Mahatma Gandhi National Rural Employment Guarantee Act, 2005

{{short description|Indian worker law}} {{Use Indian English|date=October 2013}} {{Use dmy dates|date=September 2019}} {{Infobox legislation | short_title = Mahatma Gandhi National Rural Employment Guarantee Act, 2005 | legislature = Parliament of India | image = | imagesize = 100px | imagealt = National Emblem of India | caption = | long_title = An Act to provide for the enhancement of livelihood security of the households in rural areas of the country by providing at least one hundred days of guaranteed wage employment in every financial year to every household whose adult members volunteer to do unskilled manual work and for matters connected therewith or incidental thereto. | citation = {{cite act | index = 42 | language = en-mc | date = 2005 | url = https://rural.nic.in/sites/default/files/rajaswa_0.pdf }} | territorial_extent = India | enacted_by = Lok Sabha | date_enacted = Same day | date_passed = 23 August 2005<ref name=FAQs>{{cite web |title=Frequently Asked Questions (FAQs) on MGNREGA Operational Guidelines 2013 |date=June 2014 |url=https://rural.nic.in/sites/default/files/rajaswa_0.pdf}}</ref> | enacted_by2 = Rajya Sabha | date_enacted2 = | date_passed2 = 25 August 2005<ref name=act>{{cite web |title=National Rural Employment Guarantee Act, 2005 |url=https://rural.nic.in/sites/default/files/rajaswa_0.pdf |access-date=14 September 2022}}</ref> | date_assented = 5 September 2005<ref name=act/> | date_commenced = 2 February 2006<ref name=FAQs/> | bill = The National Rural Employment Guarantee Bill, 2005 | bill_citation = | bill_date = 22 March 2005 | introduced_by = Raghuvansh Prasad Singh, Minister of Rural Development | 1st_reading = | 2nd_reading = | 3rd_reading = | committee_report = | bill2 = | bill_citation2 = | bill_date2 = | introduced_by2 = | 1st_reading2 = | 2nd_reading2 = | 3rd_reading2 = | committee_report2 = | white_paper = | amended_by = National Rural Employment Guarantee (Amendment) Act, 2009<ref name=amd>{{cite web |title=National Rural Employment Guarantee (Amendment) Act, 2009 |url=http://164.100.47.4/billstexts/lsbilltexts/PassedLokSabha/NREGA%20102-C%20OF%202009.pdf |website=loksabhaph.nic.in |access-date=14 September 2022}}</ref> | repealed_by = Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025<ref>{{cite web | title=The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) VB – G RAM G Bill, 2025 | website=PRS Legislative Research | date=2026-01-02 | url=https://prsindia.org/billtrack/the-viksit-bharat-%E2%80%93-guarantee-for-rozgar-and-ajeevika-mission-gramin-vb-%E2%80%93-g-ram-g-bill-2025 | access-date=2026-01-02}}</ref> | related_legislation = | summary = | keywords = MGNREGA, NREGA | status = repealed }} The '''Mahatma Gandhi National Rural Employment Guarantee Act 2005''' ('''MGNREGA''') was an Indian social welfare measure that aimed to guarantee the 'right to work'. This act was passed on 23 August 2005<ref name="FAQs" /> and was implemented in February 2006 under the UPA government of Prime Minister Manmohan Singh following the tabling of the bill in parliament by the Minister for Rural Development Raghuvansh Prasad Singh. The bill was originally known as the '''National Rural Employment Guarantee Act''' ('''NREGA''').<ref name="amd" /> In 2025, it was repealed by the Parliament of India after the Lok Sabha and Rajya Sabha passed the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act (VB–G RAM G). The new legislation replaced MGNREGA with an updated rural employment and livelihood guarantee framework under the Ministry of Rural Development.<ref>{{Cite news |date=2025-12-19 |title=Parliament clears VB-G RAM G Bill, replacing MGNREGA amid Opposition protests |url=https://economictimes.indiatimes.com/news/economy/policy/parliament-clears-vb-g-ram-g-bill-replacing-mgnrega-amid-opposition-protests/articleshow/126064211.cms?from=mdr |access-date=2025-12-19 |work=The Economic Times |issn=0013-0389}}</ref><ref>{{Cite web |date=2025-12-18 |title=VB-G RAM G bill vs MGNREGA: Key differences, new initiatives & Opposition's concerns explained |url=https://www.hindustantimes.com/india-news/vb-g-ram-g-bill-vs-mgnrega-key-differences-new-initiatives-opposition-concerns-explained-101766066074294.html |access-date=2025-12-19 |website=Hindustan Times |language=en}}</ref><ref>{{Cite web |title=Parliament passes Viksit Bharat -G RAM G Bill, opposition stages walkout |url=https://www.aninews.in/news/national/politics/parliament-passes-viksit-bharat-g-ram-g-bill-opposition-stages-walkout20251219004601 |access-date=2025-12-19 |website=www.aninews.in |language=en}}</ref>

It aimed to enhance livelihood security in rural areas by providing at least 100 days of assured and guaranteed wage employment in a financial year to at least one member of every Indian rural household whose adult members volunteer to do unskilled manual work.{{sfn|Ministry of Rural Development|2005|p=1}}<ref name=":0">{{Cite news |last=Chitravanshi |first=Ruchika |date=8 October 2015 |title=Nationwide review of rural job scheme NREGS ordered by government |work=The Economic Times |url=https://economictimes.indiatimes.com/news/economy/policy/nationwide-review-of-rural-job-scheme-nregs-ordered-by-government/articleshow/49264512.cms |access-date=2022-04-10 |archive-url=https://archive.today/20160406145800/http://economictimes.com/news/economy/policy/nationwide-review-of-rural-job-scheme-nregs-ordered-by-government/articleshow/49264512.cms |archive-date=6 April 2016}}</ref>{{sfn|Comptroller and Auditor General of India|2013b|p=i}} Women are guaranteed one half of the jobs made available under the MGNREGA and efforts are made to ensure that cross the limit of 50%.<ref name=":8">{{Cite book|last1=Chandra|first1=Bipan |url=https://books.google.com/books?id=dE9qEg-NgHMC|title=India Since Independence|last2=Mukherjee|first2=Aditya|last3=Mukherjee|first3=Mridula|date=2008|publisher=Penguin Books India|isbn=978-0-14-310409-4|pages=374}}</ref> Another aim of MGNREGA is to create durable assets (such as roads, canals, ponds and wells). Employment is to be provided within 5 km of an applicant's residence, and minimum legal wage under the law is to be paid. If work is not provided within 15 days of applying, applicants are entitled to an unemployment allowance. That is, if the government fails to provide employment, it has to provide certain unemployment allowances to those people. Thus, employment under MGNREGA is a legal entitlement. Apart from providing economic security and creating rural assets, other things said to promote NREGA are that it can help in protecting the environment, empowering rural women, reducing rural-urban migration and fostering social equity, among others."{{sfn|Ministry of Rural Development|2005|pp=1–2}}

