80 Million Workers Delisted from MGNREGS in 2 Years: Report
The Scheme is Essential for Income Security for Rural Families
Newsreel Asia Insight #237
May 30, 2024
As many as 80 million registered workers have been delisted from the central government’s Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) over the past two years, according to a report by two civil society groups.
There was a dramatic rise in the reduction of registered workers from 1.83% in 2019-2020 to 20.47 % in 2022-23, says the report, titled “Unpacking MGNREGA: Five Years of Implementation and Challenges 2019-2024,” as reported by ThePrint.
Released by LibTech India and NREGA Sangharsh Morcha on May 28, the report shows that only 4.24% new workers were registered in 2022-23.
In 2023-24, the deletion rate slightly decreased to 9.87% while 4.18% new workers were added.
MGNREGS is a social security scheme in rural areas by providing at least 100 days of wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work. This assurance of employment is crucial in rural areas where job opportunities are often scarce.
The report attributes the sharp rise in worker delistings to changes in the scheme’s implementation, notably the central government’s push towards using technology – the National Mobile Monitoring System and the Aadhaar Based Payment System (ABPS). These changes, combined with gradual budget cuts, have adversely impacted the scheme’s effectiveness and led to delays in wage payments, according to the report.
The ABPS relies heavily on biometric authentication and digital technology. In rural areas, issues like poor internet connectivity, frequent power outages, and inadequate digital infrastructure can lead to system failures, making it difficult for workers to access their payments.
Further, biometric authentication can be unreliable, especially for manual labourers. Constant physical work can lead to worn fingerprints, resulting in authentication failures. Additionally, older individuals may face similar issues with biometric scanning.
Furthermore, a significant portion of the rural workforce lacks digital literacy. Navigating a digital payment system can be challenging for these individuals, leading to confusion and errors in accessing their entitled payments.
Although there were some relaxations following protests by civil society members and concerns raised by state governments, the Union rural development ministry made ABPS mandatory for wage payments starting Jan. 1, 2024.
As of April 2024, only 69% of all registered workers and 92% of active workers – those who have worked at least one day in the past three years – were eligible for ABPS payments.
The lack of consultation with workers and civil society organisations has worsened job losses and increased hardships.
The report notes that the budgetary allocation was reduced for the rural employment scheme despite a gradual increase in demand for work.
The MGNREGS scheme relies predominantly on funding from the Centre, accounting for 90% of its allocation. Budget cuts, according to experts, have led to delays in payments to workers and hindered the program’s outcomes.
By ensuring employment, MGNREGS plays a vital role in providing income security to rural families, especially during lean agricultural seasons or times of economic hardship. In 2022, more than 11,280 individuals involved in the farming sector died by suicide, according to the National Crime Records Bureau.
According to a 2005 study by Parikh and Radhakrishna, the success of poverty reduction efforts hinges on agricultural growth, an objective that this scheme effectively addresses, as noted by Economic & Political Weekly. The introduction of the scheme triggered new interest in analysing intersectoral linkages in the rural economy. The demand for non-farm services like transport, education and carpentry is expected to rise due to increased income, both direct and indirect, noted a study by Saikia in 2009, according to EPW.
