MGNREGA: A Critical Assessment of Issues and Challenges

Abstract

Underlining the critical role played by the MGNREGA, this paper exemplifies the issues, challenges and significance of MGNREGA particularly in the context of rural India. Primary Data was collected using structured questionnaire from 153 respondents and Secondary Data has been used mainly from the official website of MGNREGA. The study makes a comparative analysis between the select fifteen states of the Indian Union and provides the framework for policy recommendation for the states with regard to various parameters. F Test indicates that there is a significant effect of social segment on participation rate. Three major issues (a) Governance; (b) Quality of Life; and (c) Wage and Productivity have been found as the most important factors after conducting the factor analysis. A rampant corruption found in many states has been highlighted even among the well performing states manifesting the potent flagship programme to be deceptive and skeptic about its functioning.MGNREGA has been proved to be the largest employment programme particularly for the rural India and has contributed towards the increase in purchasing power by being a major source of income for the bottom of the pyramid people in the Society. It has helped in solving problems of rural distress but a lot needs to be done. The wage rate should be increased and linked with inflation. I was also found that the minimum number of days should be increased from 100 to 180. Women have outperformed men in terms of productivity and their participation should be increased.

Keywords: MGNREGA, Rural employment, Governance, Quality of life, Wage, Productivity, Social segment, participation rate

JEL Classification: G28, H11, H55