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Indian Economy


  • 28 Dec 2019
  • 3 min read

Why in News

Key Points

  • There has been a decrease in the number that were actually provided work out of the total number of households whose demand for work was registered by the gram panchayat authorities concerned. In 2018-19, demand was registered from 5.88 crore households, and 5.27 crore of them were provided work.
  • The year 2019 has witnessed a dip in the person-days of employment under MGNREGA, which is visible after July.
    • In the period before July 2019, the work provided exceeded the corresponding levels for 2018.
    • The fall in MGNREGA employment after July has been largely due to the onset of the southwest monsoon.
  • The gap between the number of households demanding MGNREGA work and the number who were provided work has been the highest in 2019-20. This indicates that even if demand fell, the supply of work fell even more.

Lack of Funds

  • The cost of providing a day’s work to a single person has been taken at an average of ₹249.86 for 2019-20. For 270.21 crore people, the MGNREGA budget worked out to roughly ₹67,514.67 crore.
  • But the total budgetary allocation has been only ₹60,000 crore, which also includes provision towards material and administrative expenses.
    • Adding to the problem, ₹55,829.62 crore was already spent as on December 24, 2019.
  • Apart from this, the Centre has revised upwards its original plan of providing 260 crore person-days of work for 2019-20 to 316.73 crore person-days.
    • This move came after a decision to augment the number of days of employment per household under MGNREGA from 100 to 150 in flood-affected districts of states such as Karnataka.

Other Schemes Facing Similar Situations

  • Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
    • In the first instalment (December 2018 to March 2019), 8.05 crore farmers were covered, with each of them receiving ₹2,000. Those numbers fell to 7.43 crore in the second instalment (April-July 2019) and further to 5.91 crore in the third (August-November).
    • In all, the total amount disbursed under the scheme for 2019-20 is ₹32,320.86 crore, which is significantly short of the ₹75,000 crore budgeted for it.
    • Further, of the total ₹95,000 crore allocated for the scheme since its inception in 2018 ₹48,421.65 crore (roughly half of the total amount) has been spent up to December 2019.
  • PM Awas Yojana-Gramin
    • The number of rural houses built under the scheme has seen a drop to 7.2 lakh in 2019-20 from 47.33 lakh in 2018-19.

Source: IE

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