MGNREGA and the weight of change

The proposal to rename the rural employment scheme, raise the number of guaranteed workdays and alter its cost-sharing structure has reignited debate over its implementation and intent. Sanjeeb Mukherjee decodes

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‘The Centre's proposed move to rename its flagship rural employment programme, the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), as the Pujya Bapu Grameen Rozgar Yojana, and to raise the number of mandatory workdays from 100 to 125, has triggered sharp reactions from the political class and civil society groups.

Beyond these, some experts say the Union government is also considering changes to the cost-sharing arrangement between the Centre and states for wages and material expenditure. Currently, the Centre bears 100 percent of wage costs and 75 percent of material expenses, with states contributing the remaining 25 per cent for materials, making the scheme an almost fully Centrally funded programme. According to sources, the proposed changes would restructure funding such that, of an estimated allocation of about %1.5 trillion, roughly %95,000 crore would come from the Centre, with the balance to be contributed by states. Experts say this would imply that states may be required to shoulder part of the wage burden under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which covers MGNREGS.

“If this is true and forms part of the final changes, it would be completely in violation of the spirit of MGNREGA and against the framework of the legislation,” said Nikhil Dey, founder member of the Mazdoor Kisan Shakti Sangathan and the National Campaign for People’s Right to Information. “NREGA was conceived as a Central law precisely because states were unwilling to bear the additional financial burden.”