{"id":144731,"date":"2021-11-02T19:20:32","date_gmt":"2021-11-02T13:50:32","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=144731"},"modified":"2021-11-02T19:20:32","modified_gmt":"2021-11-02T13:50:32","slug":"nrega-low-funds-caste-based-payment-delays-and-implications-for-the-economy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/nrega-low-funds-caste-based-payment-delays-and-implications-for-the-economy\/","title":{"rendered":"NREGA: low funds, caste-based payment delays, and implications for the economy"},"content":{"rendered":"\n
What is the news?<\/span><\/h5>\n

Two organizations, <\/span>People\u2019s Action for Employment Guarantee (PAEG<\/strong>) and <\/span>LibTech India,<\/strong> monitored the government MGNREGA programme and concluded a report known as MGNREGA Tracker.\u00a0<\/span><\/p>\n

Note<\/strong>: This is the fourth such \u201ctracker\u201d on MGNREGA.<\/p>\n

What is MGNREGA?<\/strong><\/h5>\n\n\n\n
Must Read<\/strong>:\u00a0MGNREGA: Issues and Significance \u2013 Explained, pointwise<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The MGNREGA can play a critical role in reviving the Indian economy, especially rural India, as it puts the money directly in the hands of workers.<\/p>\n

What are the main findings of the report?<\/strong><\/h5>\n
\"MGNREGA\"
Source: Indian Express<\/figcaption><\/figure>\n

Inadequate Allocation<\/strong>: The total budget allocation for MGNREGA this year was 34% less than the budget of the last financial year (2020-21).<\/p>\n

Total utilisation of funds in a short time<\/strong>: Every year Budget allocation has to manage the previous year\u2019s arrears or unpaid dues. And for this year, the entire budget allocated has been spent in just six months.<\/p>\n\n\n\n
Must read<\/strong>: No money left in MGNREGA coffers; 21 States in the red<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Job Demand:<\/strong> The demand for MGNREGA jobs is down 25% from last year. But it is still higher than the pre-Covid period.<\/p>\n

Demand suppression: <\/strong>Inadequate budget allocation has led to reduced demand for MGNREGA work. This is because people seeking MGNREGA work cannot afford to wait for payments for long and the\u00a0provisions of payment have not been followed on the ground.<\/p>\n

Note<\/strong>: Work should be provided within 15 days of demanding work and workers should be paid within 15 days of completion of work.<\/p>\n

Caste issues<\/strong>: This year government passed an order asking states to give 3 FTOs (Funds Transfer Orders) 1. For \u201cSC\u201d (Scheduled Castes), 2. For \u201cST\u201d (Scheduled Tribes) and 3. For \u201cOther\u201d categories.<\/p>\n

The Survey found that after the Caste-based circular, workers belonging to the \u201cothers\u201d categories, which constitutes 87% of all workers, ended up facing much longer delays in payments.<\/p>\n

Source:<\/strong> This post is based on the following articles<\/p>\n