Impact of MGNREGA on Wages and Employment in Chhattisgarh

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1 57 Impact of MGNREGA on Wages and Employment in Chhattisgarh Ashish Kumar Mishra, Research Scholar, Department of Economics, Guru Ghasidas Vishwavidayala Dr. Manisha Dubey, Professor & Head, Department of Economics, Guru Ghasidas Vishwavidayala ABSTRACT The National Rural Employment Guarantee Act, 2005 (NREGA) guarantees 100 days of wage employment in a financial year to any rural household whose adult members are willing to participate in unskilled manual work. The Act is an important step towards realization of the right to work and aims at enhancing people s livelihood on a sustained basis, by developing the economic and social infrastructure in rural areas. In this regard, we are intended to know the impact of Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) on wages and employment, access to its beneficiaries in rural areas of Chhattisgarh. Out of 18 districts of Chhattisgarh, was implemented in 11 districts in first phase (2006). Three districts (25%) from the first lot of 11 districts of Chhattisgarh were selected for studying the beneficiary level impact and responses on the basis of demographic profile. These are Bilaspur, Dhamtari and Surguja. Findings of the study reveal that after the, majority respondents came under financial inclusion which proves to be an achievement of the scheme. The awareness of minimum wage information has improved. The average wage rate of workers has gone up by 103 per cent. Due to increasing employment availability, the overall quality of life of the beneficiaries has improved. Increasing average annual income facilitated a greater opportunity for children of workers. The study is based on primary data collected through questioners. Key Words MGNREGA, Wage, Employment, Chhattisgarh INTRODUCTION The National Rural Employment Guarantee Act, 2005 (NREGA) guarantees 100 days of wage employment in a financial year to any rural household whose adult members are willing to participate in unskilled manual work. The Act is an important step towards realization of the right to work and aims at enhancing people s livelihood on a sustained basis, by developing the economic and social infrastructure in rural areas. The present study, impact of Mahatma Gandhi National Rural Employment Guarantee Programme (NREGP) in Chhattisgarh, has focused on assessing the impact of this scheme on employment and wages. The information on the above aspects were collected through primary survey tapping six hundred beneficiaries spread in three districts of Chhattisgarh with 200 beneficiaries from each district, which were part of the first phase of implementation of the scheme. The data pertains to the year & By way of observation and schedule, data on these variables were collected from beneficiaries who are part of the NREGA Scheme. LITERATURE REVIEW Mathur(2009), states that in social audit undertaken in Andhra Pradesh, it was found that in certain villages, some people stated that they had not been paid for the work done. When comparisons were made of the payments as per the pass-book with the payment as per the job card, it was discovered that the job card did not contain the inner pages that record the work done by each person; the job card itself was incomplete. This came as a surprise as it had not happened in any region so far but then this area had resisted the initiative. The MPDO was asked to ensure that complete job cards were issued, investigate the lapse, fix responsibilities and send a report. Earlier, several officials, Field and Technical Assistants and Mates admitted to irregularities and about Rs. 50,000 were returned. From separate discussions with the sarpanch, it was evident that they were keen to ensure that there was no irregularity in their villages. On the whole, the authors are very positive about the potential of the scheme and see it as a means to revolutionize the way rural India lives and works. Ambasta, Shankar and Shah (2008), gave a number of important recommendations. Like Information technology has to be utilized optimally to infuse more transparency, accountability and speed at all stages, from sanction of works, release of funds, wage payments to social audit. The author also recommends revision of the Schedule of Rates so that they are in line with a program that bans machines and contractors, are gender sensitive, more accurately reflect variations in climate and geology, valuate separately the different activities that comprise works and move in tandem with changes in statutory minimum wages. But on the whole, the writing is very optimistic about and believes that the government of India has

