Take a look at the essential events, concepts, terms, quotes, or phenomena every day and brush up your knowledge. Here’s your knowledge nugget for today on MGNREGS.
(Relevance: Government policies and schemes are an important part of the UPSC CSE syllabus, and previous years’ questions highlight their significance. In this regard, knowing about the schemes that are in the news becomes important for the UPSC exam.)
Why in the news?
The Union Finance Ministry has capped spending under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) at 60% of its annual allocation for the first half of Financial Year (FY) 2025-26. There was no such spending limit until now. Civil society groups and MGNREGS worker unions have raised concerns about the move. In this context, let’s know about the MGNREGS and concerns associated with spending limit.
Key Takeaways :
1. MGNREGS is the world’s largest social security programme aimed at enhancing livelihood security and reducing rural poverty. It is based on the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA, 2005).
2. The MGNREGA recognises employment as a statutory right. The Act signified a critical shift from this being a negative right under Article 21 of the Constitution (which mandated that the state must not interfere with your livelihood unreasonably) to a positive statutory obligation on the government to provide employment on demand.
3. It guarantees 100 days of employment in a year to rural households whose adult members volunteer to do unskilled manual work.
4. The act provides a legally-backed guarantee for any rural adult to get work within 15 days of demanding it; thereby serving as an effective social safety net during times of economic distress. Moreover, at least one third of MGNREGA beneficiaries have to be women.
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5. Notably, while Section 3 (1) of the MGNREGA provides for “not less than one hundred days” work per rural household in a financial year, it has become de facto upper limit as the NREGA software does not allow data entries for employment above 100 days to a household in a financial year unless specifically requested by the state/Union Territory.
6. However, in some cases, the government allows an additional 50 days of wage employment (beyond the stipulated 100 days). For instance, every Scheduled Tribe household in a forest area is entitled to get 150 days’ work under MGNREGS, provided that such families have no other private property except for the land rights granted under the Forest Right Act, 2016.
7. Besides, the government, under Section 3(4) of the MGNREGA, can also provide an additional 50 days of unskilled manual work in a financial year, over and above the 100-day limit in rural areas where a drought or any natural calamity (as per the Ministry of Home Affairs) has been notified.
Issues with MGNREGS expenditure cap
1. The MGNREGS has been brought under the Monthly Expenditure Plan/Quarterly Expenditure Plan (MEP/QEP), a spending control mechanism introduced by the Finance Ministry in 2017. MGNREGS was thus far exempt from MEP/QEP on account of being demand-driven.
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2. There are some issues with this expenditure cap, such as:
(i) Issue of fluctuating demand: By design, MGNREGS acts as a buffer for rural citizens, especially during times of lean harvests, freak weather events, and rural distress. Work demand under the scheme fluctuates throughout the year due to a number of reasons, primarily agricultural activities and weather patterns.
MGNREGS work demand is highest between April and June, and picks up again after the kharif sowing season in September. But weather abnormalities such as delayed rains can lead to high MGNREGS work demand even in July or August. In 2023, for instance, low rainfall led to 20% higher work demand than usual in July and August, with Karnataka in particular spending more than 70% of the annual MGNREGS budget within six months due to extreme drought conditions. The expenditure cap does not take into account these contingencies.
(ii) Question of legality: There is also a legal issue. Social security and welfare in India is implemented either via schemes designed and executed by the government of the day (for instance, PM Kisan Samman Nidhi or the LPG scheme), or through schemes based on specific legislation which establish certain programmes as statutory rights, like MGNREGS (based on MGNREG Act, 2005) or the Public Distribution System (based on National Food Security Act, 2013).
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The former can, and often are, altered, discontinued, or repackaged when a new government comes to power. For the latter, while the government does have the power to determine the modalities of implementing legislation, this power is conferred by the legislature and is limited in its scope. The 60% spending cap ordered by the Finance Ministry makes it virtually impossible to realise an entitlement that is legally guaranteed under the MGNREGA once the ceiling is reached.
BEYOND THE NUGGET: Gandhi’s Philosophy in Government Schemes
Over the past years, both central and state governments have undertaken various projects, schemes, regulations, and acts to fulfil the vision of Mahatma Gandhi. Let’s know how MGNREGA, Swachh Bharat Mission and Make in India embody Gandhi’s philosophy.
1. Swachh Bharat Mission: Mahatma Gandhi emphasised on swachhta as which ensures healthy life and society. For Gandhi, the drive for cleanliness in society was an integral part of the process in bringing about a casteless and free society. “Everyone is his own scavenger,” said Gandhi, reiterating the fact that the need for making cleanliness a personal responsibility was key to removing untouchability. Sanitation was also considered a necessity by Gandhi in order to remove the label attached to Indians being in need for the West’s civilising mission.
Swaraj can only be had by clean, brave people,” wrote Gandhi in an article titled “Our insanitation”.
Keeping this in mind, the Indian government launched the Swachh Bharat Mission on October 2, 2014. The mission covers all rural and urban areas. The urban component of the mission is implemented by the Ministry of Housing and Urban Affairs, and the rural component by the Ministry of Drinking Water and Sanitation.
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2. MGNREGA: It embodies Gandhi’s belief in uplifting rural areas. This flagship programme provides economic security to rural households and enhances their purchasing power through promoting self-sufficiency in villages.
3.Make in India: Gandhi spoke about “swadeshi” during the freedom struggle. Today, in the era of globalization, the “Make In India” initiative by the government aims to boost manufacturing in India and establish the country as a global manufacturing hub. This initiative is based on Gandhi’s idea of self-reliance and swadeshi.
Government schemes, from cleanliness to food security, education, and universal banking, are all in the spirit of Gandhi.
POST READ QUESTION
Consider the following statements regarding Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS):
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1. The government has capped spending under the MGNREGS at 60 per cent of its annual allocation for the first half of the financial year 2025–26.
2. The Finance Ministry has directed the Ministry of Rural Development (MoRD) to include MGNREGS under the Monthly/Quarterly Expenditure Plan (MEP/QEP) framework.
3. Till now, the scheme has operated as a demand-driven programme with 40 per cent mandatory capping on the spending limit.
How many of the statements given above are correct?
(a) Only one
(b) Only two
(c) All three
(d) None
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