Context:
A parliamentary committee has strongly argued for the revision of wages under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in view of the rising cost of living.
Key Recommendations
- Revision of Wage Rates
- The committee urged the government to revise MGNREGS wages in response to rising living costs.
- Expressed disappointment over the government’s inaction despite repeated recommendations.
- Uniform Wage Structure
- Proposed a uniform wage rate across all States and Union Territories.
- Highlighted disparities in current wages, ranging from ₹234 (Nagaland & Arunachal Pradesh) to ₹374 (Haryana & Sikkim).
- Argued that since the scheme is centrally funded, wage uniformity would ensure fairness and consistency.
- Reassessment of Wage Calculation Method
- Criticized the current wage linkage to Consumer Price Index (CPI) for agricultural labourers, stating it does not accurately reflect inflation.
- Recommended an updated wage calculation system to match ground realities.
Concerns Over Delayed Payments
- Pending liabilities as of February 15: ₹23,446.27 crore (including ₹12,219.18 crore in wage dues).
- Impact on Budget:
- Out of the ₹86,000 crore allocated for the scheme in the current fiscal year, nearly ₹23,446 crore will be used to clear past dues.
- Effective budget for new projects reduced to ₹62,553.73 crore, limiting the scheme’s effectiveness.
West Bengal’s Case & Centre-State Conflict
- Fund Suspension Since March 2022:
- The Centre froze funds to West Bengal over allegations of corruption, citing Section 27 of MGNREGA, 2005.
- Led to distress migration and economic hardships in rural areas.
- Committee’s Recommendation:
- West Bengal should receive its rightful dues for eligible years, except for the disputed year in court.
- Political Fallout:
- Trinamool Congress (TMC) has protested against the Centre’s decision.
- Chief Minister Mamata Banerjee has written to the Centre and launched an alternative rural job scheme, Karmashree.
The committee’s report highlights urgent reforms needed in wage revision, payment efficiency, and equitable fund distribution to maintain MGNREGS’ role in preventing rural distress and ensuring livelihood security.
