The Mahatma Gandhi National Rural Employment Guarantee Act, which is previously known as the National Rural Employment Guarantee Act was introduced on 7th September 2005. The act is for generating employees and social security in India. The act aims to cover all districts of India except the district which have a 100% urban population.

MNREGA Highlight 2020

• According to an announcement by Finance Minister Nirmala Sitharaman on March 26th, 2020, the workers under the MGNREGA would get an increment of Rs. 2000 each on an average.
• It was another benefit was announced that three crore senior citizens, persons with disabilities, and widows will get a one-time additional amount of Rs 1,000 in two installments through DBT (Direct Benefit Transfer) over three months.
• This announcement for making an initiative towards the loss caused by the Covid-19 outbreak.
• Funds of Rs 31,000 crore were provided for medical testing, screening, and providing better healthcare facilities to the person who had affected financially by the Covid-19 outbreak.

Objectives of MGNREGA

The objectives of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) as mentioned below:

• It provides 100 days of guaranteed wage employment to rural unskilled labor
• The main aim of the NREGA scheme is to provide a source of livelihood for the economically weaker section of the society.
• It helps to grow economic security
• It takes initiative to decrease the number of migration of labor from rural to urban areas
• MGNREGA scheme helps proactively the weaker section of society.
• The scheme will strengthen the Panchayati Raj across India.

Important features of the scheme

• Under this scheme almost all the control is given to the Gram Panchayats for managing public works, strengthening Panchayati Raj Institutions. Gram Sabhas can accept or reject recommendations from Intermediate and District Panchayats.
• The scheme provides operational guidelines and ensures compliance and transparency at all levels.

New features

• MGNREGA introduce new schemes that were different from the old approach for generating employees.
• The programs under this scheme are demand-driven and provide legal provisions are taken for appeal in the case, if work is not provided or payments are delayed.
• The fund for this scheme is given by the central government which bears the full cost of unskilled labor and 75% of the cost of the working material is undertaken by this law.
• The central and state governments are responsible for the audit of the works undertaken under this act through annual reports prepared by CEGC (Central Employment Guarantee Council) and the SEGC (State Employment Guarantee Councils).
• These reports need to be presented by the incumbent government for the legislature.

New laws under MNREGA

• Though the scheme was implemented a few years ago, the number of jobs has increased by 240% in the past 10 years.
• The scheme has been implementing successfully for enhancing economic empowerment in rural India.
• The scheme is to help overcome the exploitation of labor.
• The scheme has decreased wage volatility and the gender pay gap in labor.

Challenges for MNREGA

• Lack of Finance:
  • In this highest allocation is made for MNREGA. But 0.47% of the GDP becomes lower than the World Bank’s recommendations of 1.7% of GDP for optimizing the program.
  • Due to lack of funds, state governments find it difficult to meet the demand for employment under MGNREGA.
• Delay in Payment of wages: Most states have failed to distribute payment within 15 days as mentioned by MGNREGA and workers are not compensated by delayed payment.
  • The workers had started to lose interest in working under it.
• Important Role of PRI: The gram panchayats failed to implement this act in an effective and efficient manner.
• Huge Number of Incomplete works: Huge number of works is incomplete under MGNREGA and inspection is irregular.

FAQs

MCQs

1. What is the primary focus of MNREGA?

A) Employment Guarantee in Urban Areas
B) 100 days of employment in rural areas
C) Only providing infrastructure in urban areas
D) Agricultural subsidies

2. Which of the following is NOT a benefit of MNREGA?

A) Reduction in migration to urban areas
B) Empowerment of women
C) Creation of permanent jobs in cities
D) Building of rural infrastructure

3. How does MNREGA ensure the timely payment of wages?

A) Through monthly payments
B) Through the Electronic Fund Management System (eFMS)
C) By cash disbursement
D) Through third-party agencies

4. Which of the following is a primary challenge in the implementation of MNREGA?

A) Excessive funding
B) Corruption and mismanagement
C) Lack of community involvement
D) Overpayment of wages

5. Which of the following is a key objective of MNREGA?

A) To provide only food security
B) To reduce urban migration
C) To promote industrialization
D) To build high-rise buildings

GS Mains Questions and Model Answers

Q1: Analyze the impact of MNREGA on rural poverty and employment in India.

Answer: MNREGA has had a significant impact on reducing rural poverty and providing employment in India. By guaranteeing 100 days of wage employment, it has created economic security for millions of rural households, particularly in areas where agricultural work is seasonal or unavailable. The scheme has empowered women by providing them with employment opportunities and a source of income. Additionally, it has helped in the creation of rural infrastructure, such as roads and water conservation projects, which have long-term benefits for local communities. However, the implementation of the scheme faces challenges such as delays in wage payments and corruption, which need to be addressed for its full potential to be realized.

Q2: Discuss the role of MNREGA in promoting sustainable development in rural India.

Answer: MNREGA plays a crucial role in promoting sustainable development in rural India by integrating environmental conservation with economic development. The creation of water conservation structures, afforestation, and soil improvement projects contributes to the long-term sustainability of rural ecosystems. Moreover, the scheme's focus on rural infrastructure, such as building roads, rural connectivity, and irrigation systems, enhances agricultural productivity and overall rural development. These efforts ensure that rural communities are not only provided with immediate employment but also benefit from long-lasting environmental improvements.

Q3: Evaluate the effectiveness of MNREGA in reducing distress migration from rural to urban areas.

Answer: MNREGA has been effective in reducing distress migration by providing rural households with a guaranteed source of income through employment in rural areas. By offering employment opportunities close to home, MNREGA helps to mitigate the economic pressures that often drive people to migrate to urban areas in search of work. The creation of durable assets, such as roads and irrigation systems, also enhances rural development, making these areas more self-sufficient and less dependent on migration for economic survival. However, the success of MNREGA in reducing migration varies across regions, and improvements in infrastructure and access to services are needed to further address this issue.

Previous Year Questions on MNREGA

1. UPSC CSE Prelims 2020:

Question: What is the primary objective of the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA)?

A) To provide urban employment
B) To create jobs for rural women
C) To provide a guarantee of 100 days of wage employment in rural areas
D) To promote the construction of high-rise buildings

Answer: (C)

Explanation: The primary objective of MNREGA is to provide a guarantee of 100 days of wage employment to rural households, particularly in manual labor, thereby improving livelihoods and reducing poverty.

2. UPSC CSE Mains 2019 (GS Paper 2):

Question: Analyze the challenges and opportunities of MNREGA in promoting rural development in India.

Answer: MNREGA has brought significant opportunities for rural development by providing employment, improving infrastructure, and reducing migration. However, challenges such as delayed payments, corruption, and inefficiency in implementation need to be addressed. Strengthening monitoring mechanisms, ensuring transparency, and improving coordination between the central and state governments can enhance the effectiveness of MNREGA in achieving its goal of rural development.