The Meaning of Guarantee

Rural jobs scheme needs rational outlays, curbs on misuse should not deprive the needy of aid

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The government seems to expect a significant reduction in the number of families seeking work under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) as well as the job cards issued over the coming years. The rural development ministry has reportedly demanded a 12% increase in the scheme's outlay for the five years through FY30, compared to the previous five. This may not even be enough to cover the inflation of material costs during the period, let alone any increase in wages to fully compensate for inflation, unless the beneficiary pool shrinks substantially.

In FY25, 57.9 million households sought daily-wage MGNREGS work, down 23% from FY21 when it peaked amid the acute rural distress caused by the pandemic. The work offered (person days generated) has seen an even sharper decline, indicating increased vigil to check misuse of funds. It is plausible that all who seek work aren't getting it.