Performance Analysis of Mahatma Gandhi National Rural Employment Guarantee Scheme

Abstract

The Eleventh Plan (2007-12) has set the correct goal in the form of moving Towards Faster and more Inclusive Growth”, which ensures broad based improvement in the quality of life of the people, especially the poor. The planning commission has given a long catalogue to Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). National Rural Employment Guarantee Act (NREGA), 2005 is a historic measure to implement its promise of ‘Right to Work’ by the UPA Government. The law was initially called the NRGEA, but it was renamed as MGNREGA on October 2, 2009. The extension of the MGNREGA to the whole country is an unprecedented opportunity to build the foundations of a social security system in rural India, revive village economies, promote social equity, and empower rural labour. The budget for the year 2009-10, marks the deepening and broadening of the Government, social inclusion agenda. The MGNREGA coverage increased to 4.74 crores households in FY’09. The allocation in the budget is Rs.39,100 crores, which is a partly increase of Rs.2,350 crores over the amount spent in last year. This article examines the performance of the MGNREGS since its launch in mid-2005. It first provides features and summary of performance analysis in certain areas and then highlights specific weaknesses of the MGNREGA. Finally, it describes the challenges that lie ahead and suggests how these can be overcome.