The act was first proposed in 1991 by then Prime Minister P.V. Narasimha Rao.<ref name="lion">{{cite book|last1=Seetapati |first1=Vinay|title=Half - Lion: How P.V Narasimha Rao Transformed India|date=1 February 2015|edition=1st |publisher=Penguin Books |location=New Delhi|isbn=978-0670088225}}</ref> It was finally accepted in the parliament and commenced implementation in 625 districts of India. Based on this pilot experience, NREGA was scoped up to cover all the districts of India from 1 April 2008.{{sfn|Ministry of Rural Development|2005|p=10}} The statute was praised by the government as "the largest and most ambitious social security and public works program in the world".{{sfn|Ministry of Rural Development|2012|p=ix}} In 2009 the World Bank had chided the act along with others for hurting development through policy restrictions on internal movement.<ref>{{Cite news |date=15 March 2009 |title=World Bank sees NREGA as a barrier to economic development |work=The Economic Times |agency=PTI |url=https://economictimes.indiatimes.com/news/economy/policy/world-bank-sees-nrega-as-a-barrier-to-economic-development/articleshow/4266622.cms |access-date=2022-04-18}}</ref> However in its World Development Report 2014, the World Bank called it a "stellar example of rural development".<ref>{{cite web |date=10 October 2013 |title=World Bank calls NREGA a stellar example of rural development |url=http://articles.economictimes.indiatimes.com/2013-10-10/news/42902947_1_world-bank-world-development-report-safety-net |url-status=dead |archive-url=https://web.archive.org/web/20131013043250/http://articles.economictimes.indiatimes.com/2013-10-10/news/42902947_1_world-bank-world-development-report-safety-net |archive-date=2013-10-13 |work=The Economic Times}}</ref> MGNREGA is to be implemented mainly by gram panchayats (GPs). The law states it provides many safeguards to promote its effective management and implementation. The act explicitly mentions the principles and agencies for implementation, list of allowed works, financing pattern, monitoring and evaluation, and detailed measures to ensure transparency and accountability.<ref>{{Cite report |url=https://ideas.repec.org/p/zbw/wzbisp/spi2015201.html |title=An uneven path to accountability: A comparative study of MGNREGA in two states of India |last=Dutta |first=Sujoy |date=2015 |publisher=Research Papers in Economics}}</ref>

==History==

Since 1960, 30 years were expended in struggling to find suitable employment schemes in India's vast rural hinterland. The experiences of these decades provided important lessons to the government. These included the 'Rural Manpower Programme' which exposed the tribulations of financial management, the 'Crash Scheme for Rural Employment' on planning for outcomes, a 'Pilot Intensive Rural Employment Programme' of labour-intensive works, the 'Drought Prone Area Programme' of integrated rural development, 'Marginal Farmers and Agricultural Labourers Scheme' of rural economic development, the ‘Food for Work Programme’ (FWP) of holistic development and better coordination with the states, the ‘National Rural Employment Programme’ (NREP) of community development, and the ‘Rural Landless Employment Guarantee Programme’ (RLEGP) of focus on landless households.{{sfn|Planning Commission|2001|pp=12–20}} The Planning Commission later approved the scheme and it was adopted on national scale.<ref>{{Cite news |last=ANI |date=2013-07-01 |title=President Mukherje pays tribute to former Maharashtra CM Vasantrao Naik |work=Business Standard India |url=https://www.business-standard.com/article/news-ani/president-mukherje-pays-tribute-to-former-maharashtra-cm-vasantrao-naik-113070100989_1.html |access-date=2022-04-18}}</ref> thumb|MGNREGA workers removing mud from a dry pond

In April 1989, to converge employment generation, infrastructure development and food security in rural areas, the government integrated NREP and RLEGP{{efn|The Rural Landless Employment Guarantee Programme (RLEGP) of August 1983 to focus specially on landless households.{{sfn|Planning Commission|2001|p=15}}}} into a new scheme Jawahar Rozgar Yojana (JRY). The most significant change was the decentralization of implementation by involving the local people through local village governments or Panchayati Raj Institutions (PRIs) and hence a decreasing role of bureaucracy.{{sfn|Planning Commission|2001|pp=16, 24–27}} In October 1993, the Employment Assurance Scheme (EAS) was initiated to provide employment to agricultural hands during the lean agricultural season. The role of PRIs was reinforced with the local self-government at the district level called the 'Zilla Parishad' as the main implementing authority. Later, the EAS was merged with Sampoorna Gramin Rojgar Yojana (SGRY) in 2001.{{sfn|Planning Commission|2001|pp=17–19}}

On 1 April 1999, the JRY was revamped and renamed to Jawahar Gram Samridhi Yojana (JGSY) with a similar objective. The role of PRIs was further reinforced with the local self-government at the village level called the ‘Village Panchayats’ as the sole implementing authority. In 2001, it was merged with SGRY.{{sfn|Planning Commission|2001|pp=21–23}}<ref>{{Cite news |last=Ranganna |first=T.S. |date=16 November 2001 |title=PR Dept. loses Central assistance |work=The Hindu |url=http://www.hindu.com/2001/11/17/stories/0417210g.htm |url-status=dead |archive-url=https://web.archive.org/web/20131105045341/http://www.hindu.com/2001/11/17/stories/0417210g.htm |archive-date=5 November 2013}}</ref> On 25 September 2001 to converge employment generation, infrastructure development and food security in rural areas, the government integrated EAS and JGSY into a new scheme SGRY. The role of PRIs was retained with the 'Village Panchayats' as the sole implementing authority.{{sfn|Ministry of Rural Development|2002|pp=1–3}} Due to implementation issues, it was merged with NREGA in 2006.<ref>{{Cite news |last=Dorairaj |first=S. |date=15 August 2006 |title=CAG report reveals irregularities in Sampoorna Rozgar Yojana |work=The Hindu |url=http://www.hindu.com/2006/08/15/stories/2006081506090500.htm |archive-url=https://web.archive.org/web/20060827103337/http://www.hindu.com/2006/08/15/stories/2006081506090500.htm |archive-date=27 August 2006}}</ref> In January 2001, the government introduced a FWP similar to the one that was initiated in 1977. Once NREGA was enacted, the two were merged in 2006.{{sfn|Planning Commission|2001|p=20}} The total government allocation to these precursors of NREGA had been about three-quarters of {{INRConvert|1|t}}.{{sfn|Centre for Science and Environment|2007|p=7}} Employment generation programmes created after 2005 include the Prime Minister Employment Generation Programme (PMEGP).{{sfnp|Chapter 1, Employment Guarantee Programme and Dynamics of Rural Transformation in India|2018|p=5}}

The colonial era, when India was governed by the British, is when the problems of poverty and a lack of employment possibilities in rural areas first surfaced. The lopsided economic development pattern was caused by the colonial government's emphasis on growing the urban economy at the expense of the rural economy, which remained even after India attained independence. Additionally, the colonial authority established land revenue procedures that led to a concentration of land ownership in the hands of a select few, which in turn marginalized the rural poor. Additionally, the British promoted the growth of cash crops above food crops, which reduced agricultural productivity and brought about famine in some regions of the nation. Despite independence, the legacy of colonialism remains.

