Survey backs decision to scrap MGNREGA, cites structural flaws, strong rural economy, Pg13

Key Highlights:

• The Economic Survey defends the decision to scrap MGNREGA, citing structural flaws and a strong rural economy.
• The survey introduces the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 as a replacement.
• NABARD's RECSS (Nov 2025) indicates robust rural consumption, income growth, and improved access to credit.
• MGNREGA person-days generated decreased by over 53%, from 389.09 crore in 2020-21 to 183.77 crore in 2025-26.
• Rural unemployment fell from 3.3% in 2020-21 to 2.5% in 2023-24.
• Women's participation in MGNREGA rose from 48% in 2013-14 to 58.1% in 2024-25.

Detailed Insights:

• The Economic Survey argues that improved rural economic conditions necessitate a re-examination of employment guarantee programs.
• Activists claim that demand for MGNREGA was artificially suppressed due to low budget allocations and technological hurdles.
• The survey acknowledges MGNREGA's contributions to income stabilization and basic infrastructure creation.
• Structural issues cited include mismatch between expenditure and physical progress, and bypassing of digital attendance systems.
• The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 aims to address the shortcomings of MGNREGA.
• The survey references research indicating rural consumption is at a 17-quarter high, driven by growth in agricultural and non-agricultural wages.

Key Concepts Involved:

• MGNREGA: Aims to enhance livelihood security of households in rural areas of the country by providing at least one hundred days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.
• NABARD: An apex development finance institution in India that focuses on promoting sustainable and equitable agriculture and rural development.
• Economic Survey: An annual document released by the Ministry of Finance, Government of India, that reviews the economic development of the country over the past financial year.