CHAPTER-III MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME: AN OVERVIEW

CHAPTER-III MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME: AN OVERVIEW 62

In a rural agrarian labour surplus economy, sections of rural population depend on the wages they earn through unskilled, casual, manual labour. They are vulnerable to the possibility of sinking from transient to chronic poverty in the event of inadequate labour demand or in the face of unpredictable crises that may be general in nature, like natural disasters or personal, like ill-health, all of which adversely impact their employment opportunities. In a context of poverty and unemployment, workfare programmes have been important programme interventions in developed as well as developing countries for many years. These programmes typically provide unskilled manual workers with short-term employment on public works such as irrigation infrastructure, afforestation, soil conservation and road construction. The rationale for workfare programmes rests on some basic considerations. The programmes provide income transfers to poor households during critical times and therefore enable consumption smoothing specially during slack agricultural seasons or years. In countries with high unemployment rates, transfer benefits from workfare programmes can prevent poverty from worsening, especially during lean periods. Durable assets that these programmes may create have the potential to generate a second-round of employment benefits as necessary infrastructure is developed. The need to evolve a mechanism to supplement existing livelihood sources in rural areas was recognized early during Development Planning in India. The Government implemented workfare programmes that offered wage employment on public works on minimum wages. The wage employment 63

programmes started as pilot projects in the form of Rural Man Power (RMP) [1960-61], Crash Scheme for Rural Employment (CRSE) [1971-72], Pilot Intensive Rural Employment Programme (PIREP) [1972], Small Farmers Development Agency (SFDA), Marginal Farmers and Agricultural Labour Scheme (MFAL) to the poorest of the poor. These experiments were translated into a full-fledged wage-employment programme in 1977 in the form of Food for Work Programme (FWP). In the 1980 s this programme was further streamlined into the National Rural Employment Programme (NREP) and Rural Landless Employment Guarantee Programme (RLEGP), Jawahar Rozgar Yojana (JRY1993-94) Employment Assurance Scheme (EAS), Employment Assurance Scheme (EAS). The Jawahar Rozgar Yojana (JRY) was merged with (Jawahar Gram Samridhi Yojana (JGSY) from 1999-2000 and was made a rural infrastructure programme. The programme was merged with the Sampoorna Grameen Rozgar Yojana from 2001-02 and National Food for Work Programme (NFFWP, 2005). These wage-employment programmes implemented by State Governments with Central assistance were self-targeting, and the objective was to provide enhanced livelihood security, especially of those dependent on casual manual labour. Centrally sponsored wage employment programmes, self-targeting in nature, were implemented to provide livelihood security by engaging labour on public works. 1 64

programmes: The following shortcoming was noticed in the earlier wage employment Lack of awareness, Lack of sincerity, Lack of community participation, Lack of complete awareness, Lack of planning, Panchayats not well equipped, Quality of assets created not always of requisite standard, Reports of false muster rolls, Problems in Payment: often less than prescribed wages and disparity between wages paid to women and men, Contractors persisted, Diversion of funds, Weak monitoring and verification systems, Lack of comprehensive data base, Inadequate capacity of implementing agencies, Multiple wage employment programmes running in parallel, Lack of Genuine will to decentralize, Lack of organization of the poor for greater participation, and Lack of Public Accountability In order to overcome the deficiencies in earlier programme, MGNREGA was designed and to ensure dignity of the rural people, it was given a legal status. The Mahatma Gandhi National Rural Employment 65

Guarantee Act (NREGA) is perhaps one of the most progressive and interesting bills passed by the Indian parliament in the recent times. Giving a statutory framework to wage employment programmes-based on the experience of these programmes, the Mahatma Gandhi National Rural Employment Guarantee Act (MgNREGA) was enacted to reinforce the commitment towards livelihood security in rural areas. The Act was notified on 7th September, 2005. The significance of MGNREGA lies in the fact that it creates a right-based framework for wage employment programmes and makes the Government legally accountable for providing employment to those who ask for it. In this way, the legislation goes beyond providing a social safety net towards guaranteeing the right to employment. The Parliament enacted the National Rural Employment Guarantee Act in 2005 expressing the consensus of the State to use fiscal and legal instruments to address the challenges of unemployment and poverty. This was the first time a country had passed a law of this nature and scale, guaranteeing livelihood security to rural households. 2 The rationale for such a legislation was based on the need to provide a social safety net to rural households as well as to create assets that rejuvenate the natural resource base of their livelihood. In an economy where 60 per cent of the people depend on agriculture for livelihood, a major share of the rural population is vulnerable to the vagaries of monsoon as an overwhelming share of the gross cropped area is rain-fed. These households run the risk of sinking from transient to chronic poverty, in case of any 66

