why critics of the mnrega scheme feel that such a scheme could be damaging in the long run by pushing up the minimum wages and increase cost in the agriculture as well as urban areas , adversely effect productivity and also prevent migration of labour besides fuelling inflation
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Economists at SBI on Wednesday pitched for covering employment guarantee workers under provisions of the Minimum Wages Act, pointing out that MGNREGA payments are lower than the basic agricultural wages in some states. In a note that comes after the government upped spends on the Mahatama Gandhi National Rural Employment Guarantee Act (MGNREGA) by Rs 40,000 crore to limit the impact of the lockdown, they also suggested better strategies for making use of the migrant labour which has returned to their villages.
The economists said a comprehensive database of migrants needs to be built up and advocated the use of call data records (CDRs) which will establish their movements back to native lands from the cities to finish this task
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