MGNREGA: A Tool for Generation of Employment & Poverty Alleviation

Examining the Impact of MGNREGA on Employment Generation and Poverty Alleviation in Rural India

by Dhirendra Kumar Singh*,

- Published in Journal of Advances and Scholarly Researches in Allied Education, E-ISSN: 2230-7540

Volume 12, Issue No. 2, Jan 2017, Pages 1667 - 1670 (4)

Published by: Ignited Minds Journals


ABSTRACT

Many employment generation programmes are being introduced by the govt of India to fulfill the gap of employment generation in rural India. Gandhi national rural employment guarantee act is that the first ever act within the history of India to supply guaranteed work and wage. This paper studies the effect of MGNREGA on the generation of employment, sort of work done under this statute and up to what extent this programme is successful in poverty alleviation in rural India. Many researchers have found that this programme features a huge impact on the utilization structure of rural India. this paper studied and descriptions the role of MGNREGA in enhancing the livelihood of poor rural people through twin incorporation of labor with skill. Also, there's the necessity of overcoming the procedure of payment.

KEYWORD

MGNREGA, employment generation, poverty alleviation, rural India, guaranteed work and wage, utilization structure, livelihood, labor with skill, payment procedure

INTRODUCTION

It is being said that root of INDIA is in its rural community. The very core objective of this act is to offer every rural poor people a chance to figure during a guaranteed manner. There are countless poverty reduction programmes travel by Indian Government, though unfortunately, the present scenario remains an equivalent . Some were somewhat productive in tending to the difficulty of poverty while others experienced significant imperfections in their usage. within the year 2005, the Indian Government came up with the primary ever Rural Guarantee Act called Gandhi National Rural Employment Guarantee Act. Gandhi National Rural Employment Guarantee Act is that the first statute within the history of India empowering rural India with the facility of labor . This statute is milestone enactment within the Indian history after freedom. However, the proper to figure has been made a legal obligation and right for Unemployment remittances if there should arise an event of non-portion of job guaranteed through this Act. Talking further, the features of this act made this profoundly successful in most up-to-date 10 years from its foundation and gave solidness to the careless structure of provincial India. This statute is regarded and recognised comprehensively by administration of India and acknowledged on worldwide stage too. This program is taken into account to be "the largest and most ambitious Social Security and structure program within the world". In its World Development Report 2014, the planet Bank termed it a "stellar example of rural development". additionally , the 43rd Indian labour conference demands that program like MGNREGA should be implemented within the entire nation during a broad approach. The MGNREGA is unquestionably some extent of interest within the financial history of independent India which presents a widespread enforceable lawful ideal to the foremost fundamental sort of work with a selected end goal to evacuate unemployment and monetary hardship of the agricultural poor. The foundation of MGNREGA is to decrease the Poverty and useful within the eradication of hunger. Where this statute is securing the elemental right of villagers to figure and to form them more stable, additionally ensuring the financial foundation through giving guaranteed employment, it also seeks to reinforce work market result. the rise during a number of employee wage rates this law also empowers social prosperity and provides them firm establishment to measure , despite having different lack this law achieve the core desire of labor assurance, social protection and mental strengthening. The labour component of the NREGA is meant to account for a minimum of 60 per cent of total expenditure.

REVIEW OF LITERATURE

Kumar (2014) in his paper examined that Programme features a major impact on country. MGNREGA is playing pivotal role in rural employment generation and enhancing the agricultural livelihood. it's one among major wage employment initiative which provides a minimum of hundred days of employment within the country . employment within the country. Prasad (2012) recognised that the method outcomes include strengthening grass - root processes of democracy and infusing transparency and accountability in governance. it's enabled rural people with sufficient purchasing power and that they are ready to a minimum of to supports their basic necessity i.e. food. The Act has limited the agricultural poor to their areas and stopped migration to the cities. Xavier (2014) finds that the MGNREGA expands wage and consumption of the family units considered over the pre MGNREGA period and therefore the plan essentially improves the social and financial basic leadership energy to women within the men commanded rural culture. Ahangar (2014) examined that rural women are traditionally homebound; the utilization guarantee act played a big role in curbing gender discrimination and empowering rural women. The scheme is attractive especially for ladies because it stipulates that one-third of the entire workers should be women. Women are found to require this chance to freedom from their routine and tiresome family activities. Thus empowerment of girls has emerged as an unintended consequence of

MGNREGA-OBJECTIVES

The main aim of this study is to assess the generation of employment and therefore the way far the poverty is alleviated and the definite objectives are as per following: To analyse the role of MGNREGA for Generation of employment in Rural India. To know the viability of MGNREGA for Rural Growth. How MGNREGA ready to alleviate the status of poor rural people.

RESEARCH METHODOLOGY

The information gathered for the review incorporates secondary information. the various sources wont to gather secondary information incorporate reports of MGNREGA, research papers, journals and therefore the website of MGNREGA.

