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The Journey of MGNREGA: Changing Approaches and Challenges

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Part of the book series: India Studies in Business and Economics ((ISBE))

Abstract

Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS or MGNREGA) remains the most important and unique strategy for creating rural employment in India. Thereby, assessing the programme taking into the emerging context of rural India in 2015–16 as done in this chapter provides us valuable information for addressing alarming level of inequity and poverty situation in rural India. Unfortunately, lack of a rigorous analysis of the interrelationships between employment, poverty alleviation and fostering equitable development amongst the varied social groups, over time and space, has thus made it difficult to understand the developmental dynamics of MGNREGA. In this regard, this paper addresses some of the gaps observed in implementation of MGNREGS in India. The empirical analysis is based on data from the official websites of ministry of rural development, MGNREGA implementing authority, from 2006–07 to 2014–15. While the MGNREGA implemented in 2006 is a significant modification over the Employment Guarantee Programme (EGS) implemented in Maharashtra (i.e. MEGS) since early 1970s, we have also compared impacts and outcomes of the MGNREGS with that of MEGS, and provided the results in a comparative perspective. MGNREGA in its present format, though had significantly contributed towards improving the status of the rural households, the continuity of the programme in future may face several challenges. While the very nature and content of the programme had undergone significant modifications and adaptations over the past one decade of its existence, the future potential of the programme may also depend upon how its implementation process would be adapted as per the changing dynamics of rural economies, the socio-economic and demographic characteristics of the rural households.

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Notes

  1. 1.

    Performance of MGNREGA has been far from satisfactory in recent years in terms of the average number of days of employment generated per household, percentage of actual expenditure made against total funds available and the percentage of works completed (Jha and Gaiha 2012). Instances are many where the works undertaken for asset creation remained incomplete along with poor quality of such assets created (GoI 2014; ILO 2014; Drèze and Khera 2009).

  2. 2.

    At the all-India level, it was found that the relatively deprived social groups, STs and SCs, have been left out of the growth process and the other social groups (OSGs) perform the best. The finding on increasing disparity between the poorest and richest states was corroborated by the estimates of: (i) coefficient of variation, which increased from 17.59 to 30.78% for mean [per capita consumption expenditure]; and (ii) index of dispersion, which increased from 17.63 to 32.98% for rural mean per capita consumption across major states between 1993–94 and 2011–12 (Suryanarayana and Das).

  3. 3.

    Under MGNREGA, employment was provided to 5.62 Crore Households and it also resulted in an average increase in household income by around Rs. 6,000 per year. As part of financial inclusion, 9.29 crore bank/postal accounts are opened and the scheme also resulted in the increase of purchasing power in rural areas (Niti Aayog 2015).

  4. 4.

    Based on a study in a Gujarat village (Nana Kotda) in South Gujarat, Hirway et al. (2010) reported that the expenditure on various NREG works had generated multiplier impact on the rural economy, even though the impact was low due to the various leakages in implementation.

  5. 5.

    Ministry of Rural Development (2016a).

  6. 6.

    Ministry of Rural Development (2016b).

  7. 7.

    The NCAER study was quite unique in terms of its coverage and methodology adopted. It surveyed 26,000 rural households that were interviewed twice, once in 2004–05 before MGNREGA’s passage and again in 2011–12, after the programme had been extended nationwide.

  8. 8.

    The objective of this skill certification and reward scheme is to enable and mobilise a large number of Indian youth to take up outcome-based skill training and become employable and earn their livelihoods.

  9. 9.

    The ‘Make in India’ initiative launched by the Government of India to promote manufacturing in 25 sectors of the economy shall lead to job creation and consequently generate need for skilled manpower.

  10. 10.

    The surge in inflation during recent years had curtailed considerably the magnitude of real benefits to be gained from the NREG (Kannan and Jain 2013: 51).

  11. 11.

    The MoRD moved a Cabinet note to expand the scope of MGNREGA by extending the number of annual work entitlement days from 100 to 150 in areas to be declared drought-affected by the respective state governments. This comes in the wake of a prospective monsoon failure for a second consecutive year as forecasted by India Meteorological Department (IMD). Expansion of the work entitlement days by 50 stems from the concern that there would be greater demand for wage-related work in drought-affected districts. Further, it will be applicable to only those households which complete 100 days of work.

