Decentralising MGNREGS

In Context

• Recently, an internal study commissioned by the Ministry of Rural Development has advised the decentralisation of MGNREGS.

Major highlights of the study 

• The study argued for decentralisation of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) which will allow for more “flexibility” at the ground level. 
• It was the report of the sixth Common Review Mission 
  • The report surveyed seven States — Andhra Pradesh, Arunachal Pradesh, Karnataka, Nagaland, Gujarat, Jharkhand, Himachal Pradesh — and the Union Territory of Jammu & Kashmir

• The report aimed to assess the implementation of all rural development schemes, including the MGNREGS.

• Issue:
  • Centralised fund management:
    • In the past few years, the fund management has been centralised instead of paying the gram sabhas an advance. 
  • Delay in fund disbursal:
    • The internal study also flagged the frequent delay in fund disbursal. 
  • Wages below the market rate:
    • The study also noted that the MGNREGS wages were far below the market rate in many States, defeating the purpose of acting as a safety net.
      • For example, 
        • At present, the minimum wage of a farm labourer in Gujarat is ?324.20, but the MGNREGS wage is ?229. 
        • In Nagaland, the wage is ?212 per day, which does not take into account the difficult terrain conditions. 
• Recommendations:
  • Diversification of permissible works:
    • According to the study, there should be a greater diversification of permissible works instead of listing the types of permissible works.
      • The broad categories of works may be listed out and flexibility should be given at ground level to select the type of works as per broad categories. 
  • Paying gram sabhas an advance:
    • Paying the gram sabhas in an advance will enable them to decide the work they want to undertake. 
    • The gram sabhas can take into account the local conditions and the community’s requirement instead of chasing a target set for them.
  • Revolving fund:
    • To deal with  the frequent delay in fund disbursal, the report suggested a “revolving fund that can be utilised whenever there is a delay in the Central funds”.

Other Challenges faced by MGNREGS

• Corruption and Irregularities: 
  • Funds that reach the beneficiaries are very little compared to the actual funds allocated for the welfare schemes.
• Discrimination: 
  • Frequent cases of discrimination against women and people from the backwards groups are reported from several regions of the country and a vast number goes unreported.
• Non-payment of Unemployment Allowance: 
  • There is a huge pendency in the number of unemployment allowances being shown in the Management Information System (MIS).
• Lack of Awareness: 
  • People, especially women, are not fully aware of this scheme and its provisions leading to uninformed choices or inability to get the benefits of the scheme.
• Poor Infrastructure Building: 
  • Improper surveillance and lack of timely resources result in poor quality assets.
• Non-Purposive Spending: 
  • MGNREGA has increased the earning capacity of the rural people but the spending pattern of the workers assumes significance because there is hardly any saving out of the wages earned.

Suggestions & way ahead

• Social audits: 
  • There is a need to carry out social audits as per rules and effective implementation of the delay compensation system.
• Utilization of funds: 
  • Reasons for poor utilization of funds should be analyzed and steps must be taken to improve them. In addition, actions should be initiated against officers found guilty of misappropriating funds.
• Raising awareness: 
  • The participation of women and backward classes must be increased by raising awareness and making it more inclusive.
• National Level Monitors: 
  • The frequency of monitoring by National Level Monitors (NLMs) should be increased and appropriate measures should be taken by States based on their recommendations.

Source:TH