MAHATMA GANDHI NATIONAL RURAL

EMPLOYMENT GUARANTEE ACT

(MGNREGA): A REALITY OR RHETORIC
By- Jairaj Singh Rathore1

BACKGROUND:

The Constitution of India refers to the Right to Work under the ―Directive Principles of State
Policy‖. Article 39 envisages the state to ensure that citizens, men and women equally have
the right to an adequate means to livelihood. Further, Article 41 emphasizes that the State
within the limits of its economic capacity and development will make effective provision for
securing ‗Right to Work‘. This was to be achieved through a systematic public intervention in
terms of policies and planning popularly known as Five Year Plans. The first Five Year Plan
(1951-56) stressed on full employment with minimum wages to the newly employed.

Though this broad approach has been followed all-through the Five Year Plans, the direct
anti-poverty programmes including employment generation schemes were started from the
Sixth Five Year plan (1982-87) onwards. The major schemes introduced by the Central
Government are: National Rural Employment Programme (NREP) 1980-89; Rural Landless
Employment Guarantee Programme (RLEGP) 1983-89; National Rural Employment
Guarantee Scheme (NREGS) etc.

National Rural Employment Guarantee Scheme (NREGS) is possibly the most ambitious
income security programme for India‘s rural poor in Post Independent India. About 30
percent of Indians are living in absolute poverty but in actual terms it moves up to as much as
77 percent. Most of the vulnerable are from scheduled castes and tribes, the minorities and
other backward classes (OBCs). They also happen to have very low or negligible land
holdings and any other assets to speak of other than their labour power. The rural poor
principally comprise of landless labourers, who are not even assured of finding work on a
daily basis. It is in this context that the NREGS assumes importance since it guarantees 100
days of work to anyone desirous of it at the minimum wage.

1
Jairaj Singh Rathore, a student of University School of Law & Legal Studies, GGS Indraprastha University, Delhi-
110403. E-mail – jairaj.rathore12@gmail.com

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INTRODUCTION:

 The Mahatma Gandhi National Rural Employment Guarantee Act or MGNREGA is

an Indian job guarantee scheme, enacted by legislation on August 25, 2005.

 The scheme provides a legal guarantee for one hundred days of employment in every
financial year to adult members of any rural household willing to do public work-
related unskilled manual work at the statutory minimum wage of Rs.60 per day.

 This act was introduced with an aim of improving the purchasing power of the
rural people, primarily semi or un-skilled work to people living in rural India

 MGNREGA is designed as a safety net to reduce migration by rural poor households

in the lean period through

 The MGNREGA is an important step towards realisation of the right to work. It is

expected to enhance people‘s livelihood security on a sustained basis, by developing
economic and social infrastructure in rural areas.

 MGNREGA is the flagship programme of the UPA Government that directly touches
lives of the poor and promotes inclusive growth.

 The Act aims at enhancing livelihood security of households in rural areas of the
country.

 MGNREGA is the first ever law internationally, that guarantees wage employment at
an unprecedented scale.

 Dr. Jean Drèze, a Belgian born economist, at the Delhi School of Economics, has
been a major influence on this project.

 Aruna Roy was one of the chief campaigners for the original scheme.

OBJECTIVES OF THE ACT:

 Strengthening grassroots processes of democracy

 Increase in the wage employment in rural areas.

 Strengthening the management of natural resource through works that address causes
of poverty like drought, deforestation and soil erosion and so encourage sustainable
development.

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  Infusing accountability and transparency and in governance.

 Strengthening decentralization and deepening processes of democracy by giving a

crucial role to the Panchayati Raj Institutions in planning, monitoring and
implementation.

FEATURES AT HAND:

 First such effort in the world to provide legal guarantee for the Right to Work.

 Covers all districts of the country.

 All rural households in rural areas, whose adult members volunteer to do unskilled
manual work eligible.

 Job card under the Act is the right of every rural household willing to work on
MGNREGA and applies for it.

 Choice of works done through village level plans and 50% or more of work to be
executed by Panchayati Raj institutions.

 One of the most distinguishing features of the MGNREGA is its approach towards
empowering citizens to play an active role in the implementation of employment
guarantee schemes, through gram sabhas, social audit, participatory planning and
other activities.