exigency, especially during slack agricultural seasons or years. Income transfers to poor households during these critical times become necessary. 3 MGNREGA: Objectives The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) aims at enhancing the livelihood security of the households in rural areas of the country by providing at least one hundred days of guaranteed wage-employment in every financial year to every household whose adult members volunteer to do unskilled manual work. The objective of the Act is to create durable assets and strengthen the livelihood resource base of the rural poor. The choice of works suggested in the Act addresses the causes of chronic poverty like drought, deforestation and soil erosion, so that the process of employment generation is maintained on a sustainable basis. MGNREGA: Salient Features The salient features of the Act are summarized below: 4 a) Adult members of a rural household may apply for employment if they are willing to do unskilled manual work. b) Such a household will have to apply for registration to the local Gram Panchayat in writing or orally. c) The Gram Panchayat, after due verification, will issue a Job Card to the household as a whole. The Job Card will bear the photograph of all adult members of the household willing to work under MGNREGA. The Job Card with photograph is free of cost. 67

d) A Job Card-holding household may submit a written application for employment to the Gram Panchayat, stating the time and duration when work is sought. The application for work must be for at least fourteen days of continuous work. e) The Gram Panchayat will issue a dated receipt of the written application for employment, against which the fifteen-day guarantee to provide employment operates. f) Employment will be given within 15 days of submitting the application for work or from the date when work is sought by an employment seeker. g) If employment is not provided within 15 days, a daily unemployment allowance in cash has to be paid. Liability of payment of Unemployment Allowance is on the States. h) At least one-third of persons to whom work is allotted have to be women. i) Wages are to be paid according to minimum wages as prescribed under the Minimum Wages Act 1948 for agricultural labourers in the State, unless the Centre notifies a minimum wage rate which in any case shall not be less than Rs. 60 per day. j) Disbursement of wages has to be done on a weekly basis and not beyond a fortnight. k) Panchayat Raj Institutions [PRIs] have a principal role in planning and implementation. l) Each district has to prepare a shelf of projects. The instruments for providing employment are to be works selected from the list of permissible works. Permissible works are as follows: Water Conservation. 68

Drought Proofing (including plantation and afforestation). Irrigation canals including micro and minor irrigation works. Minor Irrigation, horticulture and land development on lands of SC/ST/BPL/IAY and Land Reform beneficiaries. Renovation of traditional water bodies. Land Development. Flood Protection. Rural Connectivity. The shelf of projects has to be prepared on the basis of priority assigned by the Gram Sabha. At least 50 per cent of works have to be allotted to Gram Panchayats for execution. A ratio of 60:40 between wages and materials has to be maintained. Contractors and use of labour-displacing machinery is prohibited. m) Work should ordinarily be provided within a 5 km radius of the village or else extra wages of 10 per cent are payable. n) Worksite facilities such as creche, drinking water, shade have to be provided. o) Social Audit has to be done by the Gram Sabha. p) Grievance redressal mechanisms have to be put in place for ensuring a responsive implementation process. q) All accounts and records relating to the Scheme are to be made available to any person desirous of obtaining a copy of such records on demand and after paying a specified fee. 69

Paradigm Shift from Wage Employment Programmes MGMGNREGA marks a paradigm shift all precedent wage employment programmes. The significant aspects of this paradigm shift are captured below: 5 a) MGNREGA provides a statutory guarantee of wage employment. b) It provided a rights-based framework for wage employment. Employment is dependent upon the worker exercising the choice to apply for registration, obtain a Job Card, and seek employment for the time and duration that the worker wants. c) There is a 15 days time limit for fulfilling the legal guarantee of providing employment. d) The legal mandate of providing employment in a time bound manner is underpinned by the provision of Unemployment Allowance. e) The Act is designed to offer an incentive structure to the State for providing employment as ninety percent of the cost for employment provided is borne by the Centre. There is a concomitant disincentive for not providing employment as the States then bear the double indemnity of unemployment. f) Unlike the earlier wage employment programmes that were allocation based. MGNREGA is demand driven. Resource transfer under MGNREGA is based on the demand for employment and this provides another critical incentive to States to leverage that Act to meet the employment needs of the poor. g) MGNREGA has extensive inbuilt transparency safeguards. 70

