Context:
A group of leading global economists and academics warned that dismantling or weakening MGNREGA would be a historic policy error, undermining India’s commitment to the right to employment and worsening rural distress. The views were expressed in an open letter to the Union government.
Key Highlights:
MGNREGA as a Rights-Based Framework
- MGNREGA is a demand-driven, legal right to employment, not a discretionary welfare scheme.
- Guarantees 100 days of wage employment annually to rural households.
- Recognised globally as a social protection and poverty-alleviation instrument.
Concerns Raised by Academics
- Dilution would weaken rural livelihoods, especially for women and marginalised groups.
- Reduced funding and delayed payments already undermine effectiveness.
- Shifting to allocation-based or capped expenditure models erodes legal enforceability.
Economic & Social Significance
- Acts as a counter-cyclical tool during economic downturns.
- Enhances rural purchasing power, supporting local economies.
- Generates durable rural assets and strengthens environmental resilience.
Federal & Administrative Issues
- States forced to bear disproportionate financial burden.
- Reduced Centre support could weaken cooperative federalism.
- High demand reflects rural distress, not scheme inefficiency.
Relevant Prelims Points:
- MGNREGA (2005): World’s largest public employment programme.
- Article 41 (DPSP): Right to work within State’s capacity.
- 60:40 labour–material ratio under the scheme.
Relevant Mains Points:
- Social Justice & Governance: Importance of rights-based welfare.
- Rural Economy: Employment guarantee as wage floor and safety net.
- Way Forward:
- Ensure timely wage payments.
- Adequate budgetary support linked to demand.
- Strengthen social audits and transparency.
UPSC Relevance (GS-wise):
- GS II: Welfare schemes, DPSPs
- GS III: Employment, inclusive growth
- GS IV: Social justice, constitutional morality