 Work focuses on areas like water conservation; land development, provision of

irrigation facility on private land of people below the poverty line, rural connectivity
etc.

 Contractors banned in MGNREGA works.

 Payment made through post office and bank accounts.

 Unemployment allowance to be paid if Government unable to provide jobs within 15

days of application.

 All muster rolls put up on the internet.

 Social audit made mandatory.

 The Act mandates 33% participation for women.

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IMPLEMENTATION OF ACT:

The following image shows the key processes in the implementation of MGNREGA:

 Cost sharing: Central Government shares 3/4th of the total cost and the State
Government shares 1/4th.

 Adult members of rural households submit their name, age and address with photo to
the Gram Panchayat.

 The Gram Panchayat registers households after making enquiry and issues a job card.

 The job card contains the details of adult member enrolled and his/her photo.

 Registered person can submit an application for work in writing (for at least fourteen
days of continuous work) either to Panchayat or to the Programme Officer.

 The panchayat/programme officer will accept the valid application and issue dated
receipt of application, letter providing work will be sent to the applicant and also
displayed at panchayat office.

 The employment will be provided within a radius of 5 km: if it is above 5 km extra

wage will be paid.

 If employment under the scheme is not provided within fifteen days of receipt of the
application daily unemployment allowance will be paid to the applicant.

IMPLEMENTATION MECHANISM:

The given chart displays mechanism of implementation and the key bodies and functionaries
that are responsible for the effective implementation of the Act. According to the
MGNREGA Operational Guidelines, the Ministry of Rural Development, Government of
Rural Development, Government of India is the nodal Ministry for the implementation of
MGNREGA. It is required to set up the Central Council which will be responsible for
ensuring timely and adequate resource support to the states.

It will undertake regular review, monitoring and evaluation of processes and outcomes. It will
establish a Management Information System (MIS) to capture and track data on every critical
aspect of implementation, and assess the utilization of resources through a set of performance

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indicators. It will support innovations that help in improving processes towards the
achievement of the objectives of the Act. It will support the use of Information Technology
(IT) to increase the efficiency and transparency of the processes as well as improve interface
with the public. It will also ensure that the implementation of MGNREGA at all levels is
sought to be made transparent and accountable to the public.

Mahatma Gandhi Ministry of Rural Central Employment

National Rural Development (MRD) Guarantee Council
Employment Guarantee (CEGC)
Act Guarantee, 2005
(MGNREGA) of India
State Employment Guarantee State Employment
State Government
Scheme (SEGC) Guarantee Council
(SEGC)

District Panchayat District Programme

Coordinator

Block Panchayat Programme Officer

Gram Panchayat (GP)/ Gram Panchayat &

Implementing Agency (IA) Gram Sabha

Implementation Mechanism

 CENTRAL EMPLOYMENT GUARANTEE COUNCIL (CEGC)

The MGNREGA operational guidelines indicate that the Central Employment

Council (CEGC) will be responsible for advising the Central Government on
MGNREGA-related matters, and the implementation of the Act. It shall prepare
Annual Reports on the implementation of MGNREGA and submit these to the
Parliament.

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 THE STATE GOVERNMENT

As per the MGNREG Act, 2005, the State Government has to formulate a Rural
Employment Guarantee Scheme (REGS), and the Rules relevant to its
implementation, under Section 4 of the Act. It will set up the SEGC (State
Employment Guarantee Council) as stated under Section 12 and also designate an
officer as the State Rural Employment Guarantee Commissioner responsible for
ensuring that all activities required to fulfil the objectives of the act are carried out. It
will ensure that the State Share of the REGS budget is released on time. It will ensure
wide communication of the Scheme and dissemination of information regarding its
implementation. It will ensure all administrative, financial and technical support to the
District Programme Coordinator, Programme Officer, Panchayat Raj Institutions
(PRIs) and all other agencies involved in implementation.

 STATE EMPLOYMENT GUARANTEE COUNCIL (SEGC)

The SEGC is required to advise the State Government on the implementation of the
Scheme, and evaluate and monitor it. It will also decide on the ‗preferred works‘ to be
implemented under REGS, and prepare Annual Reports for submission to the State
Legislature.