Particularly, colonialism had a lasting effect on the economic and social advancement of India, with rural areas and people being the most negatively impacted. The colonial era is still evident in the underfunding of rural infrastructure, the lack of systemic social assistance programs, and the scarcity of job prospects. To address these difficulties, a determined effort must be made to reverse the historical neglect of rural areas and give them development priority.

In response to the cries for help, the Indian government put together a nationwide welfare scheme aimed at targeting this very issue: The Mahatma Gandhi National Rural Employment Guarantee Act, or MGNREGA. The Government of India introduced the MGNREGA social welfare program in 2005 to address the problem of unemployment and poverty in rural areas. Recognizing the high rates of unemployment and poverty in rural India, especially among the underprivileged groups of the population, led to the need for such a program.

The MGNREGA was created with the idea of giving rural households a safety net in the form of guaranteed work possibilities. Every rural household in the nation was to receive 100 days of guaranteed employment each year as part of the program, guaranteeing that each household had access to a minimum amount of income. The program was intended to be labor-intensive, with the main sources of employment being initiatives like road building, water conservation, and afforestation. The Ministry of Rural Development, a section of the Government of India’s economic bureau, was in charge of overseeing the implementation and rollout of the plan. Gram Panchayats - governing heads in rural villages, were the envoy for implementing the scheme at the local level.

== Provisions ==<!--According to the Eleventh Five Year Plan (2007–12), the number of Indians living on less than $1 a day, called Below Poverty Line (BPL), was 300 million that barely declined over the last three decades ranging from 1973 to 2004, although their proportion in the total population decreased from 36 per cent (1993–94) to 28 percent (2004–05),{{sfn|Planning Commission|2007|pp=5–9}} and the rural working class dependent on agriculture was unemployed for nearly 3 months per year.{{sfn|Planning Commission|2007|pp=17–29}}

The UPA Government had planned to increase the number of working days from 100 to 150 before the 2014 Lok Sabha Elections in the country but failed.<ref name="mgnrega">{{cite web|url=http://www.mgnrega.in/2014/03/proposal-for-150-days-of-work-under.html |title=Proposal for 150 days of work under MGNREGA |publisher=mgnrega.in |access-date=10 March 2014 |url-status=dead |archive-url=https://web.archive.org/web/20140521031632/http://www.mgnrega.in/2014/03/proposal-for-150-days-of-work-under.html |archive-date=21 May 2014}}</ref>

The NDA government has decided to provide 150 days for rain hit areas.{{sfn|Mehra|2015}}-->

The registration process involves an application to the Gram Panchayat and issuance of job cards. The wage employment must be provided within 15 days of the date of application. The work entitlement of 100 days{{Efn|This number has been increased on paper. In practice the number varies to less than half the stipulated days.<ref>{{Cite news |date=2021-11-21 |title=Guaranteed man-days under MGNREGA increased to 150 |language=en-IN |work=The Hindu |url=https://www.thehindu.com/news/national/karnataka/guaranteed-man-days-under-mgnrega-increased-to-150/article37604245.ece |access-date=2022-04-16 |issn=0971-751X}}</ref><ref>{{Cite web |date=3 April 2019 |title=Forget 150 days employment under MGNREGA! Numbers on ground not even half of existing 100 workdays |url=https://www.businesstoday.in/latest/economy-politics/story/congress-manifesto-150-workdays-forget-150-days-employment-under-mgnrega-numbers-on-ground-not-even-half-of-existing-100-workdays-184993-2019-04-03 |access-date=2022-04-16 |website=Business Today |language=en}}</ref><ref>{{Cite web |date=19 January 2014 |publisher=Ministry of Rural Development, Government of India |title=Centre issues directive for 150 days work under MGNREGA for STs in Forest Areas. |url=https://pib.gov.in/newsite/printrelease.aspx?relid=102603 |access-date=2022-04-16 |website=Press Information Bureau}}</ref><ref>{{Cite web |last=Purkayastha |first=Samir K |date=2022-04-07 |title=No state provided 100 days of work under MGNREGA in FY22: Govt data |url=https://thefederal.com/news/no-state-provided-100-days-of-work-under-mgnrega-in-fy22-govt-data/ |access-date=2022-04-16 |website=The Federal |language=en-US}}</ref>}} per household per year may be shared between different adult members of the same household.{{sfn|Ministry of Rural Development|2005|pp=14–20}} The law lists permissible works: water conservation and water harvesting; drought proofing including afforestation; irrigation works; restoration of traditional water bodies; land development; flood control; rural connectivity; and works notified by the government. The Act sets a minimum limit to the wage-material ratio as 60:40. The provision of accredited engineers, worksite facilities and a weekly report on worksites is also mandated by the Act.{{sfn|Ministry of Rural Development|2005|pp=21–25}} The Act sets a minimum limit to the wages, to be paid with gender equality, either on a time-rate basis or on a piece-rate basis. The states are required to evolve a set of norms for the measurement of works and schedule of rates. Unemployment allowance must be paid if the work is not provided within the statutory limit of 15 days.{{sfn|Ministry of Rural Development|2005|pp=26–29}} The law stipulates Gram Panchayats to have a single bank account for NREGA works which shall be subjected to public scrutiny. To promote transparency and accountability, the act mandates 'monthly squaring of accounts'.{{sfn|Ministry of Rural Development|2005|pp=30–34}} To ensure public accountability through public vigilance, the NREGA designates ‘social audits’ as key to its implementation.{{sfn|Ministry of Rural Development|2005|pp=46–61}}

