Underestimated utility: The Hindu Editorial on Mahatma Gandhi Rural Employment Guarantee rural jobs scheme fund crunch
The HinduThat as many as 21 of 35 States/UTs have utilised, by October 29, over 100% of their allocated funds under the Mahatma Gandhi Rural Employment Guarantee Scheme for FY2021-22 is not a surprise. In the previous year, the allocations for MGNREGS were increased by ₹50,000 crore to meet the demand for work, with the Revised Estimates for spending for the scheme going up to ₹1,11,500 crore. Clearly, the Union government has underestimated the demand for work under the scheme, which even if it involves arduous and menial labour has accounted for a large chunk of rural employment at a time when the economy suffered a steep contraction due to the effects of the pandemic. In response to a report, officials in the Rural Development Ministry accused States of “artificially” creating demand, but this has not been borne out from ground reports which continue to indicate rising demand for work and wages in rural India; civil society activists claim that some workers have been turned away by officials despite the demand for work because of the paucity of funds.