1) Documents: Job Cards recording entitlements (in the custody of workers) written application for employment, Muster Rolls, Measurement Books and Asset Registers. 2) Processes: Acceptance of employment application, issue of dated receipts, time bound work allocation and wage payment, Citizen Information Boards at worksites, Vigilance Monitoring Committees, regular block, district and state level inspections and social audits. h) The public delivery system has been made accountable, as it envisages an Annual report on the outcomes of MGNREGA to be presented by the Central Government to the Parliament and to the Legislature by the State Government. Specifically personnel responsible for implementing the Act have been made legally responsible for delivering the guarantee under the Act. i) There has been quite a sharp increase both in the number of total person days generated as well as per household, under this scheme. In many states, a sharp improvement from the first year to the second year, in terms of employment generated, can be quite observed. Funding for NREGP The Central Government will bear the costs on the following items: 6 The entire cost of wages of unskilled manual workers, 75per cent of the cost of material and wages of skilled and semi skilled workers, Administrative expenses as may be determined by the Central Government which will include inter alia, the salary and allowances of the Programme Officer and his supporting staff, worksite facilities, 71

Expenses of the National Employment Guarantee Council. While the State Government will bear the costs on the following items, 25per cent of the cost of material and wages of skilled and semi-skilled workers, Unemployment allowance payable in case the State Government cannot provide wage employment on time; and Administrative expenses of the State Employment Guarantee Council. National Employment Guarantee Fund The Central Government is to establish a fund to be called the National Employment Guarantee Fund to be managed according to the Rules, which are under the consideration of Law Department. The Grants to the State Government/districts in the State for implementation of National Employment Guarantee Scheme is to be released out of the National Employment Guarantee Fund. Institutional Mechanism for the Implementation of MGNREGS The state administration from the central level down to the village level as well as Panchayati Raj Institutions has been entrusted with joint responsibility to implement the scheme as under. Central Employment Guarantee Council At the Central level, a Central Employment Guarantee Council (CEGC) will be constituted to deal with the matters concerning dissemination of information, implementation, supervision, monitoring and grievance redressal. The CEGC will consist of members from different fields like senior officials of central ministries, planning commission, state governments, including 15 non- 72

officials comprising 02 chairpersons of the Zilla Parishad (ZP) by rotation, 1/3 women and not less than 1/3 SCs/STs/OBCs/Minorities. 7 State Employment Guarantee Council At the state level, a State Employment Guarantee Council (SEGC) shall be constituted, which will comprise of members nominated by the Panchayat Raj Institutions (PRIs), organization of workers and disadvantaged groups including 1/3 women, and 1/3 SCs/STs/OBCs/Minorities. The SEGC, besides advising the state government on matters concerning the implementation of the scheme, monitoring, supervision, dissemination of information, shall determine the prepared works and will place the prepared annual report before the state legislature. District Project Coordinator (DPC) at the District Level District Project Coordinator (i.e., CEO of Zilla Parishad/District Panchayat or Collector) will be responsible for implementation of NREGS at the district level, who will further assist the District Panchayat in discharging its functions, i.e., consolidation of block plans for inclusion in the shelf of projects to be approved by ZP, according necessary sanctions and administrative clearance, coordinate the Programme Officers, reviewing, monitoring and supervision of PO s, conduct periodic inspections of the works in progress, redressal of grievances and preparing budget for the next year. 8 Programme Officer at the Block/Mandal Level Programme Officer at the Block/Mandal level under the overall direction, control and supervision of the District Project Coordinator (DPC), will assist the Panchayat Samiti/Mandal Parishad in discharge of its functions 73

under the MGNREGS, who shall be responsible for matching the demand for employment and employment opportunities arising from projects, consolidating project proposals under the jurisdiction of Panchayat Samiti/Mandal Parishad prepared by Gram Panchayats and received from Intermediate Panchayat, monitoring, sanctioning, ensuring payments of unemployment allowance, prompt and fair payment of wages, ensuring regular social audits and grievances redressal. 9 The powers to scrutinize and sanction of works has been given to the Programme Officer. Programme Officer shall allot at least 50 per cent works in terms of its cost under MGNREGS to Gram Panchayat. He will supply muster rolls and a list of available employment opportunities to the GP. PO shall be responsible for ensuring provision of unskilled manual work in accordance with the provision of the scheme within 15 days of receipt of the application or from the date he seeks work in case of advance application. Main Responsibilities of Various Actors/Administrators under MGNREGA Responsibilities of Gram Sabha (GS) Recommend projects required in their area to GP. Monitor the execution of works within the GP. Conduct regular Social Audit of all projects taken up in the GP. Responsibilities of Gram Panchayat (GP) Register households, verify and issue job cards. Receive applications for work and issue dated receipt. Forward applications to the PO. 74