The most detailed part of the Act (chapter 10 and 11) deals with transparency and accountability that lays out role of the state, the public vigilance and, above all, the social audits.{{sfn|Ministry of Rural Development|2005|pp=41–62}} For evaluation of outcomes, the law also requires management of data and maintenance of records, like registers related to employment, job cards, assets, muster rolls and complaints, by the implementing agencies at the village, block and state level.{{sfn|Ministry of Rural Development|2005|pp=38–40}} The legislation specifies the role of the state in ensuring transparency and accountability through upholding the right to information and disclosing information proactively, preparation of annual reports by the Central Employment Guarantee Council for the Parliament and State Employment Guarantee Councils for state legislatures, undertaking mandatory financial audits by each district along with physical audit, taking action on audit reports, developing a Citizen's Charter, establishing vigilance and monitoring committees, and developing a grievance redressal system.{{sfn|Ministry of Rural Development|2005|pp=41–45}}

The Act recommends establishment of 'Technical Resource Support Groups' at district, state and central level and active use of information technology, like creation of a 'Monitoring and Information System (MIS)' and a NREGA website, to assure quality in implementation of NREGA through technical support.{{sfn|Ministry of Rural Development|2005|pp=62–64}} The law allows convergence of NREGA with other programmes. As NREGA intends to create ‘additional’ employment, the convergence should not affect employment provided by other programmes.{{sfn|Ministry of Rural Development|2005|pp=65–66}}

== The law and the Constitution of India == The Act aimed to follow the Directive Principles of State Policy enunciated in Part IV of the Constitution of India. The law by providing a 'right to work' is consistent with Article 41 that directs the State to secure to all citizens the right to work.{{sfnp|Constitution of India|2007|p=22}}{{sfnp|Doungel, Genesis of the MGNREGS and its constitutional basis|2019|p=3-4}} The statute also seeks to protect the environment through rural works{{sfn|Ministry of Rural Development|2005|p=22}} which is consistent with Article 48A that directs the State to protect the environment.{{sfnp|Constitution of India|2007|p=24}}

In accordance with the Article 21 of the Constitution of India that guarantees the right to life with dignity to every citizen of India, this act imparts dignity to the rural people through an assurance of livelihood security.{{sfnp|Constitution of India|2007|p=10}}{{sfnp|Doungel, Genesis of the MGNREGS and its constitutional basis|2019|p=5}} The Fundamental Right enshrined in Article 16 of the Constitution of India guarantees equality of opportunity in matters of public employment and prevents the State from discriminating against anyone in matters of employment on the grounds only of religion, race, caste, sex, descent, place of birth, place of residence or any of them.{{sfnp|Constitution of India|2007|p=7}} NREGA also follows Article 46 that requires the State to promote the interests of and work for the economic uplift of the scheduled castes and scheduled tribes and protect them from discrimination and exploitation.{{sfnp|Constitution of India|2007|p=23}}

Article 40 mandates the State to organise village panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government.{{sfnp|Constitution of India|2007|p=22}} Conferring the primary responsibility of implementation on Gram Panchayats, the Act adheres to this constitutional principle. Also the process of decentralization initiated by 73rd Amendment to the Constitution of India that granted a constitutional status to the Panchayats{{sfnp|Constitution of India|2007|p=129}} is further reinforced by the Mahatma Gandhi NREGA that endowed these rural self-government institutions with authority to implement the law.{{sfn|Ministry of Rural Development|2005|p=3}} Additionally, the Act also empowers women by mandating at least one-third participation of women in the implementation of works under NREGA.

==The law in action==

===Independent academic research=== Academic research has focused on many dimensions of the NREGA: economic security, self-targeting,<ref>{{Cite web |last= |date=2014-11-04 |title=The Whys and Whats of India's Rural Jobs Scheme |url=https://www.indiaspend.com/the-whys-and-whats-of-indias-rural-jobs-scheme-99284/ |access-date=2022-04-19 |website=IndiaSpend}}</ref> women's empowerment, asset creation, corruption, how the scheme impacts agricultural wages.

An early overall assessment in 2008 in six north Indian states suggested that NREGA was "making a difference to the lives of the rural poor, slowly but surely."<ref name=":2">{{Cite web |last1=Dreze |first1=Jean |author-link=Jean Drèze |last2=Khera |first2=Reetika |date=January 16, 2009 |title=The battle for employment guarantee |url=https://frontline.thehindu.com/cover-story/article30183321.ece |access-date=2022-04-16 |website=Frontline |publisher=The Hindu}}</ref> The composition of NREGA workers included the poorest and socially and economically deprived. A majority of them belong to Scheduled Castes and Scheduled Tribes, are illiterate and do not have electricity at home.<ref name=":2" /> Self-targeting evidence suggests that there is a lot of unmet demand for work.<ref>{{cite web |last1=Barrett |first1=Christopher B |last2=Liu |first2=Yanyan |name-list-style=amp |date=9 March 2013 |title=Heterogeneous Pro-Poor Targeting in the National Rural Employment Guarantee Scheme |url=https://www.epw.in/journal/2013/10/special-articles/heterogeneous-pro-poor-targeting-national-rural-employment |url-access=subscription |website=Economic and Political Weekly}}</ref><ref>{{Cite journal |last1=Walle |first1=Dominique van de |last2=Ravallion |first2=Martin |last3=Dutta |first3=Puja |last4=Murgai |first4=Rinku |date=2012 |title=Does India's Employment Guarantee Scheme Guarantee Employment? |url=https://www.jstor.org/stable/23214599 |journal=Economic and Political Weekly |volume=47 |issue=16 |pages=55–64 |jstor=23214599 |issn=0012-9976}}</ref>

Agricultural wages have increased, especially for women, since the inception of the scheme.<ref>{{cite journal |last1=Imbert |first1=Clément |last2=Papp |first2=John |name-list-style=amp |date=April 2015 |title=Labor Market Effects of Social Programs: Evidence from India's Employment Guarantee |url=https://www.jstor.org/stable/24739040 |journal=American Economic Journal: Applied Economics |publisher=American Economic Association |volume=7 |issue=2 |pages=233–263 |doi=10.1257/app.20130401 |jstor=24739040 |url-access=}}</ref><ref>{{cite report |url=https://ftp.iza.org/dp6858.pdf |title=Labor market impacts of a large-scale public works program: evidence from the Indian Employment Guarantee Scheme |author=Zimmermann, L. |date=2012 |publisher=IZA Institute of Labor Economics}}</ref><ref>{{cite report |url=https://conference.iza.org/conference_files/worldb2012/bhattacharyya_s8177.pdf |title=Can Rural Public Works Affect Agricultural Wages? Evidence from India |last1=Berg |first1=E. |last2=Bhattacharyya |first2=S. |date=2012 |last3=Durgam |first3=R. |last4=Ramachandra |first4=M. |name-list-style=amp |series=CSAE Working Paper}}</ref> This indicates that overall wage levels have increased due to the act, however, further research highlights that the key benefit of the scheme lies in the reduction of wage volatility.<ref>{{cite report |url=https://sticerd.lse.ac.uk/dps/eopp/eopp53.pdf |title=Can Workfare Programs Moderate Violence? Evidence from India. mimeo, 1–42. |author=Fetzer, T. |date=2014 |publisher=London School of Economics and STICERD}}</ref> This highlights that NREGA may be an effective insurance scheme. A particular focus has been to understand whether the scheme has reduced migration into urban centres for casual work.<ref>{{cite report |url=https://warwick.ac.uk/fac/soc/economics/research/workingpapers/2016/twerp_1116_imbert.pdf |title=Short-term Migration Rural Workfare Programs and Urban Labor Markets - Evidence from India |last1=Imbert |first1=Clément |last2=Papp |first2=John |date=2016 |publisher=Department of Economics, University of Warwick |volume=1116 |name-list-style=amp |journal=The Warwick Economics Research Paper Series}}</ref>