 DISTRICT PANCHAYAT

Further the operational guidelines state that the District Panchayat will be responsible
for finalising the District Plans and for monitoring and supervising the REGS in the
District. It can also execute works from among the 50% that are not to be
implemented by the Gram Panchayats. The State Government will designate a District
programme Co-ordinator (DPC), who shall be responsible for the overall co-
ordination and implementation of the Scheme in the District.

 BLOCK LEVEL PANCHAYAT

The Block Panchayat will be responsible for planning at the Block level, and for
monitoring and supervision. It can also be given the responsibility of executing works
from among the 50% that are not to be executed by the Gram Panchayat. A full-time
officer will be appointed as the Programme Officer at the Block level, who shall be
responsible for co-ordinating the works undertaken by the Gram Panchayat and the
implementing agencies at the Block level.

 GRAM SABHA

The Gram Panchayat has a pivotal role in the implementation of REGS as per the
MGNREGA operational guidelines. It is responsible for planning of works,
registering households, issuing job cards, allocating employment, executing 50% of
works, and monitoring the implementation of the Scheme at the village level. The
Gram Sabha should also facilitate the implementation of the Scheme, by acting as a

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 forum for sharing the information about the Scheme, and also in ensuring
transparency and accountability.

FUNDING PATTERN:

The government of India has established a fund called the National Employment
Guarantee Fund, from which grants are released directly to Districts. Revolving funds
are to be set up under REGS at the District, Block and Gram Panchayat levels, with
separate bank accounts being opened for such funds at each level.

Each Rural Employment Guarantee Scheme is required to have the minimum features
specified in Schedule 1 and Schedule 2 of the Act. Section 4 of the Act also provides
that until such a Scheme is notified by the State Government, the Annual or
Perspective Plan of the Sampoorna Grameen Rozgar Yojana (SGRY) or national
Food for Work Programme (NFFWP), whichever is in force is that area, shall be
deemed to be the action plan for the Scheme for the purposes of the Act. These
guidelines have been formulated to facilitate the design and implementation of Rural
Employment Guarantee Schemes. They should be interpreted as a broad operational
framework, around which further provisions may be built, taking into account the
State‘s economic, social and institutional context.

The Act is a Centrally Sponsored Scheme on a cost sharing basis the Centre and the States.
The Central government will bear all costs, other than the following:

 25% of the cost material and wages for semi-skilled/skilled workers;

 Unemployment allowance; and
 Administrative expenses of the State Employment Guarantee Council.

PERMISSIBLE WORKS UNDER MGNREGA 2005:

The intention of the Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA) is to provide a basic employment guarantee in rural areas. The Act
indicates the kinds of works that may be taken up for this purpose. As per Schedule I
of the Act, the focus of the Rural Employment Guarantee Scheme (REGS) shall be on
the following works:

 Water Conservation and water harvesting.

 Drought proofing, including afforestation and tree plantation.
 Irrigation canals including micro and minor irrigation works.
 Irrigation facilities for landowners by households belonging to SC/ST or to land of
beneficiaries of the INDIRA AWAAS YOJANA.
 Renovation of traditional water bodies, including de-sitting of tanks.
 Land development
 Flood control and protection of works, including drainage of water-logged areas.

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  Rural connectivity to provide all weather roads.
 Any other work, which may be notified by the Central government in consultation
with the state governments.

BIGGEST CONTRIBUTION:

Transparency and accountability to the poorest and the weakest is in fact the biggest
potential contribution of the MGNREGA to the entire governance system. The
MGNREGA is an outstanding example of how the RTI Act can be woven into the
fabric of the delivery system and the whole legal and governance paradigm. The
entire expenditure on works and workers — 94 per cent of the total amount — is
required to be put on the website of the MGNREGA, with every transaction revealed
in detail. This can easily be increased to 100 per cent. Using this Management
Information System (MIS), Vijaypura Gram Panchayat in Rajsamand District has
begun to build a Janata Information System (JIS) painted on the walls of government
buildings in the Gram Panchayat. The boards reveal the details of the number of days
of work provided and payments made in the year to every Job Card holder in the
Panchayat. Also painted on the walls are the list of works sanctioned, the expenditure
on labour and material, and item-wise expenditure on material in each work in the
Panchayat, including exactly how many bags of cement, sand and trolleys of stone
were procured, and at what rate in the Gram Panchayat. This is like a web wall which
reveals to every interested visitor all that they want to examine.