Inform applicants (through notice board) when work is available. Prepare an annual development plan as per the recommendations of Gram Sabha (GS) and execute these. Make available all relevant documents including muster rolls to the GS for social Audit. Prepare an annual Report on the implementation of the scheme. Responsibilities of Panchayati Samiti/ Mandal Parishad in Implementation of MGNREGS The following are the major responsibilities of Panchayat Samiti/Mandal Parishad for effective implementation of MGNREG scheme. 10 Send proposals of works to be taken up to the Programme Officer (PO) and implement projects that have been sanctioned by him. Supervise and monitor the projects taken up at the Gram Panchayat (GP) and block level. Approve the block plan and forward it to the district Panchayat for final approval. Key Initiatives The key Initiatives in process so that MGNREGA may optimally realize its full potential are briefly highlighted here: 11 i) Enabling Articulation of Demand for Employment. Since MGNREGA is a Rights-based programme, articulation of demand by the rural poor is the basic premise of its operation. The demand process of MGNREGA distinguishes it from other wage-employment programmes and also constitutes its biggest challenge, especially if wage 75

seekers are not literate and not organised. Generating awareness among local rural communities through Information, Education and Communication (IEC) becomes critical for enabling the rural poor to articulate demand. States have forged a variety of methods for communication and social mobilisation that include preparation of communication material on MGNREGA processes in simple local language, one day orientations of Sarpanches/ Ward Members, convening Gram Sabhas, using district teams for village level interactions, local vernacular newspapers, TV and radio spots, pamphlets and brochures and local cultural forms. Innovative methods like Information counters on local market days, Village Information Walls, fixing a Rozgar Day in the week and establishing a Helpline have also been used. ii) Planning for Works and the Quality of Assets Created The Act guarantees providing employment within fifteen days of demand and the instrument for providing employment is unskilled manual work selected from the list of permissible works. This legal guarantee has implication for the way in which works have to be planned. A Labour Budget has been stipulated under the Act as an instrument to facilitate advance planning, whereby districts estimate their labour demand for the ensuing financial year by December end. Districts prepare shelves of projects to keep a list of works ready to meet employment demand. iii) Record of Work Done and Payment of Wages The legal guarantee of the Act mandates that wages due to workers be paid within fifteen days of work completion. This requires that a fair record be maintained for the work done. Key factors involved in ensuring this are ( a) 76

proper maintenance of muster rolls (b) timely measurement and record in the measurement books (c) realistic formulation and notification of schedule of rates. a) Maintenance of authentic muster rolls To ensure authentic muster rolls are used, numbered muster rolls are to be issued for each sanctioned work by Programme Officer and maintained on the work site by the executing agency. Muster rolls must mention Job Card numbers of workers, days worked, quantum of work done, the amount paid and must have space for recording inspections. Muster rolls are to be read out on the work-site during measurement and wage payment to prevent bogus records. Entries in the muster roll have to be correspondingly recorded in the Job Cards of the workers. Updating of muster roll data at the block level computers in a 15 days cycle needs to be ensured. All muster rolls are to be made available for public scrutiny on the MGNREGA website. 12 b) Measurement and supervision of work done Regular measurement and supervision of works has to be done by qualified technical personnel on time. Measurement needs to be recorded in authenticated measurement books and measurement details need to be read out to workers. c) Schedule of Rates The Act stipulates that a worker working seven hours should normally earn an amount equal to the wage rate. The Act directs that task rates should be fixed so that this objective is fulfilled. The Schedule of Rates needs to be 77

reviewed on the basis of Work-Time-Motion-Studies and be made transparent so that workers know the rates payable for a specific quantum of work. iv) Vigilance and Transparency Since the Act seeks to establish a rights-based framework for wage employment, it places a strong emphasis on vigilance and transparency. Key strategies in this direction include: a) MIS: A web-enabled Master Information System (MIS) www.nrega.nic.in has been developed that seeks to place all information in the public domain. It is a household level data base and has internal checks for ensuring consistency and conformity to normative processes. All critical parameters get monitored in public the domain: a) workers' entitlement data and documents such as registration, Job Cards, muster rolls (b) work selection and execution data including shelf of approved and sanctioned works, work estimates, works under execution, measurement (c) employment demanded and provided (d) Financial indicators such as funds available, funds used, and the disaggregated structure of fund utilisation to assess the amount paid as wages, materials and administrative expenses. Since the MIS places all critical data on the web and this data is software engineered, it has significant advantages in terms of transparency as it allows cross verification of records and generation of reports on any parameter of the Act. The aim is to ensure connectivity at the block / Mandal level on priority and wherever possible, at the Gram Panchayat level A Geographic Information System is also being planned for MGNREGS. 13 78

