Context: A LibTech India report on MGNREGA for FY 2024–25 highlights a stark mismatch between rising registrations (increase by 8.6%) and declining employment delivery (decline by 7.1%), mainly due to delayed payments and budget shortfalls.
About MGNREGA
- What It Is: A social security and livelihood assurance program guaranteeing 100 days of wage employment to rural households.
- Launched In: 2005 under the Mahatma Gandhi National Rural Employment Guarantee Act.
- Ministry: Ministry of Rural Development.
- Objective: Enhance livelihood security by providing employment in unskilled manual labour and building rural assets.
- Key Features: Demand‑driven enrollment; legal entitlement to work; time‑bound wage payment (within 15 days) with compensation for delays; transparency via MIS and social audits.
Key Data on MGNREGA FY 2024–25
- Registrations: Increased from 13.80 crore (FY24) to 14.98 crore (FY25), a rise of 8.6%.
- Employment Delivery: Dropped by 7.1%; only 7% of households received the full 100 days of work.
- Person‑Days: Fell from 52.42 to 50.18 days per household (–4.3%).
- Fund Utilisation: ₹82,963 crore spent (106% of the ₹86,000 crore budgeted).
- State Trends: Declines in Odisha (–34.8%), Tamil Nadu (–25.1%), Rajasthan (–15.9%); increases in Maharashtra (+39.7%), Bihar (+13.3%).
About MGNREGA Wage Payment System
Stage 1 (State)
Complete muster roll, measurement, wage list, and FTO generation within 8 days.
Stage 2 (Centre)
Central government processes FTO and credits wages within 7 days post Stage 1.
Delay Compensation Formula
0.05% of wage per day beyond 15 days from muster roll completion.
Payment Types
- Aadhaar‑based (APBS): Routed via NPCI mapper, prone to rejections if Aadhaar‑bank mapping fails.
- Account‑based: Direct transfer to bank account, easier error resolution.
Issues Surrounding MGNREGA
- Delayed Wage Payments: 71% of central payments were delayed, contravening the 15‑day mandate.
- Lack of Funds: Budget allocation of ₹86,000 crore falls short amid rising demand.
- Caste‑based Payment Delays: SC/ST workers paid first; others face longer wait times.
- Payment Failures: Over ₹4 crore worth of payments failed, mainly due to Aadhaar‑related technical issues.
- Low Compensation Uptake: Only 3.76% of delayed payment dues were compensated.
Way Ahead
- Increase Funding: Raise the budget to ₹1.5–2 lakh crore to meet rising demand.
- Simplify Payments: Favor simple bank transfers over Aadhaar‑based routes to reduce delays and errors.
- Ensure Automatic Compensation: Trigger delay compensation payouts without worker intervention.
- Improve Monitoring: Implement real‑time tracking systems for payment status and rapid issue resolution.
- Equal Treatment: Eliminate caste‑based prioritization; ensure all workers receive equal, timely wages.
Conclusion
Despite shortcomings, MGNREGA remains a cornerstone of rural resilience, especially post‑COVID. Addressing delayed payments, ensuring adequate funding, and simplifying processes are essential to uphold its constitutional promise of livelihood with dignity.
