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National RuralEmploymentGuarantee Act

(NREGA)

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Introduction

India has a 30-year history of wage employment programmes

(WEPs).

Problems with WEPs:1. low programme coverage

2. more than 30% of beneficiaries not from most needy group

3. bureaucracy dominated planning; little participation of

community in planning4. work of women lower than stipulated 30%

5. only 16-29 days of employment provided to a household

6. assets created are not durable

7. corruption reports of false muster rolls; involvement ofcontractors; less than prescribed wages

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Why another wage employment programme?

Political imperative

1. The NDA governmentsIndiaShining campaign failedto win votes in May 2004 elections.

2. The UPA came to power on a rural/agril developmentvote.

3. National Common Minimum Programme of the UPAGovernment (May 2004) stated:

The UPA government will immediately enact aNational Employment Guarantee Act. This will providea legal guarantee for at least 100 days of employmentto begin with on asset-creating public works

programmes every year at minimum wages for at leastone able-bodied person in every rural, urban poor andlower middle-class household. In the interim, amassive food-for-work programme will be started.

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Economic Imperative

1. Agricultural growth slowed down since mid-1990s

2. Rural wage/incomes stagnating

3. Gini coefficient of income worsening

4. More than 300 million poor in 2004-055. Maoist insurgency in 160 of 619 districts

Jean Dreze, a Belgian economist, is the chief author of the scheme.

NREGA

The Goi launched NREGA on February 2, 2006.

Objective:To provide 100 days of employment for poorer sectionsin rural areas and, in this process, improve land productivity,income and employment.

For 2006-07, 200 poorest districts were covered (first phase)

In 2007-08, 330 districts were covered (2nd phase)

Since April 2008, all districts are covered.

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Salient Features of NREGA

NREGA introduces a rights based framework. So it addresses itself toworking people and their fundamental right to life with dignity.

It is not merely a scheme but an Act providing legal guarantee to work.

It guarantees 100 days employment in a financial year to any ruralhousehold whose adult members are willing to do unskilled manualwork.

It provides unemployment allowances if the job is not provided to therural household.

The Act empowers ordinary people to play an active role in theimplementation of employment guarantee scheme through GramSabhas, social audits, participatory planning and other means.

NREGA calls for formulation of a Rural Employment Guarantee Schemeby each State Government from the date of commencement of theAct.

The cost of the programme will be borne by the central and stategovernments on 90:10 basis.

Minimum wage has been fixed at not less than Rs. 60 per day, whichhas been revised upwards subsequently.

It is expected to transform the geography of poverty.

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Method of Implementation

A household that wants work under this Act should submit names,age, sex and addresses of its adult members to the local GramPanchayat for registration.

Upon registration, a job card will be issued by the Gram Panchayatwith photographs of adult members of the registered household.The job card will be document that gives entitlement foremployment for an applicant.

The eligible applicant would get employment within 15 days ofdemand. If no employment is provided he/she will getunemployment allowance.

The statutory minimum wage applicable to the agricultural workersin the State is to be paid.

Work will have to be provided within 5 km. ofapplicants residence.

One third of beneficiaries will be women. Safe drinking water, shades for children and first aid box would be

provided by the implementing agency at work site.

If worker is injured, the State Government will extend free medicaltreatment.

No contractor will be involved.

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The Gram Sabhas will identify works to be taken up. The Panchaytshave the principal responsibility for planning, implementing andmonitoring.

Social audit and right to information will apply to each aspect of

implementation. Local Vigilance Committee will be set up.

Works listed in the Act

Focus will be on creation durable assets. The activities to bepreferred are

Water conservation and water harvesting

Drought proofing, including afforestation and tree plantation Irrigation canals including micro and minor irrigation works

Provision of irrigation facilities to land owned by the SC/SThouseholds, beneficiaries of land reforms, beneficiaries of IndiraAwas Yojana etc.

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Renovation of traditional water bodies.

Land development

Flood control works, including drainage in water logged areas

Rural connectivity to provide all weather roads Any other work, which may be notified by the Central Government

in consultation with State Governments.

Performance of NREGA so far

Actual composition of work (in first two years):

Water conservation 60% Land development 13%

Drought proofing 6%

Road connectivity 16%

Others 5%

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Volume of employment provided

Increased from 43 days per household in 2006-07 to 49 days per household in

2008-09.

Employment per household under this scheme is much higher than SGRY, which

was only 26 days in 2006-07.

44.46

Performance of NREGA in All India

49

4,53,89,968

4,49,40,870

21601.0

10,09,31,550

2,11,88,894

2,10,16,099

3456.6

3,43,26,563

3,39,09,132

6220.0

(5) Days of employment per

household

(6) % of works completed

3,78,50,390 6,47,40,595

43

47.15

42

46.04

Indicators 2006-07 2007-08 2008-09

(1) Cumulative no. of

households issued job cards(2) No. of households who

demanded employment(3) No. of households

provided employment(4) Person days of

employment (in lakh)

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The shares of SCs, STs and women in total employment days

under NREGA have been high.

Share of 2006-07 2008-09

SCs 25% 29%

STs 36% 25%

SCs + STs 61% 54%

Women 41% 48%

However, there is wide inter-state variation in the

implementation of NREGA (see table below).

Good performers in 2008-09:Raj, Tri. MP, Chatt, UP, AP, Jhar, Maha

Bad performers in 2008-09: Ker, Guj, Bih, WB, Pun, Kar

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2006-07 2008-09 2006-07 2008-09

1) Andhra Pradesh 31 48 16 6

2) Assam 72 40 2 11

3) Bihar 35 26 14 19

4) Chhattisgarh 56 55 6 4

5) Gujarat 44 25 10 20

6) Haryana 48 42 8 10

7) Himachal Pradesh 47 46 9 9

8) Jammu & Kashmir 27 40 19 12

9) Jharkhand 37 48 13 7

10) Karnataka 41 32 12 16

11) Kerala 21 22 20 21

12) Madhya Pradesh 69 57 3 3

13) Maharashtra 41 46 11 8

14) Orissa 57 37 5 14

15) Punjab 49 27 7 17

16) Rajasthan 85 76 1 1

17) Tamil Nadu 27 37 18 13

18) Tripura 67 64 4 2

19) Uttar Pradesh 32 53 15 5

20) Uttarakhand 30 35 17 15

21) West Bengal 14 26 21 18

StateSl.

No.

Interstate Variation in Implementation of NREGA

Source: http://nrega.nic.in/states/nregampr.asp

Per Household days

of employmentRank

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Some Suggestions for Improving Performance

According to CAG report, the NREGA is a superior programme for poor than

earlier WEPs. But procedural irregularities are much in the case of NREGA and

the officers are afraid. This aspect needs to be looked into.

Effective social audit - social audit should be performed by the GPs. NGOs canalso assist in this process.

Awareness should be expanded. Information, communication, education are

urgently needed.

Technical engineering support at the local level is essential for

quality/durability of assets necessity of capacity building in PRIs.

There should be full transparency in wage payment. Also timely payment of

wages.

States have overburdened existing staff. NREGA provides for new staff

appointment. Leakages can be reduced if

Wage payments are directly into PO/Bank accounts in every state

Social audit institutionalized in every state

Grievance redressal rules/mechanism implemented Strong evaluation and monitoring system introduced