b) Monitoring and Evaluation: Field verification of MGNREGS processes is through external and internal agencies and the feedback is shared with the States for follow up. National Level Monitors have visited all Phase One MGNREGA districts. Independent concurrent studies have also been taken up. States are expected to ensure 100 per cent verification at block, 10 per cent at district and 2 per cent at the state level especially of Work, Muster rolls, and Records. Setting up and training local vigilance and monitoring committees has also been emphasized for bringing in lateral transparency. v) Public Accountability While placing data in the public domain, monitoring and evaluation create systems of accountability, the Act contains specific provisions for public accountability. Based on the statutory directives, a three-pronged strategy for public accountability has been adopted: a) Proactive Disclosure: Annual Reports on outcomes to the Parliament and the state legislature are mandated. Annual Report for the year 2005-2006 has been tabled in Parliament. In addition, the Minister for Rural Development has tabled a statement on NREGA in every session, since the passage of the Act. b) Information upon Payment through Right to Information Act (RTI): Documents have to be made available to the public on payment of a prescribed fee. This is stipulated in MGNREGA, Schedule I, Para 17, 18. 79

c) Social Audit: Section 17 of MGNREGA provides for social audit of all works in a Gram Panchayat by the Gram Sabha and the Gram Panchayat has to provide records for social audit. Social Audit is a compulsory element in MGNREGA. Social audit processes can be divided into pre social audit processes, processes during social audit and follow-up processes after social audit. Pre Social Audit Processes include: 1. Planning and preparation of a social audit calendar Gram Panchayat wise. 2. Wide communication of the intent and date of social audit to all key stakeholders: Government functionaries, PRIs, local community 3. Constitution of Resource Groups - At the State, District, Block/ Mandal and Village levels with officials and non-officials. 4. Involvement of civil society in the social audit process. 5. Preparation, printing and distribution of social audit kits 6. Training of the Resource Groups in each level. Processes during Social Audit a. Village Social Auditors to inform the Gram Panchayat of their intent to do social audit. b. All records made available to village social auditors. c. Verification of records by cross checking with beneficiaries, and works (if in progress). Mandatory verification of application and job cards issued, demand and allocation of employment within the given time, muster rolls, work estimates, sanctions and expenditures, measurement books and payments, cross verification with jobcards. 80

These verifications are made either through door to door visits or through informal Gram Sabhas. 14 d. Public Meeting (Gram Sabha) at the Gram Sabha where village social auditors read and discuss their findings. Concerned beneficiaries can give evidence. Concerned functionaries will explain if irregularities are noticed. Report of the social audit to be prepared and submitted to the Gram Panchayat, Programme Officer and District Programme Coordinator. Follow up processes on Social Audit District Programme Coordinators to discuss findings with Programme Officer and initiate remedial action. Where there are serious prima facie matters of financial irregularities, further departmental enquiry to be initiated. Findings of social audit with follow up action to be made public and will be placed on the website. vi) Grievance Redressal Enforcement of the right to employment requires setting up an effective grievance redressal system. The Act vests the responsibility for grievance redressal with the Programme Officer. Efforts are on to strengthen grievance redressal mechanisms at all levels. vii) Strengthening Management Support to MGNREGA a) Central Employment Guarantee Council: 15 At the State level: 4 per cent of the total cost to be used administrative cost enabling resource support for deploying additional personnel critical to implementation, viz. the Gram Rozgar Sewak (Field 81

Assistant) at the GP level and Programme Officer, engineers, IT and accounts personnel at the Block/ Mandal Level and at the level of the Ministry: Central Employment Guarantee Council (CEGC) has been set up. CEGC members will actively involves in field visits, social audit along with the State Government/District officials. Executive Committee has been set up. The Technical Secretariat is being set up to infuse multi-disciplinary professional expertise for technical resource support. Design, Information and National Data System, Social audit, Monitoring and Evaluation. Coverage of Districts under NREGS The NREG Act is applicable to areas notified by the Central Government. In its first phase, it was notified in 200 districts across the country. In the second phase the Act has been notified in the financial year 2007-08 in an additional 130 districts, bringing the total of number of districts covered by MGNREGA to 330. In these districts, pre-existing wage employment programmes, the National Food for Work Programme (NFFWP) and the Sampoorna Grameen Rozgar Yojana (SGRY) were merged with MGNREGA. The remaining rural areas of the country have been notified on 28th September, 2007 where NREGA will come into force w.e.f. 1st April, 2008. The table 3.1 gives a clear picture of state wise coverage of districts under three phases of NREGs implementation. 82

