Average income of MGNREGA workers got doubled during lock-down: CRISIL

Published: August 26, 2020

Indian credit rating agency CRISIL has said according to its report, the average income of MGNREGA workers has doubled in the time period of the COVID-19 outbreak lockdown to around Rs 1,000 during the first quarter of the FY20.

What is the MGNREGA scheme?

Mahatma Gandhi National Rural Employment Guarantee Act is a labor law in India that aims to ensure the ‘right to work’. It was first proposed by P.V. Narasimha Rao in 1991 and passed in 2005 under the UPA government. The project implementation is mainly done by the gram panchayats.

What are the objectives of the MGNREGA?

  • Enhancement of livelihood and security to the rural population of India.
  • At least 100 days of employment guarantee with wages the adult unskilled members of every household in a single financial year.
  • Creation of government assets like roads, canals, ponds, and wells.

Significant increase noticed

  • About 46% of growth in work implementation has been noticed during the April-July period of FY 20.
  • Average per day wage showed an increasing trend of 12%.
  • Allocation of work has increased by 50%

The reason behind the increment

  • According to the report, the primary reason for the increase in average income is because of the COVID-19 pandemic. Lots of people lost jobs and the migrant workers returned to their home. It provided a thrust in the MGNREGA related work in the state of Haryana, Uttar Pradesh, Bihar, West Bengal, Odisha, and Gujarat.
  • The allocation made in the Union Budget 2020-21 and spending more than 50% of funds in the first quarter has also played a crucial role.

What are the functions of CRISIL?

CRISIL is the first Indian Credit rating agency, established in 1987 by the joint venture between ICICI and Unit Trust of India. It is associated with providing ratings, conducting research, and risk and policy advisory services. It is headquartered at Mumbai.

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