NEW DELHI: The work generated under flagship job scheme MGNREGA in the last financial year was less than 2023-24, but still above the pre-pandemic level that is viewed as the reference point for normal demand for distress labour.
In 2024-25, the job scheme recorded just over 288 crore persondays of work, and the figure on March 31 will be revised upwards with the updating of the data by April-end. Still, it will be much below the 312 crore persondays generated in 2023-24.
However, the work under the job scheme in the previous two years is much above the 265 crore persondays generated in 2019-20, the year before the Covid pandemic.
In 2020-21, a halt to economic activities in the wake of the pandemic and a nationwide lockdown sent the rural populace to MGNREGS work sites in hordes, and the demand for work went through the roof. The work generated that year recorded an all-time high of around 389 crore persondays. The return of migrant workers back to their home states was another reason for high work demand under the scheme.
While the demand for work under the job scheme has come down since, it is still to reach the normal levels before the burst of the pandemic. The higher work demand has been widely viewed as a sign of rural distress , as traditional employment centres took time to return to their full capacity.
The fall in work generated in 2024-25 as compared to 2023-24 can be seen as further improvement in rural distress, as govt has repeatedly claimed in recent months.
But experts working on the scheme argue that depressed budget has played a role in controlling the demand for work. The rural development ministry has kept the budget for MGNREGS at around Rs 86,000-89,000 crore over the last two years. While the scheme is demand-driven and govt is bound to provide funds to meet the expenditure incurred above the initial budgetary allocation, it is argued that lower budget in the initial announcement results in state govts and district officials taking a cue and depressing the demand through delays - a reason why non-governmental experts advocate higher allocations in the budget without waiting for "revised estimates".
In 2025-26, the allocation of Rs 86,000 would be much lesser as the ministry has a deficit of around Rs 29,000 crore from 2024-25, a small part of which could be the liability of states.
In 2024-25, the job scheme recorded just over 288 crore persondays of work, and the figure on March 31 will be revised upwards with the updating of the data by April-end. Still, it will be much below the 312 crore persondays generated in 2023-24.
However, the work under the job scheme in the previous two years is much above the 265 crore persondays generated in 2019-20, the year before the Covid pandemic.
In 2020-21, a halt to economic activities in the wake of the pandemic and a nationwide lockdown sent the rural populace to MGNREGS work sites in hordes, and the demand for work went through the roof. The work generated that year recorded an all-time high of around 389 crore persondays. The return of migrant workers back to their home states was another reason for high work demand under the scheme.
While the demand for work under the job scheme has come down since, it is still to reach the normal levels before the burst of the pandemic. The higher work demand has been widely viewed as a sign of rural distress , as traditional employment centres took time to return to their full capacity.
The fall in work generated in 2024-25 as compared to 2023-24 can be seen as further improvement in rural distress, as govt has repeatedly claimed in recent months.
But experts working on the scheme argue that depressed budget has played a role in controlling the demand for work. The rural development ministry has kept the budget for MGNREGS at around Rs 86,000-89,000 crore over the last two years. While the scheme is demand-driven and govt is bound to provide funds to meet the expenditure incurred above the initial budgetary allocation, it is argued that lower budget in the initial announcement results in state govts and district officials taking a cue and depressing the demand through delays - a reason why non-governmental experts advocate higher allocations in the budget without waiting for "revised estimates".
In 2025-26, the allocation of Rs 86,000 would be much lesser as the ministry has a deficit of around Rs 29,000 crore from 2024-25, a small part of which could be the liability of states.
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