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Appendices

Annex 1: Total Rural Household, Total Employment/Worked in MGNREGA and MGNREGA HH as a % of Total Rural HH (2006–07 to 2014–15)

State name

Total rural households (2006–07)

Total employment provided (2006–07)

MGNREGA HH in a state as a % of total rural HH (2006–07)

Total rural households (2007–08)

Total employment provided (2007–08)

MGNREGA HH in a state as a % of total rural HH (2007–08)

Total rural households (2008–09)

Total employment provided (2008–09)

MGNREGA HH in a state as a % of total rural HH (2008–09)

Total rural households (2009–10)

Total employment provided (2009–10)

MGNREGA HH in a state as a % of total rural HH (2009–10)

Andhra Pradesh

13,396,092

2,161,395

16.13

13,559,706

4,803,892

35.43

13,725,317

5,699,557

41.53

13,892,951

6,158,493

44.33

Assam

4,773,807

792,270

16.60

4,896,726

1,402,888

28.65

5,022,810

1,877,393

37.38

5,152,140

2,137,270

41.48

Bihar

14,464,464

1,688,899

11.68

14,915,181

3,859,630

25.88

15,379,943

3,318,698

21.58

15,859,187

4,127,330

26.02

Chhattisgarh

3,780,387

1,375,802

36.39

3,890,785

2,284,963

58.73

4,004,406

2,270,415

56.70

4,121,345

2,025,845

49.15

Gujarat

6,344,093

226,269

3.57

6,427,751

290,691

4.52

6,512,511

850,691

13.06

6,598,389

1,596,402

24.19

Haryana

2,781,576

50,765

1.83

2,832,140

70,869

2.50

2,883,623

162,932

5.65

2,936,042

156,406

5.33

Himachal Pradesh

1,190,481

109,417

9.19

1,213,943

271,099

22.33

1,237,868

445,713

36.01

1,262,265

497,336

39.40

Jammu and Kashmir

1,346,486

121,328

9.01

1,385,543

127,368

9.19

1,425,733

197,975

13.89

1,467,088

320,715

21.86

Jharkhand

4,203,737

1,394,108

33.16

4,303,968

1,679,868

39.03

4,406,589

1,474,073

33.45

4,511,657

1,702,599

37.74

Karnataka

7,310,833

1,011,021

13.83

7,433,792

549,994

7.40

7,558,818

896,212

11.86

7,685,948

3,535,281

46.00

Kerala

4,559,690

99,107

2.17

4,474,561

185,392

4.14

4,391,020

692,015

15.76

4,309,039

955,976

22.19

Madhya Pradesh

9,412,822

2,866,349

30.45

9,724,920

4,346,916

44.70

10,047,365

5,207,665

51.83

10,380,502

4,714,591

45.42

Maharashtra

12,151,339

0

0.00

12,356,942

474,695

3.84

12,566,024

905,788

7.21

12,778,644

535,994

4.19

Odisha

7,317,374

1,394,169

19.05

7,465,755

993,360

13.31

7,617,146

1,199,006

15.74

7,771,606

1,398,300

17.99

Punjab

3,064,349

31,648

1.03

3,120,971

49,690

1.59

3,178,638

149,902

4.72

3,237,371

271,941

8.40

Rajasthan

8,184,202

1,175,172

14.36

8,431,002

2,170,460

25.74

8,685,244

6,373,093

73.38

8,947,153

6,522,264

72.90

Tamil Nadu

8,884,689

683,481

7.69

9,009,873

1,234,818

13.71

9,136,820

3,345,648

36.62

9,265,556

4,373,257

47.20

Uttar Pradesh

22,875,790

2,573,245

11.25

23,412,079

4,096,408

17.50

23,960,941

4,336,466

18.10

24,522,669

5,483,434

22.36

Uttarakhand

1,299,914

134,312

10.33

1,324,037

189,263

14.29

1,348,607

298,741

22.15

1,373,632

522,304

38.02

West Bengal

12,477,409

3,083,757

24.71

12,733,804

3,843,335

30.18

12,995,468

3,025,854

23.28

13,262,509

3,479,915

26.24

Total for 20 states:

149,819,536

20,972,514

14.00

152,913,477

32,925,599

21.53

156,084,892

42,727,837

27.37

159,335,695

50,515,653

31.70

State name

Total rural households (2010–11)

Total employment provided (2010–11)

MGNREGA HH in a state as a % of total rural HH (2010–11)

Total rural households (2011–12)

Total households worked (2011–12)

MGNREGA HH in a state as a % of Total Rural HH (2011–12)

Total rural household (2012–13)

