MGNREGA Unemployment Benefits Disbursement

• 14 Feb 2024

Source: DTE

Why in News?

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA),2005 has been a crucial lifeline for rural workers in India. However, a recent report by the Parliamentary Standing Committee on Rural Development and Panchayati Raj has shed light on a concerning issue regarding the implementation of the scheme.

What are the Key Highlights of the Report?

• Limited Distribution of Benefits:
  • The report reveals that out of 7,124 eligible workers in the last five years, only 258 received benefits, accounting for approximately 3% of the total.
    • According to Section 7(1) of MGNREGA, 2005, individuals not employed within 15 days are entitled to a daily unemployment allowance.
• State-specific Data:
  • State governments are responsible for providing unemployment allowance based on their economic capacity.
  • Karnataka reported the highest number of eligible workers (2,467) but none received benefits.
  • Rajasthan ranked second, with 1,831 eligible workers, of which only nine received benefits.
    • Bihar, West Bengal, Jharkhand, and Uttar Pradesh also showed poor distribution records.
  • Despite eligibility, workers in these states either received inadequate benefits or none at all.
• Pending Compensation for Delayed Wages:
  • The committee was informed that from the financial year 2018-19 until November 21, 2024, a total of over Rs 13 crores was sanctioned for compensation, and only around Rs 10 crores were paid, leaving a significant amount pending.
    • The responsibility of paying interest lies with the state government, according to the Department of Rural Development.
  • The MGNREGA states that if wages are not paid within 15 days of the closure of the muster roll, workers are entitled to compensation for the delay. The compensation is 0.05% of the unpaid wages per day of delay beyond the sixteenth day of closure of the muster roll.
• Recommendations by the Committee:
  • The committee recommended coordinated efforts between the Central Rural Development Department and state governments to ensure proper disbursement of benefits.
  • Measures should be taken to address the non-payment of unemployment benefits.

Mahatma Gandhi National Rural Employment Guarantee Act

• MGNREGA is one of the largest work guarantee programs in the world launched in 2005 by the Ministry of Rural Development.
• MGNREGA is a demand-based wage employment scheme that provides at least 100 days of guaranteed wage employment to each family per fiscal year to improve the livelihood security of families in rural areas of the country.
  • It provides livelihood security, which means that rural households have alternative sources of income when better employment opportunities are unavailable.
  • There are 14.32 crore registered Job Cards, with 68.22% active Job Cards, and a total of 25.25 crore workers, of which 56.83% are active workers.
• Achievements of MGNREGA in 2022-23:
  • 11.37 crore households availed employment.
  • 289.24 crore person-days employment has been generated out of which:
    • 56.19% were for women
      • 19.75% were for Scheduled Castes (SCs)
      • 17.47% were for Scheduled Tribes (STs).

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UPSC Civil Services Examination, Previous Year Question (PYQ)

Q. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”? (2011)

(a) Adult members of only the scheduled caste and scheduled tribe households
(b) Adult members of below poverty line (BPL) households
(c) Adult members of households of all backward communities
(d) Adult members of any household

Ans: (d)