LARGER IMPACT:

The MGNREGA is India‘s first law to codify development rights in a legal

framework, and like the RTI, it has begun to set an example in a global context. Apart
from the law, and a set of guidelines, there is a strong and immediate need to
formulate rules to operationalize provisions in the Act; which includes guaranteeing
grievance redressal in seven days, social audit twice a year, and mandatory
transparency and proactive disclosure. Properly incorporated and enforced, a
comprehensive set of operational rules could strengthen the entitlement framework,
fixing responsibility at every level. Once again, it would enable bottom-up pressure
for implementation, which should be matched by a strong political mandate

BIOMETRICS CARDS AND E-ATTENDANCE:

The government is likely to introduce biometrics cards and electronic attendance

systems from next fiscal to plug the leakages in its flagship employment scheme
MGNREGA, even as it looks to step up allocation for the scheme sharply to Rs
45,000crore.―We are looking at biometrics job card system from next financial year
for Mahatma Gandhi National Rural Employment Guarantee Scheme that could even
be fitted with global positioning system,‖ a government official familiar with the
discussions told ET. States such as Rajasthan have already experimented with

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 biometrics card system to prevent leakage and the Centre now is keen to unveil it on
all-India basis

PRAGMATIC APPROACH:

Budget 2010 does have some inkling of pragmatic approach. Mukherjee has done the
right thing by not enhancing the allocation under MGNREGA. In 2009, he made a
budgetary provision of Rs. 39,100 crore, and this year kept it at Rs 40,100 crore. This
is a wise decision considering that MGNREGA is a new scheme, and has a lot of
problems with implementation. Making more allocation gives room for more leakage
and corruption. The finance minister has extended the health insurance cover (that
was initiated last year to BPL families) to also MGNREGA workers who have put in
a minimum of 15 days of labour.

KEY PROCESSES

Application for job card

Issue of job card

Demand for employment

Work allocation

Payment of wages

Selection of works

MGNREGA & UNION BUDGET:

 During 2008-09, NREGA provided employment opportunities for more than 4.47
crore households as against 3.39 crore households covered in 2007-08.

 Govt of India has proposed an allocation of Rs.39,100 crore for the year 2009-10 for
NREGA which marks an increase of 144% over 2008-09 Budget Estimates.

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  Mahatma Gandhi National Rural Employment Guarantee Scheme has completed four
years of implementation during which it has been extended to all districts covering
more than 4.5 crore households. The allocation for MGNREGA has been stepped up
to Rs 40,100 crore in 2010-11.

MONITORING AND EVALUATION IN MGNREGA:

 Ministry has set up a comprehensive monitoring system. For effective monitoring of

the projects 100% verification of the works at the Block level, 10% at the District
level and 2% at the State level inspections need to be ensured.
 In order to optimize the multiplier effects of MGNREGA, the Ministry has set up a
Task Force to look at the possibility of convergence of programmes like National
Horticulture Mission, Rashtriya Krishi Vikas Yojana, Bharat Nirman, and Watershed
Development with MGNREGA.
 These convergence efforts will add value to MGNREGA, works and aid in creating
durable efforts and also enable planned and coordinated public investments in rural
areas.

WHETHER THE MGNREGA CAN RAISE BOTH PRIVATE SECTOR

WAGES AND EMPLOYMENT?

The answer lies in how the labour supply schedule available to private employers in
agriculture reacts to the opposing effects of the MGNREGA : in effect whether or not
the unemployment benefit aspect that provides workers the option of an alternative
source of employment and leads to a reduction in the pool of workers available for the
private employment dominates the contestability effect of the MGNREGA that makes
private employment options more lucrative subsequent to a rise in private-sector
wages. Intuitively, if the disposable income generated by public works programmes is
low enough relative to the disposable income generated from private employment
then the contestability effect dhoud dominate, leading to an increase in both private-
sector and unemployment.

