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Topic : MGNREGA: Low Disbursal of Unemployment Allowance

GS-3 Mains  : Economy

Context: Only ₹90,000 released as unemployment allowance in 2023-24 under MGNREGA.

MGNREGA (2005):

  • Enhances livelihood security of rural households.
  • Largest public workfare program globally.
  • Addresses rural poverty & unemployment.
  • Guarantees 100 days of unskilled work per rural household.
  • Decentralised planning through Gram Panchayats.
  • Demand-driven approach.
  • Section 7(1): Work must be provided within 15 days or unemployment allowance payable.
  • Wage payments within 15 days, central govt. compensates delays.
  • Covers all rural districts except 100% urban areas.
  • Wages as per Minimum Wages Act, 1948.
  • Social security measures: unemployment allowance, pension schemes.
  • Transparency & accountability through biometrics and complaint redressal.

Unemployment Allowance:

  • ₹90,000 released in 2023-24 vs. ₹7.8 lakh in 2022-23.
  • Significant drop raises concerns about MGNREGA’s effectiveness.
  • Only 6 states disbursed allowance in 2022-23 & 2023-24.
  • Even fewer states paid in previous years.

Underlying Issues:

  • Unavailability of work despite demand.
  • Delayed registration of work demand by block-level functionaries.
  • Flawed reporting system: work demanded reported only when employment provided.
  • Potential motive: reducing state liability for unemployment allowance.

Other Challenges:

  • Adequate funding crucial.
  • Effective implementation: timely work & wage payments.
  • Strengthened monitoring & social audits for transparency & accountability.

Conclusion:

  • Low disbursal undermines MGNREGA’s purpose.
  • Prioritize addressing this issue for inclusive growth & rural development.
  • States must ensure timely employment & fair compensation for workers.

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