An open letter to Sonia Gandhi: Does decrease in MNREGA outlays equal 'a silent strike on India’s poor'?

Contrary to Sonia Gandhi’s unfounded allegation, the decrease in demand for MNREGA is actually a reflection of sustained growth in real GDP and the growth of remunerative jobs, leading to an increase in per capita incomes Alas, despite India being a mature and vibrant democracy, what we lack is constructive opposition. Coincidentally, Gandhi’s critique also comes at a time when the India growth story is being praised globally and Modi’s global popularity ranking has surged to 78 per cent, the highest for any world leader. In light of the 32 per cent reduction in MNREGA allocation this year, to Rs 600 billion, which Sonia Gandhi views as “a silent strike on the poor”, let us examine the multiple growth drivers embedded in the massive budgetary outlays allocated to sectors that have the potential to create maximum jobs for the unskilled and semi-skilled rural and urban poor: • There is a sharp increase in Capex by 33 per cent to 10 lakh crores • Outlays for roads have been raised by 25 per cent • The outlays for railways is up by 48 per cent to Rs 2.4 lakh crores • The affordable housing scheme of PM Awas Yojna, has been increased to Rs796 billion, which is boosted by 66 per cent over the last year • As 95 per cent of India’s businesses are micro-scale enterprises, the ECLGS scheme for MSME’s has been increased to Rs90 billion. • Rs35,000 crore has been committed to furthering the sunrise sector of India’s energy transition and net-zero initiatives • The outlays for urbanisation and Smart cities in tier 2 and 3 cities have increased to Rs10,000 crore • Rs 70,000 crore has been accorded to Jal Jeevan Mission • Free food grains are being provided to 80 crore beneficiaries • Close to 70 per cent of loans sanctioned under MUDRA went to women entrepreneurs in 2022 • Financial assistance of more than Rs2.25 lakh has been provided to farmers, aside from an Agriculture Accelerator Fund which will ensure affordable technologies and storage facilities are accessible to farmers • A special focus to skill and upskill lakhs through the Kaushal Vikas Yojna 4.0 to make our workforce future-ready Optimal employment generation will be achieved through the public capital expenditures flowing into the economy through the previously mentioned outlays, in which labor will be deployed towards urbanization and rurbanization, not by increasing MNREGA.