MGNREGA overhaul plugs gaps, keeps up with changing times, Pg11

Key Highlights:

• MGNREGA is being overhauled to align with the Viksit Bharat 2047 vision through VB-GRAM.
• The new law aims to guarantee 125 days of employment per rural household, up from the existing 100 days.
• The Union government has spent Rs 9.95 lakh crore on MGNREGA in the last 19 years (FY07-FY25).
• Budget allocation for 2025-26 is Rs 86,000 crore, the highest ever.
• Around 9.6 crore rural assets have been created since inception, with 8.4 per cent created in the last decade (FY15-25).

Detailed Insights:

• The average number of households completing 100 days of work under MGNREGA remained low, necessitating a shift in the scheme.
• Concerns about increased fiscal costs to states due to the change in funding ratio (from 90:10 to 60:40) are not supported by data.
• The average wage per person per day has increased to around Rs 267, showing a real increase of 10% in FY25 over FY08-FY12 due to low inflation.
• The revamped MGNREGA focuses on productive asset creation in areas like water security, rural infrastructure, livelihood infrastructure, and climate resilience.
• The shift to normative funding ensures state-specific allocation based on local parameters, reducing fluctuations in grants.
• The changes encourage Gram Panchayats to actively participate in Viksit Bharat plans, promoting sustainable and equitable prosperity.
• With declining rural poverty, MGNREGA's share as an annual expenditure at the overall poverty line across states is minimal, indicating diversified income sources.

Key Concepts Involved:

• MGNREGA: A flagship rural employment scheme guaranteeing wage employment to rural households.
• Viksit Bharat 2047: India's vision for becoming a developed nation by 2047.
• VB-GRAM: An initiative to align MGNREGA with the Viksit Bharat 2047 vision.
• Gram Panchayat: A local self-government body at the village level in India.