2 58 finally come up with the scheme that could escape the failings of the past and actually reach the common man in a way all other schemes have been unable to. LalitMathur (2007), in this research the short comings of NREGA, which is into its second year of implementation has been studied. The performance of NREGA in states as a general has been evaluated. The performance is weighted according to employment achieved vis-à-vis utilization of money per state. It also looks at the Impact which has occurred due to implementation of NREGA and provides some suggestion for intervention needed in future for better implementation. Jean Dreze (2007), this study highlights the situation of NREGA in western Orissa and highlights the corruption of the programme in this area. He points out that the programme has been sabotaged the transparency safeguards which have been inculcated in the programme which perpetuates the traditional system of extortion already existing through new means of rural employment programme. Datar Chhaya (2007), this article explores why the NREGA has failed to take off in Maharashtra. This study looks into an act which was 30 years old in Maharashtra and one of the Pioneer Employment Guarantee scheme after being converted into a central Act is performing poorly in Maharashtra and every half of the money allocated for 12 districts in the first phase has not been spent It also compares the field level functioning and how the state Government is not taking interest particularly line department. Chakrabory, Pinaki (2007), this study analysis the budgetary provisions under NREGA and suggest that it has so far posed no problems for the budget. Its allocation is only marginally higher than what was spent in the past by the government on various rural employment programmes. It is a demand driven scheme and it has falls short of meeting demand is some states. The fund utilization ratio also varies widely across states. Louis Prakash (2006), this article reviews why the Bihar government is not implementing the NREGA. It analyses what holds the Bihar government from implementing the National Rural Employment Guarantee Programme in the state. It finds out that like its predecessor, the present government also seems to be strong on rhetoric and weak in implementation. Arun,et.al (2006), this is case study in Palakkad district of Kerala how the government s employment scheme is being implemented and reveals the vital role played by local bodies. While implementation has been largely fair and corruption free the scheme needs to be more efficiently and effectively used so as to meet the long term requirements of the state and its people. ISST Delhi (2006), this study analysis the NREGA from the gender perspective with reference to strengthening of rural infrastructure through creation of durable assets, regeneration of natural resources that would provide the livelihood resource base of local rural economy, etc. A household survey in four districts of Rajasthan, Madhya Pradesh, Karnataka and Orissa reveals that the proportion of eligible men and women are roughly the same, but in Rajasthan there are more women workers than men on the site. The level of mobilization among the villagers has also been studied. Bela, et,al.(2006), this article reviews the implementation of NREGA in two districts of Jharkhand, which found many serious flaws in its implementation process. The study evaluates NREGA in terms of awareness of programme, Job cards given, Demand for work by people, payments of wages and other implementation issues live worksite facilities, productive assets created, type of work done etc. The study by Khera Reetika (2006), is conducted in Rajasthan and analyses the experience of relief work in drought years. The data revealed that relief work has helped introducing the migration and if work. Continues to be obtained at the rural level it would further decline. Such has been provided under NREGA. RESEARCH METHODOLOGY In order to draw meaningful conclusions, appropriate sampling plan is used at different stages of study. Out of 18 districts of Chhattisgarh, was implemented in 11 districts in first phase (2006). Three districts (25%) from the first lot of 11 districts of Chhattisgarh were selected for studying the beneficiary level impact and responses on the basis of demographic profile. These are Bilaspur, Dhamtari and Surguja. Out of the three districts selected, 2 Blocks of each were selected randomly. From each block, 5 Gram Panchayat and from each Gram Panchayat 