Andhra Pradesh

14,062,633

6,200,423

44.09

14,234,387

2,914,172

20.47

14,408,239

Assam

5,284,801

1,798,372

34.03

5,420,877

1,349,078

24.89

5,560,457

Bihar

16,353,364

4,738,464

28.98

16,862,940

1,769,469

10.49

17,388,394

Chhattisgarh

4,241,699

2,485,581

58.60

4,365,568

2,725,027

62.42

4,493,054

Gujarat

6,685,400

1,096,223

16.40

6,773,558

822,080

12.14

6,862,879

Haryana

2,989,414

235,281

7.87

3,043,756

277,748

9.13

3,043,756

Himachal Pradesh

1,287,142

444,247

34.51

1,312,510

505,467

38.51

1,338,378

Jammu and Kashmir

1,509,643

499,434

33.08

1,553,433

431,146

27.75

1,598,493

Jharkhand

4,619,231

1,987,360

43.02

4,729,369

1,574,657

33.30

4,842,133

Karnataka

7,815,215

2,224,468

28.46

7,946,657

1,652,116

20.79

8,080,309

Kerala

4,228,589

1,175,816

27.81

4,149,641

1,416,441

34.13

4,072,167

Madhya Pradesh

10,724,684

4,407,643

41.10

11,080,278

3,879,959

35.02

11,447,662

Maharashtra

12,994,862

451,169

3.47

13,214,738

1,504,521

11.39

13,438,334

Odisha

7,929,199

2,004,815

25.28

8,089,987

1,378,597

17.04

8,254,036

Punjab

3,297,189

278,134

8.44

3,358,113

245,453

7.31

3,420,162

Rajasthan

9,216,960

5,859,667

63.57

9,494,903

4,522,234

47.63

9,781,228

Tamil Nadu

9,396,106

4,969,140

52.89

9,528,495

6,343,339

66.57

9,662,750

Uttar Pradesh

25,097,567

6,431,213

25.62

25,685,942

7,327,738

28.53

26,288,111

Uttarakhand

1,399,123

542,391

38.77

1,425,086

469,285

32.93

1,451,531

West Bengal

13,535,037

4,998,239

36.93

13,813,165

5,516,968

39.94

14,097,008

Total for 20 states:

162,667,858

52,828,080

32.48

166,083,403

46,625,495

28.07

169,529,081

State name

Total households worked (2012–13)

MGNREGA HH in a state as a % of total rural HH (2012–13)

Total rural household (2013–14)

Total households worked (2013–14)

MGNREGA HH in a state as a % of total rural HH (2013–14)

Total rural households (2014–15)

Total households worked (2014–15)

MGNREGA HH in a state as a % of total rural HH (2014–15)

Andhra Pradesh

3,318,164

23.03

14,584,214

3,482,604

23.88

14,762,338

3,299,447

22.35

Assam

1,234,828

22.21

5,703,631

1,261,778

22.12

5,850,491

967,179

16.53

Bihar

2,087,564

12.01

17,930,222

2,059,338

11.49

18,488,934

1,035,562

5.60

Chhattisgarh

2,637,699

58.71

4,624,263

2,512,379

54.33

4,759,304

1,748,290

36.73

Gujarat

681,028

9.92

6,953,377

578,674

8.32

7,045,069

513,190

7.28

Haryana

294,142

9.66

3,099,086

324,919

10.48

3,155,421

217,914

6.91

Himachal Pradesh

514,687

38.46

1,364,755

539,223

39.51

1,391,652

452,659

32.53

Jammu and Kashmir

646,516

40.45

1,644,860

657,588

39.98

1,692,571

332,194

19.63

Jharkhand

1,419,072

29.31

4,957,586

1,138,912

22.97

5,075,792

1,111,175

21.89

Karnataka

1,331,967

16.48

8,216,210

1,450,457

17.65

8,354,396

1,093,906

13.09

Kerala

1,526,283

37.48

3,996,139

1,523,863

38.13

3,921,531

1,380,236

35.20

Madhya Pradesh

3,519,283

30.74

11,827,228

2,908,506

24.59

12,219,379

2,794,169

22.87

Maharashtra

1,624,521

12.09

13,665,714

1,143,837

8.37

13,896,941

1,159,693

8.34

Odisha

1,599,276

19.38

8,421,411

1,710,268

20.31

8,592,180

1,469,320

17.10

Punjab

240,191

7.02

3,483,358

412,104

11.83

3,547,721

288,889

8.14

Rajasthan

4,217,342

43.12

10,076,187

3,615,080

35.88

10,380,040

3,686,831

35.52

Tamil Nadu

7,061,409

73.08

9,798,896

6,267,704

63.96

9,936,960

5,657,572

56.93

Uttar Pradesh

4,947,427

18.82

26,904,396

4,994,721

18.56

27,535,130

3,915,533

14.22

Uttarakhand

439,791

30.30

1,478,467

397,482

26.88

1,505,903

455,294

30.23

West Bengal

5,817,331

41.27

14,386,685

6,132,613

42.63

14,682,313

5,120,407

34.87

Total for 20 states:

