Agricultural Labour (CPI-AL) is used to determine wage rates, although Dr. Nagesh Singh Committee (2017) recommended using the CPI Rural instead.

About the Parliamentary Standing Committee on Rural Development & Panchayati Raj (PSC):

• Established: August 5, 2004.
• Jurisdiction: The committee oversees the Ministry of Rural Development and the Ministry of Panchayati Raj.
• Composition: 31 members – 21 from Lok Sabha and 10 from Rajya Sabha.
• Functions:
  • Reviews Demands for Grants and reports.
  • Examines Bills referred by the Speaker or Chairman.
  • Reviews the annual reports of relevant ministries.
  • Considers national policy documents.

About MGNREGA:

• Launched: 2005 by the Ministry of Rural Development.
• Objective: Provides 100 days of unskilled manual work at minimum wages for rural households annually.
• Key Features:
  • Legal Guarantee: Work must be provided within 15 days of request.
  • Unemployment Allowance: If work isn't provided within 15 days, beneficiaries are entitled to a daily allowance.
  • Women-Focused: At least one-third of beneficiaries are women.
  • Social Audits: Mandated by the Gram Sabha for all projects under the scheme.