In the presence of labour market imperfections, an employment guarantee can

improve both efficiency and equity. The key trade-off is between the unemployment
benefit nature of the wage offered, and the contestability introduced into the labour
market because of the employment guarantee and conceptual cut at these issues
reveals the key importance of the discretion embodied in the location of the public
works projects and various on-site benefits that can be made available to workers.
While often seen as being ‗merely‘ operational in nature, our argument shows that
they are the counterpart to the central features of the conceptual argument on the
efficacy of the employment guarantees.

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CHALLENGES IN IMPLEMENTATION:

 Denial of registration
Reports from the field point to incidents of denial of registration to single-woman-
headed households and physically challenged individuals. Discrimination based on
caste has also been noted in some states like Gujarat.

 Delay in distribution of job cards

The point of concern, however, is not just the percentage of issue of job cards but the
percentage of distribution of job cards. Though job cards have been prepared across
most states, in many states they have not reached the people, thereby restricting their
right to demand work. A probable cause for this is the workload of the panchayat
sevak who undertakes the task of distribution. On average, each sevak has two or
three panchayats under him/her, thus making the task extremely difficult.

 Unsolicited fees being charged for work application forms

Fees for application forms are being charged in many states like Gujarat, Madhya
Pradesh and Jharkhand. The fee ranges from Rs 5 to Rs 50 in some states. Forms are
also sold openly in local markets or haats. This flouts the MGNREGA guidelines that
state that applications may even be submitted to the gram panchayat on a plain piece
of paper.

 Non-issuance of receipts
Another general problem noted in the villages is the absence of a system to issue
receipts (pauthis) to applicants. This could be because of lack of awareness on the part
of the panchayat sevak and the villagers. Receipts, however, are crucial as a proof of
work demanded.

 Absence of worksite facilities

The MGNREGA provides for facilities for safe drinking water, shade for children,
periods of rest and a first-aid box at the work site (Section 27, Schedule II of the
MGNREGA). But a lot has to be done to ensure these facilities, the notable absence
of which is a problem that cuts across states. The Commissioners of the Supreme
Court (in the case of PUCL vs. UOI and others) have advised the states that if need
be, temporary shelters must be built for those doing MGNREGA labour.

 Non-availability of muster rolls at the worksite

It is rare indeed to find muster rolls at the worksites. Reports from across MGNREGA
districts show that kutcha muster rolls/attendance sheets are being maintained by
people at worksites. Rough notebooks and diaries are being used to mark attendance
and make wage payments.

 Delay in wage payments

Delays in wage payments have always been a matter of concern in previous
employment programmes, and this issue continues to plague the MGNREGA. Wage
payments are delayed for weeks, sometimes months.

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  Issues related to measurement of work done
Regular measurement of work done, according to a schedule of rural rate sensitive
supervision of works by qualified technical personnel on time. Reading out muster
rolls on work site during regular measurement to prevent bogus records and payment
of wages below prescribed levels.

 Shortage of staff and delay in appointments

The Act‘s launch was not accompanied by the appointment of additional staff for its
implementation. This has resulted in the existing staff being burdened with additional
work. At the panchayat level, the guidelines specifically advised the appointment of a
‗rozgar sevak‘. Disappointingly, this has not yet been done. The lack of staff is having
a negative impact on the workings of the MGNREGA.

CRITICISM OF MGNREGA:

Despite its progress in improved implementation and governance, the MGNREGA

still has to deal with the corruption and other improprieties that have come to be
associated with any Govt. program in India. The CAG review said in as many as 70%
of the villages checked, there were no proper records available on number of
households who demanded jobs and the actual number of people who benefited from
the job guarantee scheme. Some major criticisms are as follows:

MGNREGA is just a way of redistribution of Income:

There is some truth to the criticism that this act is just a way of redistributing the
income rather than making any lasting improvements in the rural infrastructure. Even
its main proponents are silent on the details of the infrastructure projects successfully
completed through the program and the benefits of such projects to the local
communities. A majority of the supporters only show its effectiveness in improving
governance procedures and making people aware of their rights. This is, however,
more an offshoot of the successful implementation of the Right to Information act in
the MGNREGA program than the MGNREGA itself.