STUDY AND DISCUSSIONS

The day this act has inherit force the image of rural unemployment started getting unambiguous. Initially, there have been tons of uncertainties regarding pros and cons of the applicability of this statute. Although the concept of fixed wages to each person enrolled is that the strongest point among the whole . Also, inspiration, skills and self-reliance, disturbance of family relations, trouble in social life, migration and stress of gender inequalities. The statute contains many of its advantages which specifically or during a detour influenced the lifetime of rural population by giving them dependability and confirmation of labor , also helped in controlling migration in extraordinary extent. Less relocation from villages provides stability to the ladies and therefore the children of their family and opportunity to figure by building strong social environment. because the operations of MGNREGA was left to the Gram Panchayats. Payments of funds weren't comprehensive and planned, proving that the scheme isn't high on the priority list of state . Gandhi National Rural Employment Guarantee Act (MGNREGA) is usually , financed by the Central Government contributing 90% of the expenses, whereas, the government has got to contribute only 10%. Gandhi NREGA is one the recognised example of such scheme which may be a demand-driven statute.

GOVERNMENT OBJECTIVES OF

MGNREGA

1) Overall Development of the agricultural Economy The prime objective of this statute is to develop the bottom structure of the agricultural economy and therefore the only possible thanks to develop rural economy is by generating employment. This act helps to empower people at the grassroots level, which is completed by the govt effectively through this programme. 2) Creation of Durable and Useful Assets in Villages Here village panchayat has the responsibility to spot the infrastructure gap, estimate resources and employment generation by creating the missing infrastructure. this is often then forwarded to District panchayat followed by Block panchayat. By the implementation of this programme, there's the creation of the many durable useful assets leading to the generation of employment. 3) Reduction of Concerned Migration the main challenge ahead of Indian Government is that the instability of Indian economy and government were conscious of the very fact that the foremost portion of the population of the country resides within the country . additionally , they were also conscious about the relocations from the agricultural to urban and from one a part of a part of the agricultural to a different part of rural areas.

1) Demand for Work and Unemployment Allowance there's conscious stopping of labor by the government during certain seasons. Rationing of demand greatly challenges the poverty alleviation potential of the Scheme. Non-provision of dated receipts and work within 15 days and non-payment of unemployment allowance are other major process constraints. 2) Misappropriations within the Scheme Somehow the govt did not conduct the right implementation of this statute. there have been many pitfalls and various leakages during this programme. MGNREGA has received serious criticism on account of alleged misappropriations under the Scheme. While there's no denying that in several cases these are true. 3) Impact on Agricultural Labour Data from some studies demonstrate that there has been a change within the composition of the MGNREGA labour force where more agriculture labour is participating within the Scheme. As in rural India, there's the bulk of structural unemployment which arises thanks to agricultural work, and in time where were unemployed, they get themselves involve in other unskilled work. Here MGNREGA plays a chief role by generating employment.

CONCLUSION

Without doubt, MGNREGA is that the flagship programme and produced benefits when it involves the event of rural India. the entire employment structure has been changed by MGNREGA. Although, the programme has many parts which require developments. Above paper describe various pitfalls faced by this programme. When it involves the generation of employment MGNREGA has more job card holders but the allotment of labor isn't satisfactory. The shortcoming during this a part of MGNREGA is not any providence of labor when required by the cardboard holders, in respect of which Government has got to pay wages for that. Somehow data showed that MGNREGA is extremely much successful during a gripping rural economy. MGNREGA Stopped huge amount of relocations, availability of labor and in particular increment within the wage structure in rural India. Fixed wage allotment under MGNREGA results in change within the wage structure privately sector works done by the agricultural population. 1. Ahangar, G.B. (2014). Women Empowerment Through Mgnrega: A Case Study Of Block Shahabad Of District Anantnag, Jammu And Kashmir. National Monthly Refereed Journal of Research In Commerce & Management. 3. 55-62. 2. Government of India. (2005). Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Retrieved from http://www.nrega.nic.in/netnrega/home.aspx 3. Deininger, K., & Nagarajan, H. K. (2011). From temporary employment to permanent exit: A review of the evolution of MGNREGA in India. World Bank Policy Research Working Paper Series, (5762). Retrieved from https://openknowledge.worldbank.org/handle/10986/3490 4. Dreze, J., & Khera, R. (2010). The battle for employment guarantee. Economic and Political Weekly, 45(18), 43-51. Retrieved from https://www.jstor.org/stable/25663971 5. Keshlata, and Dr. Syed Nadeem Fatmi (2015), ‗The Contribution Of MGNREGA within the Empowerment Of The Scheduled Tribes Through Poverty Alleviation And Rural Development within the Sheopur District Of Madhya Pradesh: An Analytical Study‘, International Journal of Humanities and science Invention, vol. 4, pp. 58-71 6. Konch, U. (2013). Rural Employment Generation In India Through Gandhi National Rural employment Guarantee Scheme (MGNREGS). International Journal of Innovative Research & Development. 2(8), 48-57. 7. Swaminathan, M. S. (2007). MGNREGA and agricultural employment. Economic and Political Weekly, 42(52), 42-49. Retrieved from https://www.jstor.org/stable/4419972 8. Banerjee, A., & Duflo, E. (2011). Making public works work: The effect of workfare on poverty and inequality. American Economic Journal: Economic Policy, 3(1), 1-34. Retrieved from https://doi.org/10.1257/pol.3.1.1 9. Prasad, K.V.S. (2012). Performance of Gandhi National Rural Employment Guarantee Act MGNREGA): an summary .

Corresponding Author Dhirendra Kumar Singh*

MG Road, Veer Kunwar Singh Path, Aurangabad, Bihar