20 beneficiary were finally chosen again on random basis. So, 200 beneficiaries from each district were selected as sample for primary survey and field work. A detailed structured interview schedule for NREGP beneficiaries & Gram Panchayat officials were used for Data collection and primary survey. The data collected from all the 03districts is presented in the tabular and graphical form. BRIEF PROFILE OF CHHATTISGARH The State Chhattisgarh is one of the youngest States of the Indian nation. Constituted on 1st vember, 2000, Chhattisgarh is located in the heart of India. The geographical area of the State covers over 135,000 square kilometers. And the total population in 2011 was (2.55 crore).of this, 77 percent of the people live in rural areas and 23 percent live in urban areas. The State has a low density of population, 189 persons per

3 59 square kilometer. The sex ratio for the State is 991 females per 1,000 males. In rural Chhattisgarh, there are more women than men. OBJECTIVE To find out the impact of on employment & wage level in Chhattisgarh. ANALYSIS AND FINDINGS This section tries to capture the HH data pertaining to average number of days of work provided to each and every household, the distance of the work site, opinion about the awareness of the HHs vis-à-vis minimum wages Vs. NREGA wages, prevailing wage rates in the respective places etc. From table 1.1, it is observed that the average employment days were in Bilaspur District while it was counted days on an average in the Dhamtari District. However, the average man day was in Surguja District. It has been experienced that the overall employment days in the three Districts was Table-1.1 Variation in Districts on the basis of Average Employment Days District Mean N Std. Deviation Bilaspur Dhamtari Surguja Table no. 1.2 explains that, as to how many people were engaged for how many days in. The 100 working days have been distributed in the class interval. The result is as follows: In the District of Bilaspur, out of a total no. of respondents i.e. 200, a total of 26 respondents were engaged for 1-20 days, 37 respondents replied that they worked for days, while, 39 respondents were of the opinion that were engaged for days, and 21 respondents replied that they worked for days, whereas a total of 77 respondents were engaged for days in the activities related to. Table-1.2 District Bilaspur Dhamtari Surguja District wise Employment Days Grouped Unit Employment Days Grouped 0 Day 1-20 Days Days Days Days Days Count % 0.0% 13% 18.5% 19.5% 10.5% 38.5% 100% Count % 2% 11.5% 19.5% 39.5% 19% 8.5% 100% Count % 1.5% 17.5% 24.5% 25% 17% 14.5% 100% Count % 1.20% 14.00% 20.80% 28.00% 15.50% 20.50% % As regards the District of Dhamtari out of 200 respondents 27 respondents worked for 1-20 days, 39 respondents were engaged for days, while 79 respondents were involved in the work for days, whereas, 38 respondents worked for days. However, 17 respondents worked for maximum days i.e days. In the District of Surguja out of the total no. of 200 respondents 38 respondents worked for 1-20 days, and 49 respondents worked for days, while 50 respondents worked for days. Again 34 respondents were engaged for days, and 29 respondents had been engaged in the work for days. Districts, 91 respondents worked for 1-20 days, and 125 respondents had been engaged in the work for days, while 168 respondents worked for days, and 93 respondents were engaged for days. Similarly, 123 respondents had been engaged for the maximum days i.e days. Table no.1.3 clearly depicts that the average employments days generated by the NREGA in surveyed 30 Gram Panchayats were around 55 days but it also clearly reflects from the table that the maximum no. of beneficiaries got the job for around 80 to 100 days. With regard to the overall employment days it has been experienced that out of 600 respondents in three

4 60 Table-1.3 Statistics Employment Day N Valid 600 Missing 0 Mean Std. Error of Mean 1.18 Median Mode Variance Range Minimum 0.00 Maximum Percentiles Table no.1.4 clearly depicts that the mean annual income of the three Districts from is , while the mean of the total registered members is 2.62, getting Mean employment days in the. Moreover, the unemployment allowance awareness level is 0.16, while the family size is Table-1.4 Descriptive Statistics Mean Std. Deviation N Annual Income (Rs.) Registered Members Employment Day Unemployment Allowance Awareness Family Size The table. 