Studies have suggested that women's participation has remained high, though there are inter-state variations.<ref>{{Cite journal |last1=Narayanan |first1=Sudha |last2=Das |first2=Upasak |date=2014 |title=Women Participation and Rationing in the Employment Guarantee Scheme |url=https://www.jstor.org/stable/24480958 |journal=Economic and Political Weekly |volume=49 |issue=46 |pages=46–53 |jstor=24480958 |issn=0012-9976}}</ref><ref>{{Cite journal |last1=Khera |first1=Reetika |last2=Nayak |first2=Nandini |date=2009 |title=Women Workers and Perceptions of the National Rural Employment Guarantee Act |url=https://www.jstor.org/stable/25663707 |journal=Economic and Political Weekly |volume=44 |issue=43 |pages=49–57 |jstor=25663707 |issn=0012-9976}}</ref> One study in border villages of Rajasthan, Madhya Pradesh and Gujarat studied the effect on short term migration and child welfare and found that among children who do not migrate, grade completed is higher.<ref>{{Cite journal |last=Coffey |first=Diane |date=2013 |title=Children's welfare and short term migration from rural India |journal=The Journal of Development Studies |volume=49 |issue=8 |pages=1101–1117 |doi=10.1080/00220388.2013.794934 |issn=0022-0388 |pmc=3773470 |pmid=24049212}}</ref> The study found that demand for NREGA work is higher, even though migrant wages are higher.<ref>{{cite journal |last1=Imbert |first1=Clément |last2=Papp |first2=John |name-list-style=amp |date=2018 |title=Costs and Benefits of Seasonal Migration: Evidence from India |url=https://warwick.ac.uk/fac/soc/economics/research/workingpapers/2018/twerp_1161_imbert.pdf |journal=The Warwick Economics Research Paper Series |publisher=Department of Economics, University of Warwick |volume=1161}}</ref>

A few studies focusing on the potential for asset creation under NREGA suggest that (a) the potential is substantial; (b) in some places, it is being realized, and (c) lack of staff, especially technical staff, rather than lack of material are to blame for poor realization of this potential.<ref>{{cite web |author=Narayanan |first=Sudha |date=20 Oct 2014 |title=Saving people's livelihoods |url=http://www.livemint.com/Opinion/hz2CLtVBL7q45SrIfg1BfL/Saving-peoples-livelihoods.html |website=Livemint}}</ref><ref>{{Cite journal |last1=Aggarwal |first1=Ankita |last2=Gupta |first2=Aashish |last3=Kumar |first3=Ankit |date=2012 |title=Evaluation of NREGA Wells in Jharkhand |url=https://www.jstor.org/stable/41720080 |journal=Economic and Political Weekly |volume=47 |issue=35 |pages=24–27 |jstor=41720080 |issn=0012-9976}}</ref> Others have pointed out that water harvesting and soil conservation works promoted through NREGA "could have high positive results on environment security and biodiversity and environment conservation".<ref>{{Cite journal |last1=Sebastian |first1=Mathew K. |last2=Azeez |first2=P A |date=2014 |title=MGNREGA and Biodiversity Conservation |url=https://www.jstor.org/stable/24479220 |journal=Economic and Political Weekly |volume=49 |issue=10 |pages=16–19 |jstor=24479220 |issn=0012-9976}}</ref> A study conducted by researchers at the Indian Institute of Science and other collaborators found that activities related to natural resource management under the MGNREGA can capture 249 metric tons of carbon dioxide equivalent by 2030.<ref>{{Cite web |last=Moudgil |first=Manu |date=2021-06-18 |title=Rural job scheme guarantees carbon sequestration |url=https://india.mongabay.com/2021/06/rural-job-scheme-guarantees-carbon-sequestration/ |access-date=2021-08-06 |website=Mongabay-India}}</ref> India has placed emphasis on MGNREGA as a contributor to carbon sequestration in its Third Biennial Update Report submitted to the United Nations Framework Convention on Climate Change in 2021.<ref>{{Cite web |date=2021 |title=India - Third Biennial Update Report to The United Nations Framework Convention on Climate Change |url=https://unfccc.int/sites/default/files/resource/INDIA_%20BUR-3_20.02.2021_High.pdf |access-date=6 August 2021 |publisher=Ministry of Environment, Forest and Climate Change, Government of India}}</ref>

Improvements in reducing corruption are attributable to the move to pay NREGA wages through bank and post office accounts.<ref>{{Cite journal |last1=Adhikari |first1=Anindita |last2=Bhatia |first2=Kartika |date=2 January 2020 |title=NREGA Wage Payments: Can We Bank on the Banks? |url=https://www.epw.in/journal/2010/01/insight/nrega-wage-payments-can-we-bank-banks.html |journal=Economic and Political Weekly |language=en |volume=45 |issue=1 |pages=7–8 |url-access=subscription}}</ref> Some of the success in battling corruption can also be attributed to the strong provisions for community monitoring.<ref>{{Cite journal |last1=Aiyar |first1=Yamini |last2=Samji |first2=Salimah |date=2006 |title=Improving the Effectiveness of National Rural Employment Guarantee Act |url=https://www.jstor.org/stable/4417731 |journal=Economic and Political Weekly |volume=41 |issue=4 |pages=320–326 |jstor=4417731 |issn=0012-9976}}</ref> Others find that "the overall social audit effects on reducing easy-to-detect malpractices was mostly absent".<ref>{{Cite web |last1=Afridi |first1=Farzana |last2=Iversen |first2=Vegard |date=12 March 2014 |title=Has community monitoring helped reduce corruption in public programme delivery? |url=http://ideasforindia.in/Article.aspx?article_id=262 |url-status=dead |archive-url=https://web.archive.org/web/20170906034851/http://ideasforindia.in/Article.aspx?article_id=262 |archive-date=6 September 2017 |website=Ideas for India}}</ref>