Table 3.1 Phase wise Districts notified under Mahatma Gandhi National Rural Employment Guarantee Act S. No. Name of the Region Phase I Phase II Phase III Total 1 Madhya Pradesh 18 13 19 50 2 Odisha 19 5 6 30 3 Bihar 23 15 0 38 4 Andhra Pradesh 13 6 3 22 5 West Bengal 10 7 2 19 6 Jharkhand 20 2 2 24 7 Chattishgarh 11 4 3 18 8 Maharashtra 12 6 15 33 9 Gujarat 6 3 17 26 10 Rajasthan 6 6 21 33 11 Dadra and Nagar Haveli 0 0 1 1 12 Goa 0 0 2 2 13 Meghalaya 2 3 2 7 14 Arunachal Pradesh 1 2 13 16 15 Nagaland 1 4 6 11 16 Manipur 1 2 6 9 17 Mizoram 2 2 4 8 18 Tripura 1 2 1 4 19 Sikkim 1 2 1 4 20 Assam 7 6 14 27 21 Himachal Pradesh 2 2 8 12 22 Uttar Pradesh 22 17 32 71 23 Uttaranchal 3 2 8 13 24 Jammu & Kashmir 3 2 17 22 25 Karnataka 5 6 19 30 26 Kerala 2 2 10 14 27 Tamil Nadu 6 4 21 31 28 Andaman and Nicobar Islands 0 0 3 3 29 Lakshadweep 0 0 1 1 30 Pudicherry 0 0 2 2 31 Punjab 1 3 16 20 32 Haryana 2 2 17 21 33 Daman and Diu 0 0 2 2 34 Chandigarh 0 0 1 2 Total 200 130 295 625 Source: Ministry of Rural Development, Government of India. 83

Expansion and Growth of MGNREGS in India The Act is applicable to areas/districts notified by the Central Government from time to time. In these districts, pre-existing wage employment programmes, the National Food for Work Programme (NFFWP) and the Sampoorna Grameen Rozgar Yojana (SGRY) were merged with MGNREGA. Table 3.2 gives the progress of the scheme during last five years. 84

Table-3.2 Growth of MGNREGS in India during the year 2006-07-2011-12 Particulars 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Total Job Card issued 3.78 Crore 6.48 Crore 10.01 Crore 11.25 Crore 11.98 Crore 12.39 Crore Employment provided to households: 2.10 Crore 3.39 Crore 4.51 Crore 5.26 Crore 5.49 Crore 5.04 Crore Person days [in Crore]: Total: 90.5 143.59 216.32 283.59 257.15 216.34 SCs: 22.95 [25%] 39.36 [27%] 63.36 [29%] 86.45[30%] 78.76 [31%] 47.70 [22%] STs: 32.98 [36%] 42.07[29%] 55.02 [25%] 58.74 [21%] 53.62 [21%] 39.59 [18%] Women: 36.4 [40%] 61.15 [43%] 103.57 [48%] 136.4 [48%] 122.74 [48%] 103.81 [48%] Others: 34.56 [38%] 62.16 [43%] 97.95[45%] 138.4[49%] 124.78 [48%] 129.06[60%] Person days per HH 43 days 42 days 48 days 54 days 47 days 43 days Budget Outlay: (In Rs Crore) 11300 12000 30000 39100 40100 40000 Central Release: (In Rs Crore) 8640.85 12610.4 29939.6 33506.6 35769 29189.8 Total available fund [including OB]: In Rs. Crore. 12073.6 19305.8 37397.1 49579.2 54172.1 48832.5 Expenditure (In Rs. Crore.) [percentage 8823.35 15856.9 27250.1 37905.2 39377.3 38034.7 against available funds] Expenditure on Wages (In Rs. Crore.) [73%] 5842.37 [66%] [82%] 10738.5 [68%] [73%] 18200 [67%] [76%] 25579.3 [70%] [73%] 25686.5 [68%] [78%] 24860.9 [69%] Total works taken up (In Lakhs): 8.35 17.88 27.75 46.17 50.99 82.51 Works completed: 3.87 8.22 12.14 22.59 25.9 18.56 Works break up: Water conservation: 4.51 [54%] 8.73 [49 %] 12.79 [46%] 23.43 [51%] 24.26 [48%] 44.09 [53%] Provision of Irrigation facility to land owned by SC/ST/ BPL and IAY beneficiaries: 0.81 [10%] 2.63 [15 %] 5.67 [20%] 7.73 [17%] 9.15 [18%] 9.52 [12%] Rural Connectivity: 1.80 [21%] 3.08 [17 %] 5.03 [18%] 7.64 [17%] 9.31 [18%] 17.87 [22%] Land Development: 0.89 [11%] 2.88 [16%] 3.98 [ 15%] 6.38 [ 14%] 7.04 [ 14%] 7.69 [9%] Any other activity: 0.34 [4%] 0.56 [3%] 0.28 [1%] 0.98 [2%] 1.06 [2%] 3.06 [4%] Rajiv Gandhi Seva Kendra - - - - 0.17 [0.33%] 0.28 [0.34%] Source: Ministry of Rural Development, Government of India. It is evident from table 3.2 that during six years of MGNREGS implementation the number of households benefited by the scheme is more than double. To be more precise in 2006-07 2.10 crore households were benefited and by 2010-11 it increased to 5.49 crore households. But in the following year i.e. 2011-12 the employment provided households reduced to 5.04 crore. The total number of person days gradually increased during first 4 85

