MGNREGA Employment Challenges in 2024-25

In 2024-25, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) faced challenges despite an increase in household registrations. A report by LibTech India brought into light a troubling decline in employment generation. The findings indicate a growing disconnect between the scheme’s outreach and its actual implementation.

Overview of MGNREGA

MGNREGA aims to provide at least 100 days of guaranteed wage employment in a financial year to every rural household. It was established to enhance livelihood security in rural areas. The scheme is crucial for alleviating poverty and improving rural infrastructure.

Household Registrations and Employment Trends

In 2024-25, registered households under MGNREGA rose by 8.6 per cent. However, the actual employment generated fell by 7.1 per cent. The average workdays per household also decreased by 4.3 per cent. Only 7 per cent of households managed to complete the guaranteed 100 days of work.

Regional Disparities in Employment

The report revealed stark regional disparities. Odisha experienced the most decline in employment at 34.8 per cent. Tamil Nadu and Rajasthan followed with decreases of 25.1 per cent and 15.9 per cent, respectively. Conversely, states like Maharashtra and Himachal Pradesh reported increases in employment.

Job Card Dynamics

In the same financial year, 11.6 million job cards were deleted, while 13.1 million workers were reinstated. The mass deletions of job cards, totalling 78 million between 2022 and 2024, raised concerns about the accessibility of the scheme. The reinstatement of workers was largely concentrated in the latter half of the financial year.

Eligibility and Compliance Issues

A number of workers remained ineligible for MGNREGA due to non-compliance with the Aadhaar-Based Payment System (ABPS). Approximately 27.5 per cent of total workers and 1.5 per cent of active workers faced exclusion. This issue marks challenges in ensuring that eligible workers can access benefits.

Impact of Budget Cuts and Delays

Budget constraints and delays in wage payments were identified as major factors behind the decline in employment under MGNREGA. The central government allocated Rs 86,000 crore for FY 2024-25. However, previous concerns raised by the Parliamentary Standing Committee on Rural Development about declining allocations have cast doubt on the scheme’s sustainability.

Call for Systemic Change

The LibTech report serves as a call to action for policymakers and citizens. It encourages active engagement in steering MGNREGA towards justice, resilience, and equity in rural livelihoods. The need for systemic reforms is crucial to enhance the scheme’s effectiveness and reach.

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