A few papers also study the link between electoral gains and implementation of NREGA. One studies the effect in Andhra Pradesh - the authors find that "while politics may influence programme expenditure in some places and to a small extent, this is not universally true and does not undermine the effective targeting and good work of the scheme at large."<ref>{{Cite web |last1=Barrett |first1=Christopher B. |last2=Liu |first2=Yanyan |last3=Narayanan |first3=Sudha |last4=Sheahan |first4=Megan |date=19 November 2014 |title=Politics and MNREGA: A limited Link in Andhra Pradesh |url=http://www.ideasforindia.in/topics/social-identity/politics-and-mnrega-a-limited-link-in-andhra-pradesh.html |access-date=2022-04-16 |website=Ideas For India}}</ref> The two other studies focus on these links in Rajasthan<ref>{{cite web |last1=Gupta |first1=Bhanu |last2=Mukhopadhyay |first2=Abhiroop |date=20 November 2014 |title=Local funds and political competition: Evidence from the National Rural Employment Guarantee Scheme in India |url=http://www.effective-states.org/working-paper-42/ |website=Effective States and Inclusive Development (ESID)}}</ref> and West Bengal.<ref>Das (2014) http://www.themenplattform-ez.de/wp-content/uploads/2013/04/SSRN-id2262533.pdf</ref> Several local case studies are also being conducted to identify the regional impacts of NREGA.<ref>{{cite web |last1=Saha |first1=Anindita R |last2=Bhatt |first2=Pankaj |date=2016 |title=MGNREGA as an Environmental Policy: A Case Study of Pithoragarh, Uttarakhand |url=http://jiid.in/2016/08/mgnrega-environmental-policy-case-study-pithoragarh-uttarakhand/ |access-date=2016-09-18 |publisher=Journal of Innovation for Inclusive Development}}</ref>

===Assessment by the constitutional auditor===

The second performance audit by the Comptroller and Auditor General (CAG) of India covered 3,848 gram panchayats (GPs) in 28 states and 4 union territories (UTs) from April 2007 to March 2012.{{sfn|Comptroller and Auditor General of India|2013a}} This comprehensive survey by the CAG documents lapses in implementation of the act.<ref>{{cite web |title=Executive Summary |work=Performance Audit of Mahatma Gandhi National Rural Employment Guarantee Scheme |url=http://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2013/Civil/Report_6/exe-sum.pdf |access-date=2014-11-17 |url-status=dead |archive-url=https://web.archive.org/web/20131030090338/http://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2013/Civil/Report_6/exe-sum.pdf |archive-date=30 October 2013}}</ref>{{sfn|Devonshire-Ellis|2012}}

The main problems identified in the audit included: a fall in the level of employment, low rates of completion of works (only 30.3 per cent of planned works had been completed), poor planning (in one-third of Gram Panchayats, the planning process mandated by the act had not been followed), lack of public awareness partly due to poor information,{{sfn|Comptroller and Auditor General of India|2013b|p=vii}} education and communication IEC) by the state governments, shortage of staff (e.g., Gram Rozgar Sewaks had not been appointed in some states) and so on.{{sfn|Comptroller and Auditor General of India|2013b|pp=vii–ix}} Not withstanding the statutory requirement of notification, yet five states had not even notified the eight-years-old scheme.

The comprehensive assessment of the performance of the law by the constitutional auditor revealed serious lapses arising mainly due to lack of public awareness, mismanagement and institutional incapacity. The CAG also suggested some corrective measures.

Even though the mass social audits have a statutory mandate of Section 17 (As outlined in Chapter 11 of the NREGA Operational Guidelines), only seven states have the institutional capacity to facilitate the social audits as per prescribed norms.{{sfn|Ministry of Rural Development|2005|p=46}} Although the Central Council is mandated to establish a central evaluation and monitoring system as per the NREGA Operational Guidelines, even after six years it is yet to fulfill the NREGA directive. Further, the CAG audit reports discrepancies in the maintenance of prescribed basic records in up to half of the gram panchayats (GPs) which inhibits the critical evaluation of the NREGA outcomes. The unreliability of Management Information System (MIS), due to significant disparity between the data in the MIS and the actual official documents, is also reported.{{sfn|Comptroller and Auditor General of India|2013b|p=ix}}

To improve management of outcomes, it recommended proper maintenance of records at the gram panchayat (GP) level. Further the Central Council is recommended to establish a central evaluation and monitoring system for "a national level, comprehensive and independent evaluation of the scheme". The CAG also recommends a timely payment of unemployment allowance to the rural poor and a wage material ratio of 60:40 in the NREGA works. Moreover, for effective financial management, the CAG recommends proper maintenance of accounts, in a uniform format, on a monthly basis and also enforcing the statutory guidelines to ensure transparency in the disposal of funds. For capacity building, the CAG recommends an increase in staff hiring to fill the large number of vacancies.{{sfn|Comptroller and Auditor General of India|2013b|pp=ix–x}}

For the first time, the CAG also included a survey of more than 38,000 NREGA beneficiaries.<ref>Chapter 13 of the CAG report available online {{cite web |title=Chapter 13: Findings of the Beneficiary Survey |work=Performance Audit of Mahatma Gandhi National Rural Employment Guarantee Scheme |url=http://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2013/Civil/Report_6/chap_13.pdf |access-date=2014-11-17 |url-status=dead |archive-date=30 October 2013 |archive-url=https://web.archive.org/web/20131030095112/http://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2013/Civil/Report_6/chap_13.pdf}}</ref> An earlier evaluation of the NREGA by the CAG was criticized for its methodology.<ref>{{Cite journal |last1=Vanaik |first1=Anish |last2=Siddhartha |date=2015-06-05 |title=CAG Report on NREGA: Fact and Fiction |url=https://www.epw.in/journal/2008/25/insight/cag-report-nrega-fact-and-fiction.html |journal=Economic and Political Weekly |language=en |volume=43 |issue=25 |pages=7–8}}</ref>