years of study. But in last two years the person days gradually declined and stood at 216.34 crore. The percentage of Scheduled Caste households participation under MGNREGS is showing upward trend during first 5 years of study and declined in the last year of study. On the other hand, the percentage of Scheduled Tribe participation is not evenly distributed over the years. It ranges from 18 to 36 per cent. Comparing to above two social categories the participation rate of women is high, which ranges from 40 to 48 per cent. The average person days per households is not evenly distributed over the years. The total work under taken under the scheme is gradually increasing nearly 10 times during six years of study. On the other hand, work completion rate increased more than five times. The cause for poor work completion rate can be attributed to disputes with regard to some specific works, lack of coordination etc. Among the completed works high percentage of works are undertaken for water conservation. Around 10 to 20 per cent of completed works, irrigation works for SCs and STs were taken up. Rural connectivity works and land development works ranges from 17 to 22 per cent and 9 to 15 per cent respectively. The budgetary allocations, central releases and total available funds for the implementation of the scheme gradually increased during first 5 years of study. The percentage of expenditure against available funds ranges from 73 to 82 per cent. 86

MGNREGS in Andhra Pradesh The implementation of MGNREGA calls for the formulation of Rural Employment Guarantee Scheme by the State Governments. The Scheme so formulated would have to provide for the minimum features specified in Schedule I of the Act and may prescribe conditions, which are without prejudice to the conditions specified in Schedule II of the Act. Accordingly, the Government of Andhra Pradesh has formulated the rules and regulations for the implementation of the Scheme on 28 th January 2006 to provide not less than one hundred days of guaranteed wage employment in a financial year to every household in rural areas covered under the Scheme and whose adult members volunteer to do unskilled manual work subject to the conditions stipulated in the Act and notified in the Scheme. Growth of MGNREGS in Andhra Pradesh state. Table 3.3 gives the phase wise expansion of the programme in the Table - 3.3 Phase wise Coverage of Districts under MGNREGS in Andhra Pradesh Sl. No. Phases Month and Year Districts Covered 1 Phase-I February 2006 Adilabad, Anantapur, Chittoor, Kadapa, Karimnagar, Khamam, Mahaboob Nagar, Medak, Nalgonda, Nizamabad, Ranga Reddy, Vijayanagaram, Warangal 2 Phase-II May 2007 East Godavari, Kurnool, Guntur, Nellore, Prakasam and Srikakuklam 3 Phase-III April 2008 Krishna, Visakhapatnam, West Godavari Source: Ministry of Rural Development, Government of Andhra Pradesh. 87

Table 3.3 shows that during the first phase the MGNREGS was launched in 13 districts of Andhra Pradesh, out of which all nine districts are from Telangana region of the state. In Rayalaseema region 3 districts and in coastal Andhra only one district was covered. The fundamental reason for the inclusion of large number of districts in Telangana and Rayalaseema region is that these districts are not well developed, when compared to other coastal districts of the state. During the second phase the scheme extended to 6 districts of the state, in which 5 districts are from coastal Andhra and one from Rayalaseema region. In the last phase 3 districts of coastal Andhra were covered under the scheme. In all 22 out of 23 districts were covered by the scheme. As this scheme is intended to provide employment for the rural poor, the district of Hyderabad is not covered under this scheme. The progress of MGNREGS in Andhra Pradesh since inception is presented in tables 3.4 and 3.5. 88