Long term dependency of the poor on the Government:

It would just create a long term dependency among the poor on the largesse of the
Govt. If the works are only of marginal importance, and involve mainly the equivalent
of digging and filling the ground, it would be such a huge waste of human potential
and resources.

A Vote Bank called MGNREGS :

With the new changes in store, chances are the rural jobs scheme will become a
vehicle for gigantic expenditures in the name of the poor with very little money
actually going to the poor.

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Misuse of public Funds:

The apparent misuse of much larger amounts of public funds rarely gets much
mention in the press, especially when it pertains to expenditure that is likely to benefit
the urban elite, such as major new highways or new airports. But on the relatively
small amount of money spent on MGNREGA there have been shrill and adverse
allegations in the media from the very start.

Lack of Administrative Capacity:

The lack of the administrative capacity to run this scheme in the desired
decentralised manner and the need to build this capacity quickly and effectively.
The main deficiency was the lack of adequate administrative and technical
manpower at the Block and GP levels, especially the Programme Officer,
Technical Assistants, and Employment Guarantee Assistants. The programme so
far has not done what it was supposed to do to the full extent, mainly because of
the shortage of administrative and technical staff. Therefore is the urgent need to
ensure more administrative assistance for the programme at all levels, which
really means both resources and personnel devoted to the actual implementation,
monitoring and financial management of the programme.

Absence of Effective Grievance Redressal System:

The major problem with MGNREGA is that there is absolute absence of an effective
grievance redressal system. The common labourers are not aware to whom to submit
their grievances and what will happen to that. Although the government of India
recently passed an ombudsman order, but there are also many loopholes.

Absence of Strong Penalty Provisions:

Absence of One more significant problem to be considered is the problem of the

absence of strong penalty provisions. Provision of Rs1000 as fine under MGNREGA
will not affect any corrupt official in anyways. Strongest possible provisions should
be there in the act, if we expect the proper implementation.

Hindrance in Enhancing the Skills:

A second is the danger that, given their focus on the creation of local employment,
MGNREGA may be discouraging rural workers from moving to areas of higher
productivity where skills for better employment can be obtained, and so may be
delaying economic transformation.

Criticism is also mounting from civil society:

Many argue that the poor implementation of MGNREGA makes beneficiaries believe
that it is no better than other government schemes that have had little impact on
poverty. Although MGNREGA is a flagship project of the governing coalition, there
is much political rivalry over the scheme.

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 In most of the states, MGNREGA has become a source of guaranteed income for the
corrupt officials. However, with all the instances of corruption and misappropriation
of MGNREGA funds, it has also proved as one of the better scheme in terms of
providing income to the rural labourers and building some short of infrastructures (it
may not be productive structures in all the cases) at the village level. But much needs
to be done. I personally feel that MGNREGA should not be considered as only a
scheme which has the provision of giving hundred days of work to the people; it
needs to be seen in a broader perspective. Along with its objective NREGA can be an
effective tool for organizing rural labourers and mobilizing them to demand for other
basic rights.

RECOMMENDATIONS/SUGGESTIONS:
MGNREGA, 2005 Act is an important step towards the realization of the right to work. It
is also expected to enhance people‘s livelihoods on a sustained basis, by developing the
economic and social infrastructure in rural areas. The choice of works seeks to address
the causes of chronic poverty such as drought, deforestation and soil erosion. Effective
implementation of the, employment generated under the Act has the potential of
transforming the geography of poverty. But it is very important for the people that this
scheme should survive for long for the development of rural areas and for economic and
social prosperity and seeing MGNREGS work from closely in the areas where it is
performing well i would like to give some recommendations for the effective functioning
of MGNREGS. Some of these are as follows:

 There should be a proper training format for the MGNREGS employees.

 There should be a awareness programs for the workers, as whatever mistakes were
found it was because of unawareness among the workers.

 These awareness programs can be associated with SARVA SIKHSHA ABHIYAAN,

and night schools can play an important role in this program.

 There should be a transparency and accountability at every stage of MGNREGS.

