Daily Hot Topic
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.