Critically examine the performance of MGNREGS in India
Answers
MGNREGA was started with the objective of providing 100 days compulsory employment to one member of a poor family. The performance of this scheme holds immense significance for policy design:-
Negatives:-
1) The assets made by MGNREGA are of poor quality, thus leading to wastage of reources.
2) People who are involved in MGNREGA are less willing to enroll for skill development courses, Thus, MGNREGA hurts achievement of Demographic dividend.
3) It has increased the labour costs which is hurting agriculture, already reeling under pressure from increase of other inputs.
4) Poor design of the scheme increased corruption at the lowest levels of administration.
Positives:
1) At a minute cost (0.3% ) of GDP , the scheme provides employment to 50mn people, which in itself is a virtue.
2) Most of those getting employment are women or Dalits, thus leading to inclusive development. It was for the first time that women got employment at such a large scale. This has positive social effect on status of women.
3) The scheme led to an increase in rural demand. This positively impacted entire economy.
4) The scheme led to a call for transparency from the lowest echelons of society.
5) It is a kind of insurance (as the wages are guarenteed) against distress migration. During the times of the drought, governments have scaled up the scheme.
Thus, MGNREGA is a highly potent and required scheme especially after the release of SECC data, which shows high level of deprivation across rural India. There can be improvement in design though like skilling the MGNREGA workers, proper scheduling of the scheme so that agriculture is not affected and better designs for building durable assets.