1.5 depicts With regard to the payment mode it has been found that before the the payment mode was through the cash as 99.20% respondents have given their opinions while only a meager of 0.70% responded that they get payments through cash after the start of the scheme. Similarly, it was found that 0.30% respondents accepted that the payment mode was through P.O. before the, whereas after 33.80% respondents have the opinion that they are getting the payment through P.O. Again it has been found that 0.50% people replied to have the payment through Bank while 65.50% respondents agreed to have their payments through Bank after the launching of the programme,. It clearly infers that many people have their own accounts in the Bank and Post Office. Table-1.5 Payment Mode of Wages Payment Mode Cash P.O Bank The table.1.6 reflects disbursement of the wages District-wise about the payment mode. It has been clear that 99% respondents agreed that in the District of Bilaspur, it was done through cash payments, similarly in the District of Dhamtari also 99.5% people gave their opinions that they were paid through cash and in the District of Surguja a total no. of 99% respondents responded to have payments through cash. Table-1.6: District wise Payment Mode ( ) Payment Mode Cash P.O. Bank District Bilaspur Count % 99.0% 1.0%.0% 100.0% Dhamtari Count % 99.5%.0%.5% 100.0% Surguja Count % 99.0%.0% 1.0% 100.0% Count % 99.2%.3%.5% 100.0% However, just one percent (1%) respondents accepted that they were paid through Post Office, in the District of Bilaspur, and 0.5% respondents replied that they were paid through Post Office in the District of Dhamtari, while, 1% respondents in the District of Surguja said to have the payment through Bank. Payment mode has been reflected District-wise after the launching of the, in the table The findings have been reflected in the District of Bilaspur, that the payment mode is done through the Post Office (80.5%) and through Banks (18.5%). While still 1% respondents have had their opinions that they were getting the payment through cash. As regards the District of Dhamtari, it has been observed that 20% respondents said that they were paid through Post office, and 80% respondents said that they were paid through the Bank. Again the payment mode was through Banks in the District of Surguja, as 98% respondents responded, while one percent respondents responded to have paid through

5 61 post office and one percent respondents replied to have paid through cash. Table-1.7: District wise Payment Mode ( ) Payment Mode Cash P.O. Bank District Bilaspur Count % 1.0% 80.5% 18.5% 100.0% Dhamtari Count %.0% 20.0% 80.0% 100.0% Surguja Count % 1.0% 1.0% 98.0% 100.0% Count %.7% 33.8% 65.5% 100.0% Table no. 1.8 explains about the situation of average payment days. It was found that the before, the payment was made for 7.39 days but after the, it was made for days. This is because of the fact that earlier people worked on daily basis and are paid as soon as the works is over. While after the start of the it is paid as per the record on the Master Roll. Table-1.8: Duration of payment of wages Average Day Table no. 1.9 gives about the minimum wage information condition of beneficiaries. It has been found that 84.70% respondents said that they did not have information with regard to the minimum wage before the ; whereas after 81.50% respondents confirmed that they have information regarding the minimum wage. It implies that after the launching of the the people have become more aware about the minimum wage. Table- 1.9: Minimum Wage Information Minimum Wage Information Table no. 1.10gives a District-wise picture about the information of minimum wage. It has been experienced that a total of 92.5% respondents were not aware about the fact before the, while 7.5% respondents replied positively. Similarly, in the District of Dhamtari, it was found that 84.5% respondents were not aware of the minimum wage while 15.5% respondents confirmed that they were having the information about this. Again, in the District ofsurguja, 77% respondents were aware of the minimum wage whereas, 23 % people were aware of the minimum wage before. District Table-1.10: Having minimum wage information( ) Bilaspu r Dhamta ri Minimum Wage Info Count % 92.5% 7.5% 100.0% Count % 84.5% 15.5% 100.0% Surguja Count % 77.0% 23.0% 100.0% Count % 84.7% 15.3% 100.0% Table no.1.11 shows about the minimum wage information condition after, District-wise. In case of Bilaspur District it was found that 17% respondents said they did not have information about the minimum wage even after launching of the. However, after its inception it was observed that 83% respondents were of the opinion that they are having the information about the minimum wage. Table-1.11 Having minimum wage information( ) Minimum Wage Info District Bilaspur Count % 17.0% 83.0% 100.0% Dhamtari Count % 25.0% 75.0% 100.0% Surguja Count % 13.5% 86.5% 100.0% Count % 18.5% 81.5% 100.0%