===Evaluation by the government===

The Prime Minister of India Manmohan Singh released an anthology of research studies on the MGNREGA called "MGNREGA Sameeksha" in New Delhi on 14 July 2012, about a year before the CAG report.<ref>{{Cite news |agency=PTI |date=2012-07-14 |title=Manmohan directs Planning Commission to address gaps in NREGA |language=en-IN |work=The Hindu |url=https://www.thehindu.com/news/national//article60479130.ece |access-date=2022-04-16 |issn=0971-751X}}</ref><ref name="Much more than a survival scheme">{{Cite news |last1=Roy |first1=Aruna |last2=Dey |first2=Nikhil |date=2012-08-30 |title=Much more than a survival scheme |language=en-IN |work=The Hindu |url=https://www.thehindu.com/todays-paper/tp-opinion/much-more-than-a-survival-scheme/article3842374.ece |access-date=2022-04-17 |issn=0971-751X}}</ref> Aruna Roy and Nikhil Dey said that "the MGNREGA Sameeksha is a significant innovation to evaluate policy and delivery".<ref name="Much more than a survival scheme"/> The anthology draws on independent assessments of MGNREGA conducted by Indian Institutes of Management (IIMs), Indian Institutes of Technology (IITs) and others in collaboration with United Nations Development Programme (UNDP) published from 2008 to 2012.{{sfn|Ministry of Rural Development|2012|p=79}}

The Prime Minister said, "The Mahatma Gandhi NREGA story in numbers is a story worth telling... (but) statistics do not tell the whole truth":<ref>{{Cite news |date=14 July 2012 |title=PM directs Planning Commission to address gaps in NREGA |work=The Times of India |agency=PTI |url=https://timesofindia.indiatimes.com/india/PM-directs-Planning-Commission-to-address-gaps-in-NREGA/articleshow/14902487.cms |url-status=live |archive-url=https://web.archive.org/web/20131212075904/http://articles.timesofindia.indiatimes.com/2012-07-14/india/32674193_1_nrega-workforce-singh-ahluwalia-planning-commission |archive-date=12 December 2013}}</ref> Minister of Rural Development Jairam Ramesh says in the 'MGNREGA Sameeksha':{{sfn|Ministry of Rural Development|2012|p=ix}}

{{blockquote|MGNREGA’s other quantitative achievements: # Since its inception in 2006, around {{INR}}1,10,000 crore (about USD$25 billion) has gone directly as wage payment to rural households and 1200 crore (12 billion) person-days of employment has been generated. On an average, 5 crore (50 million) households have been provided employment every year since 2008. # Eighty per cent of households are being paid directly through bank/post office accounts, and 10 crore (100 million) new bank/post office accounts have been opened. # The average wage per person-day has gone up by 81 per cent since the Scheme’s inception, with state-level variations. The notified wage today varies from a minimum of {{INR}}122 (USD$1.76) in Bihar, Jharkhand to {{INR}}191 (USD$2.76) in Haryana. # Scheduled Castes (SCs) and Scheduled Tribes (STs) have accounted for 51 per cent of the total person-days generated and women for 47 per cent, well above the mandatory 33 per cent as required by the Act. # 146 lakh (14.6 million) works have been taken up since the beginning of the programme, of which about 60 per cent have been completed. # 12 crore (120 million) Job Cards (JCs) have been given and these along with the 9 crore (90 million) muster rolls have been uploaded on the Management Information System (MIS), available for public scrutiny. Since 2010–11, all details with regard to the expenditure of the MGNREGA are available on the MIS in the public domain.{{sfn|Ministry of Rural Development|2012|pp=ix-xi}}}}Proponents of the scheme enumerate number of benefits. For example, Rejaul Karim Laskar, an ideologue of the Congress party- the largest constituent of the UPA Government which introduced the scheme, claimed that the scheme has multifarious benefits including "reduction in poverty, reduction in migration, women empowerment, improvement of productivity of agricultural land and regeneration of water resources".<ref>{{cite news |last1=Laskar |first1=R. K. |date=March 14, 2013 |title=MGNREGA: Safety net for the rural poor |agency=The Financial World |url=http://old.thefinancialworld.com/epaper/fwepaper_new.aspx |url-status=dead |access-date=30 January 2018 |archive-url=https://web.archive.org/web/20180210142619/http://old.thefinancialworld.com/epaper/fwepaper_new.aspx |archive-date=10 February 2018}}</ref>

===Social audit=== {{See also|Social audit}} Civil society organisations (CSOs), nongovernmental organisations (NGOs), political representatives, civil servants and workers of Rajasthan and Andhra Pradesh collectively organise social audits to prevent corruption under the NREGA.{{sfn|Dobhal|2011|p=420}} As the corruption is attributed to the secrecy in governance, the 'Janasunani' or public hearing and the right to information (RTI), enacted in 2005, are used to fight this secrecy.{{sfn|Goetz|Jenkins|1999}} Official records obtained using RTI are read out at the public hearing to identify and rectify irregularities. "This process of reviewing official records and determining whether state reported expenditures reflect the actual monies spent on the ground is referred to as a social audit."{{sfn|Aiyar|2009|pp=8–9}} Participation of informed citizens promotes collective responsibility and awareness about entitlements.{{sfn|Chandoke|2007}}

A continuous process of social audit on NREGA works involves public vigilance and verification at the stipulated 11 stages of implementation: registration of families; distribution of job cards; receipt of work applications; selection of suitable public works; preparation of technical estimates; work allocation; implementation and supervision; payment of wages; payment of unemployment allowance; evaluation of outcomes; and mandatory social audit in the Gram Sabha or Social Audit Forum. The Gram Panchayat Secretary is designated as the authority responsible for carrying out the social audit at all stages. For some stages, the programme officer and the junior engineer is also responsible along with Sarpanch.{{sfn|Ministry of Rural Development|2005|pp=46–54}}

The statute designates the Gram Sabha meetings held to conduct social audit as the 'Social Audit Forums' and spells out three steps to make them effective: publicity and preparation of documents; organizational and procedural aspects; and the mandatory agenda involving questions verifying compliance with norms specified at each of the 11 stages of implementation.{{sfn|Ministry of Rural Development|2005|pp=55–61}}

An application under the RTI to access relevant official documents is the first step of the social audit. Then the management personnel of the social audit verify these official records by conducting field visits. Finally, the 'Janasunani' or public hearing is organised at two levels: the Panchayat or village level and the Mandal level. The direct public debate involving the beneficiaries, political representatives, civil servants and, above all, the government officers responsible for implementing the NREGA works highlights corruption like the practice of rigging muster rolls (attendance registers) and also generates public awareness about the scheme.{{sfn|Aiyar|2009|pp=12–16}}

These social audits on NREGA works in Rajasthan highlight: a significant demand for the scheme, less than 2 per cent corruption in the form of fudging of muster rolls, building the water harvesting infrastructure as the first priority in the drought-prone district, reduction of out-migration, and above all the women participation of more than 80 per cent in the employment guarantee scheme. The need for effective management of tasks, timely payment of wages and provision of support facilities at work sites is also emphasised.{{sfn|Malekar|2006}}<ref>{{Cite news |last=Ghildiyal |first=Subodh |date=11 June 2006 |title=More women opt for rural job scheme in Rajasthan |work=The Times of India |url=https://timesofindia.indiatimes.com/india/More-women-opt-for-rural-job-scheme-in-Rajasthan/articleshow/1637657.cms |url-status=live |archive-url=https://web.archive.org/web/20131029201255/http://articles.timesofindia.indiatimes.com/2006-06-11/india/27785021_1_rural-job-nrega-road-work |archive-date=29 October 2013}}</ref>

