Context:

In the 17 years since the implementation of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), studies have shown its positive impact in rural areas.

Significance of the Scheme:

• From reducing penury through providing off-season employment, acting as insurance during monsoon deficient seasons, allowing for greater food security through increased productivity helped by the works generated, the scheme continues to be a robust welfare tool. 
• During the pandemic, thousands of workers took up work under the MGNREGS in rural areas where demand for the menial but arduous work peaked. 

Challenges in Implementation:

• Allocation is reduced for the scheme in the Union Budget, from 2.14% of overall outlay in FY23 to 1.33% in FY24. 
• Aadhaar-based payments have neither reduced corruption nor reduced wage payment delays while creating hurdles for officials and workers during implementation.
• Now, the idea is to change the contribution of funds from 100% by the government to a 60-40 split between the Centre and the States in order to make States “more vigilant regarding corruption” will only lead to further complications in funding. 
• There has been a shrinking in the States’ share of taxes following GST and the financial stresses and taking up 40% of the funding burden would affect the payment of wages even further. 

Way Forward:

• MGNREGS is a demand-driven programme and salient especially in poorer States and it is incumbent upon the Centre to ensure its robust funding. The government must change its approach towards the MGNREGS by recognising its potential in catering to the poor’s right to work. 

News Source: The Hindu