45,158,521

26.64

173,116,684

43,112,050

24.90

176,794,067

36,699,460

20.76

  1. Source Total Employment provided from MGNREGA Public Portal accessed in February, 2016 www.nrega.nic.in and Rural Households from Census India, 2011
  2. Note Rural Household for 9 years is calculated by calculating CAGR (Compound Annual Growth Rate)

Annex 2: Statewise Participation of Rural Households in MGNREGA Over Time (2006–07 to 2014–15)

 

Categorisation of states based on participation in MGNREGA

Number of states

Rural HH in a state as % of rural HH in 20 states (average for 2006–07 to 2014–15)

HH participating in MGNREGA in a state as a % of total HH participating in MGNREGA in 20 states (2006–07 to 2014–15)

Statewise % Rural HH participating in MGNREGA (average for 2006–07 to 2014–15)

% of persons in poverty in rural areas (2011–12) based on methodology Proposed by Rangarajan Committee

  

4

  

0–14% (Low)

 

1

Punjab

 

2.0

0.5

6.6

7.4

2

Maharashtra

 

8.0

2.1

6.7

22.5

3

Haryana

 

1.8

0.5

6.7

11.0

4

Gujarat

 

4.1

1.8

11.1

31.4

 

Average

   

7.8

 
  

8

  

15–29% (Medium)

 

5

Bihar

 

10.1

6.6

16.7

40.1

6

Odisha

 

4.9

3.5

18.4

47.8

7

Uttar Pradesh

 

15.4

11.9

19.5

38.1

8

Karnataka

 

4.8

3.7

19.5

19.8

9

Kerala

 

2.6

2.4

23.5

7.3

10

Jammu & Kashmir

 

0.9

0.9

24.5

12.6

11

Assam

 

3.3

3.5

26.9

42.0

12

Uttarakhand

 

0.9

0.9

27.4

12.6

 

Average

   

19.8

 
  

5

  

30–44% (High)

 

13

Andhra Pradesh

 

8.6

10.2

30.0

12.7

14

Jharkhand

 

2.8

3.6

32.4

45.9

15

Himachal Pradesh

 

0.8

1.0

32.6

11.1

16

West Bengal

 

8.3

11.0

33.6

30.1

17

Madhya Pradesh

 

6.6

9.3

35.8

45.2

 

Average

   

32.8

 
  

3

  

45% Above (Very high)

 

18

Rajasthan

 

5.7

10.3

45.8

21.4

19

Tamil Nadu

 

5.8

10.7

47.2

24.3

20

Chhattisgarh

 

2.6

5.4

52.4

49.2

 

Average

   

47.6

 
 

Total

20

100

100

  
  1. Source MGNREGA Public Portal accessed in February, 2016 www.nrega.nic.in
  2. Note Poverty Ratio 2011–12 is based on Rangarajan Committee

Annex 3: MGNREGA Households Participation Changes for the Year (2006–07 to 2010–11) and (2011–12 to 2014–15)

Rank

Categorisation of states based on participation in MGNREGA

MGNREGA HH in a state % of total rural HH (average for 2006–07 to 2014–15)

Rank in the first 5 years

Categorisation of states based on participation in MGNREGA

MGNREGA HH in a state % of total rural HH (average for 2006–07 to 2010–11)

Rank in the last 4 years

Categorisation of states based on Participation in MGNREGA

MGNREGA HH in a state % of total rural HH (average for 2011–12 to 2014–15)

 

0–14% (Low)

  

0–14% (Low)

  

0–14% (Low)

 

1

Punjab

6.6

1

Maharashtra

3.8

1

Punjab

8.6

2

Maharashtra

6.7

2

Haryana

4.7

2

Haryana

9.0

3

Haryana

6.7

3

Punjab

4.9

3

Gujarat

9.4

4

Gujarat

11.1

4

Gujarat

12.5

4

Bihar

9.9

      

5

Maharashtra

10.0

 

Average

7.8

 

Average

6.3

 

Average

9.7

 

15–29% (Medium)

  

15–29% (Medium)

  

15–29% (Medium)

 

5

Bihar

16.7

5

Kerala

14.2

6

Karnataka

17.0

6

Odisha

18.4

6

Jammu And Kashmir

17.8

7

Odisha

18.5

7

Uttar Pradesh

19.5

7

Odisha

18.3

8

Uttar Pradesh

20.0

8

Karnataka

19.5

8

Uttar Pradesh

19.1

9

Assam

21.4

9

Kerala

23.5

9

Karnataka

21.7

10

Andhra Pradesh

22.4

10

Jammu & Kashmir

24.5

10

Bihar

23.0

11

Jharkhand

26.9

11

Assam

26.9

11

Uttarakhand

25.0

12

Madhya Pradesh

28.3

12

Uttarakhand

27.4

12

West Bengal

28.4

   
   