6 62 Similarly, in Dhamtari District it was found that 25% respondents said that they did not have information about the minimum wage after the start of the Programme of, while 75% respondents said that as they got involved in the activities of, they did have the information about the minimum wage. Again in the District of Surguja it was found that 13.5% respondents were unaware of the minimum wage, while 86.5% respondents agreed to have information about the minimum wage after the launching of the. Table no presents the distance from the working place. It is found that 60.80% respondents live within the periphery of 5 km before the start of the, whereas 96.8% respondent agreed that the distance of the working place is within the 5 km after. Table-1.12: Work place distance Work place distance within 5 k.m Table no.1.13 explains that the people have had Rs before the while after the launching of the ; the wage rate has been hiked to Rs per day. Table-1.13: Daily Wage Rate Average (Rs) Rs The table clearly reflects the wage rate before. In the Bilaspur District 53.3% respondents were of the opinion that they got Rs. 40/-. While 45.2% respondents replied in the District of Dhamtari that they received Rs.40/- and in the District of Surguja 50% respondents responded that they got Rs. 60/-. Moreover, on an average 27.2% respondents said that they got Rs60/- and 23.9% respondents responded that they got the wage rate Rs. 40/- before. Table-1.14 Wage Rate ( ) Wage Rate District Bilaspur Count %.0% 20.0% 53.3% 13.3% 6.7% 6.7%.0%.0%.0% 100.0% Dhamtari Count % 3.2%.0% 45.2% 25.8%.0% 3.2% 9.7% 9.7% 3.2% 100.0% Surguja Count %.0%.0%.0% 23.9%.0% 50.0% 26.1%.0%.0% 100.0% Count % 1.1% 3.3% 23.9% 22.8% 1.1% 27.2% 16.3% 3.3% 1.1% 100.0% The table clearly reflects that the wage rate after in the District of Bilaspur, 66.7% out of 200 were of the opinion that they got Rs While 97.4% respondents replied in the District of Dhamtari that they received Rs. 132 and in the District o Surguja 79% respondents responded that they got Rs Moreover, overall if it is seen it was found that 68.7% respondents out of 600 responded positively that they got the wage rate Re. 132.

7 63 Table-1.15 Wage Rate( ) Wage Rate District Bilaspur Count %.6%.6%.0%.0%.6%.0% 66.7%.0%.0% 31.5% 100.0% Dhamtari Count %.0%.7%.7%.7%.0%.7%.0%.0%.0% 97.4% 100.0% Surguja Count %.0%.0%.0%.0%.0%.0% 1.1% 18.2% 1.1% 79.5% 100.0% Count %.2%.4%.2%.2%.2%.2% 23.0% 6.5%.4% 68.7% 100.0% The table depicts that 14.20% respondents were facing with the problem of partiality before while2.7% respondents replied they are facing this problem after the start of the Programme. Table-1.16: Partiality in Working Place Partiality The table presents that before, partiality condition in Bilaspur District was more as 83% respondents confirmed, while 17% respondents did not feel the problem of partiality. Whereas in the District of Dhamtari 80% respondents were of the opinion that they did not face the problem of partiality while 20% of the respondents did face the problem. Similarly in case of Surguja District, 94.5% respondents said before they did not face partiality in working area whereas 5.5% respondents said that before they faced partiality problem in working area. Table-1.17: Partiality in Working Place ( ) Partiality District Bilaspur Count % 83.0% 17.0% 100.0% Dhamtari Count % 80.0% 20.0% 100.0% Surguja Count % 94.5% 5.5% 100.0% Count % 85.8% 14.2% 100.0% The table presents that before, partiality condition in Bilaspur District 96% respondents said before they not faced partiality in working area whereas 4% respondent said before they faced partiality in working area, whereas in Dhamtari District 98.5% respondents said before they not faced partiality in working area whereas 1.5% respondent said before they faced partiality in working area, on the other side in Surguja District 97.5% respondents said before they not faced partiality in working area whereas 2.5% respondent said before they faced partiality in working area. Table-1.18: Partiality in Working Place ( ) Partiality District Bilaspur Count % 96.0% 4.0% 100.0% Dhamtari Count % 98.5% 1.5% 100.0% Surguja Count % 97.5% 2.5% 100.0% Count % 97.3% 2.7% 100.0% Table no shows that 81.70% respondents said before they faced employment problem whereas 20.70% respondents opined that after they faced employment problem, it means (81.70%>20.70%) 61% respondents said that after they have not faced employment problem.

