Assessment of MGNREGA

• In the financial year 2015-16, Rs.42,084 crore was spent on MGNREGA.
• Tripura was able to provide 95 days of employment on average.
• Manipur and Goa were at the lower end, providing 16 and 18 days of employment, respectively.
• Last financial year, only 40 per cent of the wages were paid within the stipulated time of 15 days. Manipur stood out in this case with 82 per cent of wages being paid within 15 days while Meghalaya was only able to pay wages for 4 per cent of the people on time.
• Work completion rate refers to the number of works completed compared to works started, in percentage terms.
• Mizoram performed best in this case with a 92 per cent work completion rate.
• Tripura, Haryana, Madhya Pradesh, Himachal Pradesh also had work completion rates of above 80 per cent.
• Arunachal Pradesh was at the bottom at just 20 per cent work completion rate.
• Mizoram was a close second with a score of 26.3. Chhattisgarh, Goa, Meghalaya and Punjab all ranked second from the bottom with a score of 12.7. Andhra Pradesh and Jharkhand were two major States with a high ranking.
• West Bengal, Bihar and Uttar Pradesh were major States with a low score of 14.
• The Centre seems committed to MGNREGA. About 2 per cent of the Union Budget or 0.3 per cent of the GDP is allocated to the scheme.
• Ensuring that this amount reaches the people who opt to work, while creating durable rural assets, is important.
• The ranking also recognises States that are performing well, and can be used to allocate funds and resources in a targeted manner.

About this index:
There are three performance indicators are selected to rank the States: average days of employment per household, percentage wages paid within the promised 15 days of enlisting to work, and the work completion rate. Each indicator measures the implementation of MGNREGA in the State on an important output. Collectively the three indicators capture the key aspects of MGNREGA implementation, namely, employment generation, wages paid in time, and assets created as promised.
About MGNREGA
MGNREGA, which is the largest work guarantee programme in the world, was enacted in 2005 with the primary objective of guaranteeing 100 days of wage employment per year to rural households. This scheme aims at addressing causes of chronic poverty through the ‘works’ (projects) that are undertaken, and thus ensuring sustainable development. Also, in this scheme there is an emphasis on strengthening the process of decentralisation through giving a significant role to Panchayati Raj Institutions (PRIs) in planning and implementing these works.
Key features:
Legal right to work: Unlike earlier employment guarantee schemes, the Act provides a legal right to employment for adult members of rural households. At least one third beneficiaries have to be women. Wages must be paid according to the wages specified for agricultural labourers in the state under the Minimum Wages Act, 1948, unless the central government notifies a wage rate (this should not be less than Rs 60 per day). At present, wage rates are determined by the central government but vary across states, ranging from Rs 135 per day to Rs 214 per day.
Time bound guarantee of work and unemployment allowance: Employment must be provided with 15 days of being demanded failing which an ‘unemployment allowance’ must be given.
Decentralised planning: Gram sabhas must recommend the works that are to be undertaken and at least 50% of the works must be executed by them. PRIs are primarily responsible for planning, implementation and monitoring of the works that are undertaken.
Work site facilities: All work sites should have facilities such as crèches, drinking water and first aid.
Transparency and accountability: There are provisions for proactive disclosure through wall writings, citizen information boards, Management Information Systems and social audits. Social audits are conducted by gram sabhas to enable the community to monitor the implementation of the scheme.
Funding: Funding is shared between the centre and the states. There are three major items of expenditure – wages (for unskilled, semi-skilled and skilled labour), material and administrative costs. The central government bears 100% of the cost of unskilled labour, 75% of the cost of semi-skilled and skilled labour, 75% of the cost of materials and 6% of the administrative costs.
MGNREGA was implemented in phases, starting from February 2006, and at present it covers all districts of the country with the exception of those that have a 100% urban population. The Act provides a list of works that can be undertaken to generate employment related to water conservation, drought proofing, land development, and flood control and protection works.

By: Vishal