13

Himachal Pradesh

28.6

   
 

Average

19.8

 

Average

21.6

 

Average

21.2

 

30–44% (High)

  

30–44% (High)

  

30–44% (High)

 

13

Andhra Pradesh

30.0

14

Assam

31.9

13

Uttarakhand

30.1

14

Jharkhand

32.4

15

Tamil Nadu

32.0

14

Jammu And Kashmir

32.0

15

Himachal Pradesh

32.6

16

Andhra Pradesh

36.5

15

Kerala

36.2

16

West Bengal

33.6

17

Jharkhand

37.4

16

Himachal Pradesh

37.3

17

Madhya Pradesh

35.8

18

Madhya Pradesh

42.8

17

West Bengal

39.7

      

18

Rajasthan

40.5

 

Average

32.8

 

Average

36.55

 

Average

31.82

 

45% Above (Very High)

  

45% Above (Very High)

  

45% Above (Very High)

 

18

Rajasthan

45.8

19

Rajasthan

50.8

19

Chhattisgarh

53.0

19

Tamil Nadu

47.2

20

Chhattisgarh

52.1

20

Tamil Nadu

65.1

20

Chhattisgarh

52.4

      
 

Average

47.6

 

Average

51.25

 

Average

52.63

 

Total

  

Total

  

Total

 
  1. Source MGNREGA Public Portal accessed in February, 2016 www.nrega.nic.in

Annex 4: Normal and Drought Year % Deviation from Normal

State Name

Normal Year

Normal year (rainfall) % Dep

Drought year

Drought Year (rainfall) % Dep

Andhra Pradesh

2010–11

43.6

2006–07

−39.9

Assam

2012–13

−12.6

2014–15

−24.6

Bihar

2007–08

18.8

2012–13

9.8

Chhattisgarh

2013–14

10.7

2009–10

−36.3

Gujarat

2010–11

44.8

2012–13

−40.2

Haryana

2008–09

9.8

2012–13

−100.1

Himachal Pradesh

2013–14

16.4

2009–10

−35.5

Jammu And Kashmir

2013–14

20.0

2009–10

−34.2

Jharkhand

2007–08

5.9

2010–11

−39.2

Karnataka

2009–10

16.1

2012–13

−11.3

Kerala

2007–08

17.2

2012–13

−25.2

Madhya Pradesh

2013–14

36.3

2007–08

−50.1

Maharashtra

2010–11

21.9

2012–13

−11.4

Odisha

2006–07

20.7

2011–12

−33.4

Punjab

2008–09

7.6

2012–13

−20.6

Rajasthan

2013–14

35.9

2009–10

−83.4

Tamil Nadu

2008–09

30.0

2012–13

−27.4

Uttar Pradesh

2013–14

6.8

2014–15

−25.6

Uttarakhand

2010–11

19.4

2009–10

−37.7

West Bengal

2013–14

15.7

2014–15

−16.3

  1. Source India Metrological Department
  2. Note Rainfall of Andhra Pradesh includes Coastal Andhra Pradesh + Telengana + Rayalaseema
  3. Rainfall of Uttar Pradesh includes East Uttar Pradesh + West Uttar Pradesh
  4. Rainfall of Gujarat includes Gujarat Region + Saurashtra & Kutch
  5. Rainfall of West Bengal includes Sub-Himalayan West Bengal + Sikkim + Gangetic West Bengal
  6. Rainfall of Haryana includes Chandigarh + Delhi
  7. Rainfall of Maharashtra includes Madhya Maharashtra + Marathwada + Vidarbha
  8. Rainfall of Madhya Pradesh includes East Madhya Pradesh + West Madhya Pradesh
  9. Rainfall of Rajasthan includes East Rajasthan + West Rajasthan
  10. Rainfall of Karnataka includes Coastal Karnataka + North Interior + South Interior

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Shah, A., Mehta, A.K., Viswanathan, P., Johnson, N. (2018). The Journey of MGNREGA: Changing Approaches and Challenges. In: Bhattarai, M., Viswanathan, P., Mishra, R., Bantilan, C. (eds) Employment Guarantee Programme and Dynamics of Rural Transformation in India. India Studies in Business and Economics. Springer, Singapore. https://doi.org/10.1007/978-981-10-6262-9_13

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