8 64 Table-1.19: Employment Problem Employment Problem If employment problems taken District-wise, (table.1.20) it is found that before, employment problem condition was not faced by 22.5% respondents said before whereas 77.5% respondents said that they faced employment problem in working area. Whereas in Dhamtari District 9% respondents said before they did not face employment problem in working area while a big majority of 90.5% respondents said before they faced employment problem in working area. Similarly, in Surguja District 23.5% respondents said before they did not face employment problem in working area whereas 76.5% respondents said before they faced employment problem in working area. Table 1.20: Employment Problem ( ) Employment Problem District Bilaspur Count % 22.5% 77.5% 100.0% Dhamtari Count % 9.5% 90.5% 100.0% Surguja Count % 23.5% 76.5% 100.0% Count % 18.2% 81.5% 100.0% The table presents that after, employment problem condition in Bilaspur District 75.5% respondents said before they not faced employment problem in working area whereas 24.5% respondent said before they faced employment problem in working area, whereas in Dhamtari District 73% respondents said before they not faced employment problem in working area whereas 27% respondent said before they faced employment problem in working area, on the other side in Surguja District 89.5% respondents said before they not faced employment problem in working area whereas 10.5% respondent said before they faced employment problem in working area. Table-1.21: Employment Problem( ) Employment Problem District Bilaspur Count CONCLUSION % 75.5% 24.5% 100.0% Dhamtari Count % 73.0% 27.0% 100.0% Surguja Count % 89.5% 10.5% 100.0% Count % 79.3% 20.7% 100.0% Empirical evidence indicates that, payment for the wages earned was mostly paid in cash and after it paid through banks. This reveals that after the majority respondents came under financial inclusion which proves to be an achievement of the scheme. As far the awareness of minimum wage information has improved. The average wage rate of workers has gone up by 103 per cent. The discrimination in wage about cast and gender has been declined and employment availability in the region has also improved. Due to increasing employment availability, the overall quality of life of the beneficiaries has improved. Increasing average annual income facilitated a greater opportunity for children of workers. To sum up all we can say that the programme played an important role in changing wage rates and employment opportunities in Chhattisgarh. SUGGESTIONS The government has taken up various measures to overcome the problem of poverty, though recent poverty estimates shows that there is highest percentage poverty exists in Chhattisgarh, so there should be implementation of MGREGA or such type of programme on the large basis. Because of issuing a single job card for each family, during the survey work, it was found that, in some family like two or three members got benefit from this programme but for the large family members (like 12 to 14 members) did not get

9 65 benefit from the same programme. Therefore, there are requirement of multiple card for large family size. Form view point of human resource of Chhattisgarh State, there is a necessity of more links between MGNREGA and education. By increasing wages in nuxal areas, it may be possible that naxal people will be attractive towards this programme. Due to easy availability of employment in MGREGA and more work in non-agriculture sector, there is a low availability of labour in agriculture sector, so the effort should be, in the direction of agriculture and agro products. REFERENCES [1] Ambasta, P., Vijay Shankar, P.S., Mihir, S. (2008), Two Years of NREGA. The Road Ahead, Economic and Political Weekly, vol. 43,. 8, pp [2] Bhatia, Bela and Jean, Drèze. (2006), Employment Guarantee in Jharkhand: Ground Realities, Economic and Political Weekly, vol. 41, no. 29, pp [3] Chakraborty, Pinaki. (2007), Implementation of Employment Guarantee: A Preliminary Appraisal, Economic & Political Weekly, vol 42, no 07, p 551. [4] Datar, C. (2007), Failure of National Rural Employment Guarantee Scheme in Maharashtra, Economic and Political Weekly, vol. 42, no. 34, pp [5] Dreze, Jean and Christian Oldiges (2007), Commendable Act, Frontline, Vol 24,.14, pp [6] Jacob, Arun and Vergbese, Richard (2006), Reasonable Beginning in Palakkad, Kerala Economic and political weekly, Vol. XLI,. 48, pp [7] Khera, Reetika (2006), Employment Guarantee and Migration, in India Migration Newsletter, December, Vol. 1,. 3, p 08. [8] Louis, Prakash (2006), Birth Pangs in Bihar, Economic & Political weekly, Vol. 41,.48, pp [9] Mathur, Lalith (2009), Employment Guarantee Programme so far, Economic and Political weekly, Vol.4, no. 7, pp [10] Mathur, Lalit(2007), Employment Guarantee: Progress So Far, Economic and Political Weekly, vol. XLII,. 52, pp Website