 Government should form auditing agency at Panchayat level and it should consist of
not only the government officials but some other agencies and NGOs.

 Percentage share of the government officials in schemes must be stopped

immediately.

 The block offices should be closed down and a direct link should be established
between district headquarters and the Gram Sabhas. The Gram Sabhas must be given
the right of issuing job cards, preparation of muster rolls, planning, implementation
and monitoring of the schemes.

 A strong legislation needs to be brought with the provisions of severe punishment as

dismissal from the service, imprisonment and recovery of grabbed money with ten

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 times penalty. There should be also a special court, which can sort out the matters in
time bound manners.
Corruption is the most serious issue in MGNREGA, which is prevalent at every level.
The share is fixed for the government officials in each scheme and misappropriation
of fund is going on shamelessly across the country.

Interestingly, the Legislative, the Executive and the Judiciary, all are aware about the
rampant corruption in MGNREGA but none of these working to bring back the
MGNREGA on the right track. The Chief Justice of the Supreme Court, Justice K.G.
Balakrishnan says, “NREGA is under the clutch of middle men.”

The wage is paid to the labourers through the Bank accounts but contractors and
middle men comfortably get their share. The schemes are also not accomplished
properly but the full amount is released without proper verification. The labourers are
also asked to pay for the job cards. Hence, there is a check post of loot in each
turning-point of MGNREGA.

CONCLUSION:
Even with these variations, the overall story is still positive. Many households have
not been covered, but many have. 100 days of work have not yet been provided, but
an average of 33 days has, which is clearly a step forward. And this will obviously
increase over time. It is one of the most important things. People should know where
the money is spent. The poor person who is working under this Act should get his
wages. Instead, people are extracting money from the poor

There are also some clear successes, in certain states and districts. It is already evident
from field reports that there has been some improvement in consumption of the poor,
reduction of distress migration and slight increases in lean season wage rates
(especially for women) in the areas where the programme has functioned successfully.

Obviously, these successes have to be sustained, replicated and expanded. And in

other areas the weaknesses of the programme that have been identified by the CAG
and other observers have to be addressed, including through local mobilisation. But
this cannot happen overnight, it is necessarily a long process. The important thing is
to create a momentum whereby the programme will actually work as intended across
the country.

Rozgar Jagrookta Puruskar award has been introduced to recognize outstanding

Contributions by Civil society Organizations at State, District, Block and Gram
Panchayat levels to generate awareness about provisions and entitlements and
ensuring compliance with implementing processes. The government has engaged
professional institutions like IIMs, IITs and agricultural universities to assess the
implementation of MGNREGA across the country.

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REFERENCES:

1. Basu Kaushik – ‗The Oxford Companion to Economics in India‘ 2007

2. Jetli K. Narinder – ‗INDIA: Manpower, Employment Policy and Labour Welfare‘

2006 – New Century Publications.

3. Tanushree Sood (a researcher with the office of commissioner to the Supreme Court)
– ‗NREGA: Challenges and Implementation‘.

4. Aruna Roy and Nikhil Dey (activists with Mazdoor Kisan Shakti Sanghtan) –
‗NREGA: Breaking New Ground‘ – The Hindu: Magazine – June 21, 2009.

5. A Report by Sandeep Phukan – ‗Why the NREGA is controversial?‘- August 19,

2009 New Delhi.

6. TOI Bureau, New Delhi – ‗Biometrics, e-attendance to plug NREGA loopholes.

7. Sreelatha Menon – ‗NREGA should have a coherent wage policy‘ – March 14, 2010,
Business Standand.

8. Devinder Sharma – ‗Agriculture squeezed out in Budget 2010‘ – Deccan Herald.

9. ‗PM, Sonia admit to ‗lapses‘ in implementation of MGNREGA‘ – Press Trust Of

India.

10. ‗Implementing NREGA‘ – Ministry of Rural Development.

11. ‗Status of NREGA Implementation‘ grassroots of learning and way forward –

Samarthan [Centre for Development support with support from Poorest Ares Civil
Society (PACS)].

12. Jayanti Ghosh – ‗The NREGA and its Critics‘ – March 10, 2008.

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