The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which was put into effect in 2005, continues to be an essential part of India’s rural development programs by giving millions of people guaranteed jobs. Recent developments in the program demonstrate both its ongoing significance and the challenges it faces.
Increased Work Demand
The demand for work under MNREGA increased significantly in November 2024, with 18.36 million families looking for job-a 4% rise over the same period the previous year. In line with the periodic return of workers after the planting season in agricultural fields, this is the largest increase since July 2024. The program’s significance as a safety net during hard times is highlighted by the spike in demand, particularly for rural households who rely on casual labor. But just around 75,000 crore of the ₹86,000 crore allotted for the fiscal year 2024-2025 have been paid out, which raises worries about a possible cash shortage
Challenges with Aadhaar-based Payments
The required adoption of the Aadhaar-based payment system (ABPS) for MNREGA wages was a noteworthy milestone in 2023. Millions of vulnerable workers have been left out of the program, according to critics. According to reports, problems with Aadhaar connection were preventing payments for 12.7% of active workers and 34.8% of registered workers as of December 2023. The Congress party has been adamantly against the action, claiming that the government is “weaponizing technology” in order to deny underprivileged populations adequate salaries.According to the Ministry of Rural Development, ABPS decreases rejections and delays, increasing payment efficiency.Aadhaar-linked and conventional account- based systems do not, however, significantly differ in the time it takes to process payments, according to tests like the one conducted by Biotech India.
State-Specific Issues: West Bengal
MNREGA payments have been withheld in West Bengal by the central government due to anomalies in the program’s operation. Workers and state authorities have protested and demanded changes to the move, arguing that the delays have negatively impacted rural households who depend on these earnings. The deadlock emphasizes the necessity of increased openness and collaboration between the federal and state administrations.
Budgetary Pressures
MNREGA is still having financial difficulties. Although it plays a vital role in creating jobs in rural areas, the funding allotted frequently. does not meet the real demand. The remaining money might not be enough to cover the program’s needs through March 2025, given that Rs 75,000 crore has already been spent in the current fiscal year. This Increases the likelihood that wages won’t be paid, which might further strain the economy in rural areas.
Technology and Implementation Challenges
Other technical interventions, such digital attendance and the anticipated drone surveillance of businesses, have also been adopted by the government. These policies, which are meant to increase accountability and transparency, have drawn criticism because they are likely to put more obstacles in the way of employees. monitoring instance, there have been reports of delays and technical issues with the National Mobile Monitoring System (NMMS) monitoring attendance, particularly in places with inadequate digital access.
The Way Forward
Current events underscore the twin difficulties of broadening the program’s audience and enhancing its effectiveness. Policymakers need to make sure that technological advancements don’t alienate workers and address worries about exclusion brought on by Aadhaar-based payments. Furthermore, timely money allocations and budget adjustments are essential to preserving the program’s legitimacy and efficacy.
Conclusion
For millions of rural familles, MNREGA continues to be a lifeline, particularly during economic downturns. However, resolving implementation issues, guaranteeing sufficient funds, and upholding its inclusive nature are necessary for its success. The program’s future will continue to be the focus of heated political and public discussion while India resolves these problems.