Table- 3.4 Caste-Wise House Hold Employment Analysis in Andhra Pradesh Particulars 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 No of HHs issued Job cards 13325449 13325449 13325449 13325449 13325449 13325449 No of HHs working 2174798 4685014 5704026 6076171 5988035 4875930 % of HHs working 16.32 35.16 42.81 45.60 44.94 36.59 SC HHs working 625053 1252036 1478032 1539380 1505964 1300971 % of SC HHs working 19.27 38.61 45.58 47.47 46.44 40.12 ST HHs working 288212 560055 695532 773687 764693 647061 % of ST HHs working 19.02 36.96 45.90 51.06 50.46 42.70 BC HHs working 1038619 2298593 2810805 3054440 3015645 2385884 % of BC HHs working 16.28 36.02 44.05 47.87 47.26 37.39 Others HHs working 222914 574330 719657 708664 701733 542014 % of Others HHs 10.20 26.27 32.91 32.41 32.09 24.79 Source: Ministry of Rural Development, Government of Andhra Pradesh. As per table 3.4 the number of households working under MGNREGS in the state has gradually increased during first 4 years of study. The number of working households declined from 2010-11. During the six years of its implementation the percentage of working households also registered gradual increase except 2010-11 and 2011-12. During the second year of study the percentage of SC households working under MGNREGS is nearly doubled. On the other hand, during the last two years of study they registered negative growth. The percentage of ST working households has also registered upward growth during the four years of study. During the last two years of study the STs participation rate is decreased slightly. On the other hand the 89

BC and others participation rate under MGNREGS works in state showing same trends. Table-3.5 Year-wise total Person Days and Average wages Particulars 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Households registered 13325449 13325449 13325449 13325449 13325449 13325449 Households working Households total days Households total wage (in Lakhs) Household avg. wage 2174798 4685014 5704026 6076171 5988035 4875930 66132625 201163044 228306017 392200822 304348749 287437442 53644.90 165751.80 188291.58 352792.83 292207.65 277053.56 81.12 82.40 82.47 89.95 96.01 96.39 Source: Ministry of Rural Development, Government of Andhra Pradesh. Table 3.5 shows an increase in the total number of working households year after year during first 4 years of study. In the same way there is a corresponding increase in the total household man days, which also enhanced total wage amount during last 4 years of study. During the first four years of implementation, the total number of household days increased by 5.9 times, whereas wage amount increased by 6.5 times. As such the average household wages also registered positive growth in the state. It is regrettable to note that the participation rate from 2010-2011 showing downward trend in all aspects. 90

References 1. Imbert, Clement and John Papp, Estimating Leakages in India s Employment Guarantee in Reetika Khera (ed.), The Battle for Employment Guarantee, New Delhi: Oxford University Press, 2011, p.15. 2. National Rural Employment Guarantee Act: two Years, Department of Rural Development, Ministry of Rural Development Government of India, New Delhi, p.3. 3. Four Years of Implementation of Rural Development Programmes (2004-2008), Ministry of Rural Development, Government of India. p.2. 4. Puran Singh, National Rural Employment Guarantee Scheme: A Task Ahead, Kurukshetra, Vol.54, No.7, May,2006. pp.42-43. 5. Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (Mahatma Gandhi NREGA), Operational Guidelines 2013, 4th Edition, Ministry of Rural Development Government of India, New Delhi, p.24. 6. Ibid, p.28. 7. G.O.Ms.No.27, Panchayat Raj and Rural Development (RD-II) Department, Dated, 28.01.2006. 8. Operation manual 2006, Andhra Pradesh Rural Employment Guarantee Scheme, Department of Rural Development, Government of Andhra Pradesh. p.3. 9. Government of India Lr. No.24011/5/2005-NREGA, dated 21-02-2006. 10. G.O.Ms.No.80, Panchayati Raj and Rural Development (RD-II) Department, dated 22-03-2006. 91

11. Annual Report 2006-07, Department of Rural Development, Government of Andhra Pradesh. 12. Annual Report 2006-07, Department of Rural Development, Government of Andhra Pradesh. 13. G.O.Ms.No.27, Panchayat Raj and Rural Development (RD-II) Department dated: 28.01.2006. 14. Operation manual 2006, Andhra Pradesh Rural Employment Guarantee Scheme, Department of Rural Development, Government of Andhra Pradesh. p.3. 15. G.O.Ms.No.27, Panchayat Raj and Rural Development (RD-II) Department, Dated. 28.01.2006. 92