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State PCS

UP PCS Mains-2025

  • 11 Mar 2026 GS Paper 3 Economy

    Q. Critically evaluate the impact of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on rural poverty alleviation. (Answer in 125 words) 8

    Approach:

    • Briefly explain MGNREGA as a social safety net for rural employment and poverty alleviation.
    • Discuss its role in providing livelihood security, reducing rural poverty, improving rural infrastructure, and empowering marginalized groups like women and SC/ST communities.
    • Highlight issues like delayed payments, corruption, lack of durable asset creation, and regional disparities.
    • Provide a balanced view and suggest reforms to enhance its effectiveness.

    Answer:

    Introduction

    The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was enacted in 2005. The Act gives legal guarantee of a hundred days of wage employment in a financial year to adult members of a rural household who demand employment and are willing to do unskilled manual work. The objective of the Act is to enhance the livelihood security of the people in the rural areas by generating wage employment through works that develop the infrastructure base of that area.

    Body

    Positive Impacts:

    • Employment Generation: Under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) a total of 5.22 Crore households availed employment and a total of 223.54 crore person-days employment has been generated (till 15th January, 2025).
    • Income Stability: By ensuring a source of income, the scheme has contributed to income stability among rural households, enabling better access to food, healthcare, and education.
    • Reduction in Migration: Availability of local employment has curtailed distress migration to urban areas, allowing families to stay together and maintain social cohesion.
    • Asset Creation: The program has led to the development of rural infrastructure, such as water conservation projects, enhancing agricultural productivity and contributing to long-term poverty reduction.
    • Empowerment of Marginalized Communities: In FY 2024-25, 19.04% of person-days under MGNREGA were generated by Scheduled Castes, 17.8% by Scheduled Tribes, and 58.03% by women.

    Challenges:

    • Implementation Gaps: Issues such as delayed wage payments, inadequate awareness among beneficiaries, and bureaucratic hurdles have hindered the scheme’s effectiveness.
    • Corruption and Leakages: Instances of fund misappropriation and corruption have been reported, undermining the program’s objectives.
    • Regional Disparities: The scheme’s implementation has been uneven across states, with some regions failing to fully utilize the allocated funds, leading to disparities in benefits.
    • Limited Impact on Asset Quality: Concerns have been raised about the quality and sustainability of assets created under MGNREGA, affecting long-term rural development.
    • Wage Rate Issues: The Average Wage rate per day per person for FY 2024-25 is Rs. 249.87. In some instances, MGNREGA wages are lower than the prevailing agricultural wages, reducing the scheme’s attractiveness to potential workers.

    Conclusion

    MGNREGA has played a pivotal role in mitigating rural poverty and empowering marginalized communities. However, to maximize its impact, addressing implementation challenges, ensuring timely wage payments, enhancing transparency, and focusing on the quality of assets created are essential steps forward.

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