House panel flags cut in NREGS budget, says scheme last resort of succour for rural poor

“The Act governing the Mahatma Gandhi National Rural Employment Guarantee Scheme provides ‘Right to Work’ to such deprived sections of the rural populace who are willing to work. It is a last resort of succor for the jobless section who don’t have any other means to feed them(selves) and their family members,” the committee headed by DMK member Kanimozhi noted.

The report stated: “The role and importance of MGNREGA was visible during the (Covid-19) pandemic, when it acted as a ray of hope for the needy in times of distress. The importance of the scheme got highlighted through the substantially huge increment at the RE stage in 2020-21 and 2021-22 from Rs 61,500 crore to Rs 1,11,500 crore, and Rs 73,000 crore to Rs 99,117.53 crore, respectively, to meet the increase in demand of work during the pandemic.

“Even during ongoing Financial Year, funds for MGNREGA have been increased to Rs 89,400 crore at RE stage from Rs 73,000 crore at the BE stage. However, for [FY] 2023-24, at the starting stage itself, MGNREGA has been allocated Rs 60,000 crore against the proposed demand of Rs 98,000 crore by the Department of Rural Development.”

The report, however, mentioned that the panel is “unable to comprehend the rationale for reduced allocation of funds under MGNREGA”. It stated, “Since it is necessary that adequate Budgetary Allocation ought to be made for effective implementation of the scheme, the committee strongly feels the requirement for the matter of decreased fund allocation be looked afresh.”

“It is an established procedure that MGNREGA being a demand-driven scheme, funds can be raised at RE stage accordingly. However, [the] Ministry of Finance should have been impressed upon as to how the Department of Rural Development arrived at the calculation of Rs 98,000 crore at proposal level for MGNREGA…. Had it not been the projections received at the ‘agreed to Labour Stage’, such a proposal would not have been mooted at the outset by the Department of Rural Development,” the report noted.

Therefore, it stated, the Committee “strongly” recommends that the Department of Rural Development apprise itself of the still-existing high demand for jobs under MGNREGA at the ground level “more realistically, and utilise their communications and administrative skill to press upon the Ministry of Finance for increased allocation to MGNREGA”.

On the ministry’s latest move regarding mandatory attendance through the National Mobile Monitoring System App, the report said, “The Committee is not oblivious to the facts surrounding the necessity felt by the Department…(But) expecting MGNREGA workers to be well-versed with functioning and language of app, or depending upon a nodal human intervention, perhaps adds to their woes.”