Day 44 – Q. 4. MGNREGA has supported vulnerable rural communities, but it still struggles with issues like poor implementation, lack of funds, and low transparency. Critically assess its performance and suggest how it can be improved. (250 words, 15 marks)

  • IASbaba
  • July 22, 2025
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Ethics Theory, TLP-UPSC Mains Answer Writing

Q. 4. MGNREGA has supported vulnerable rural communities, but it still struggles with issues like poor implementation, lack of funds, and low transparency. Critically assess its performance and suggest how it can be improved. (250 words, 15 marks)


Introduction 

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, aims to  enhance livelihood security in rural areas by providing at least 100 days of guaranteed wage  employment per year to every household whose adult members volunteer to do unskilled  manual work.  

Body  

Major Features of MGNREGA 

  1. Legal Entitlement: guarantees 100 days of wage employment annually as a right-based  approach to rural livelihood security.  
  2. Demand-Driven Scheme: employment must be provided within 15 days of demand; else,  the worker is entitled to an unemployment allowance.  
  3. Inclusive Coverage: applies to all rural households willing to do manual work, irrespective  of caste or gender.  
  4. Women Empowerment Provision: mandates at least one-third of beneficiaries to be  women workers.  
  5. Decentralised Implementation: execution through Gram Panchayats ensures local  planning, social audit, and transparency.  

Key Achievements of MGNREGA 

  1. Rural Livelihood Security: has provided employment to millions during agrarian distress  and crises like COVID-19.  Example: Over 7 crore households availed work under MGNREGA in 2020–21 (Ministry  of Rural Development).
  2. Women’s Participation: enhanced female workforce participation, offering financial  independence and decision-making power.  Example: Women account for over 50% of MGNREGA workers annually (MoRD data,  2023).
  3. Asset Creation: contributed to water conservation, irrigation, and rural connectivity  through community-based works.  Example: Over 40 lakh water-related assets created between 2014–22 (MGNREGA MIS  Reports).
  4. Social Inclusion: provided jobs to marginalized groups including SCs, STs, and landless  laborers.  Example: In FY 2022–23, SC/STs contributed to nearly 38% of total person-days.

Major Challenges in Implementation 

  1. Delayed Wage Payments: chronic delays violate the Act’s mandate and discourage  participation.  Example: In 2022–23, nearly 45% of wage payments were delayed beyond 15 days  (NREGA Sangharsh Morcha).
  2. Fund Shortages: frequent fund constraints lead to stalled projects and unmet demand  for work.  Example: CAG Report (2020) flagged instances of mid-year fund exhaustion in states like  Bihar and WB.
  3. Corruption and Ghost Beneficiaries: weak monitoring and false job entries result in fund  leakage.  Example: CAG audit revealed fake job cards and duplication in multiple districts.
  4. Lack of Technical Capacity: poor planning, monitoring, and lack of trained staff affect  quality of assets.  Example: Accountability Initiative reports show only 21% of technical posts filled in many  blocks.
  5. Digital Divide and MIS Dependence: Aadhaar-seeding and app-based attendance create  exclusion errors.  Example: Use of NMMS App led to exclusion and protests in Rajasthan and Tamil Nadu.

Way Forward 

  1. Ensure Timely Fund Allocation: decentralise fund release and enhance budget  predictability to avoid payment delays.  
  2. Improve Monitoring and Social Audits: strengthen social audits with community  involvement and third-party verification. 
  3. Strengthen Technical Support: recruit trained personnel at block and panchayat levels to  plan and supervise durable assets.  
  4. Committee Recommendations: adopt suggestions from the Standing committee on rural  development (2013) like enhancing convergence with other schemes and real-time MIS  tracking for transparency.  

Conclusion 

MGNREGA remains vital for rural resilience and poverty reduction. Strengthening it aligns  with Article 41 of the DPSP, which mandates the State to ensure the right to work and public  assistance for the vulnerable. 

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