To assess the effectiveness of the mass social audits on NREGA works in Andhra Pradesh, a World Bank study investigated the effect of the social audit on the level of public awareness about NREGA, its effect on the NREGA implementation, and its efficacy as a grievance redressal mechanism. The study found that the public awareness about the NREGA increased from about 30 per cent before the social audit to about 99 per cent after the social audit. Further, the efficacy of NREGA implementation increased from an average of about 60 per cent to about 97 per cent.{{sfn|World Bank|2008}}{{sfn|Aiyar|2009}} In 2014 a large number of localities did not conduct NREGA social audits.<ref>{{Cite web |date=2016-04-29 |title=No MGNREGA social audit done in close to 50% gram panchayats in 2014-15: CAG |url=https://www.thehindubusinessline.com/economy/no-mgnrega-social-audit-done-in-close-to-50-gram-panchayats-in-2014-15-cag/article64333359.ece |url-access=subscription |access-date=2022-04-19 |website=The Hindu BusinessLine |language=en}}</ref> Social audits have been found lacking in terms of quality and retrievability.<ref>{{Cite web |last= |first= |date=4 October 2021 |title=NREGA implementation: 'Unsatisfactory' social audit across States, Govt of India told |url=https://www.counterview.net/2021/10/nrega-implementation-unsatisfactory.html |access-date=2022-04-19 |publisher=Counterview}}</ref>

=== Wages === {| class="wikitable plainrowheaders sortable" style="float:right; clear:right; max-width:45em; font-size:85%;" ! rowspan="2" |State ! colspan="3" |Per day wages (In Rs.)<ref name=":3">{{Cite web |title=Wage Rates |url=https://mgnrega.cg.nic.in/WageRates.aspx |website= |publisher=Mahatma Gandhi National Rural Employment Guarantee Scheme, Department of Panchayat and Rural Development, Government of Chhattisgarh}}</ref> ! rowspan="2" |State ! colspan="3" |Per day wages (In Rs.)<ref name=":3" /> |- !2022 !2018 !2012 !2022 !2018 !2012 |- !Andhra Pradesh |257 |205 |137 !Manipur |251 |209 |144 |- !Arunachal Pradesh |216 |177 |124 !Meghalaya |230 |181 |128 |- !Assam |229 |189 |136 !Mizoram |233 |194 |136 |- !Bihar |210 |168 |122 !Nagaland |216 |177 |124 |- !Chhattisgarh |204 |174 |132 !Odisha |222 |182 |126 |- !Goa |315 |254 |158 !Punjab |281 |240 |166 |- !Gujarat |239 |194 |134 !Rajasthan |231 |192 |133 |- !Haryana |331 |281 |191 !Sikkim |222 |177 |124 |- !Himachal Pradesh |266 |184 |157 !Tamil Nadu |281 |224 |132 |- !Jharkhand |210 |168 |122 !Telangana |257 |205 |{{Em dash}} |- !Karnataka |309 |249 |155 !Tripura |212 |177 |124 |- !Kerala |311 |271 |164 !Uttar Pradesh |213 |175 |125 |- !Madhya Pradesh |204 |174 |132 !Uttarakhand |213 |175 |125 |- !Maharashtra |256 |203 |145 !West Bengal |223 |191 |136 |- ! colspan="8" |One day is considered as 9 hours of work with one hour of rest.{{Sfn|Dutta|Murgai|Ravallion|Walle|2014|p=3}} Difference between states due to difference in state-wise inflation rates.{{Sfn|Dutta|Murgai|Ravallion|Walle|2014|p=3}} 2022: Highest- {{INRConvert|331|lk=on}} Lowest- {{INRConvert|204|lk=on}} per day wages |} {{See also|Minimum Wages Act 1948#Conflict of MGNREGA wage rates and the Minimum Wages Act}}

Wage transfer processes in relation to NREGA have undergone significant changes since its initial implementation.<ref name=":5">{{Cite web |last=Drèze |first=Jean |date=19 November 2020 |title=Jean Dreze: Last-mile hurdles in NREGA payments puncture India's techno-utopian delusions |url=https://scroll.in/article/978862/jean-dreze-last-mile-hurdles-in-nrega-payments-puncture-indias-techno-utopian-delusions |access-date=2022-04-17 |website=Scroll.in |language=en-US}}</ref> In 2011/2016, the wage payment method was shifted to the National electronic Fund Management System (Ne-FMS), a Direct Benefit Transfer system.<ref>{{Cite web |last=Nandy |first=Debmalya |date=15 July 2019 |title=Underfunding, misleading claims: The story of MGNREGA in New India |url=https://www.downtoearth.org.in/blog/economy/underfunding-misleading-claims-the-story-of-mgnrega-in-new-india-65627 |access-date=2022-04-18 |website=Down to Earth}}</ref>{{Sfn|Narayanan|Dhorajiwala|Golani|2019|p=3}}<ref>{{Cite web |date=2 August 2018 |agency=Press Information Bureau |title=99% of wage payments electronically credited into workers account through Direct Benefit Transfer system to bring more transparency and minimize leakages in MGNREGS |url=https://rural.nic.in/en/press-release/99-wage-payments-electronically-credited-workers-account-through-direct-benefit |access-date=17 April 2022 |website=Ministry of Rural Development, Government of India}}</ref> The Consumer Price Index-Agriculture Labour (CPI-AL) now provides a guide to fixing MGNREGA wages.<ref name=":4">{{Cite web |last=Sharma |first=Harikishan |date=2022-03-30 |title=NREGS wages revised, less than 5 per cent hike in 21 states, Union Territories |url=https://indianexpress.com/article/india/nregs-wages-revised-less-than-5-per-cent-hike-in-21-states-union-territories-7843460/ |access-date=2022-04-17 |website=The Indian Express |language=en}}</ref> The scheme has resulted in an increase in the growth rate of wages when the initial pre and post NREGA years are considered.<ref>{{Cite journal |last1=Narayanamoorthya |first1=A. |last2=Bhattaraib |first2=Madhusudan |date=2013 |title=Rural Employment Scheme and Agricultural Wage Rate Nexus: An Analysis across States |journal=Agricultural Economics Research Review |volume=26 |pages=149–163}}</ref>

As of 2019, the wages are less than the minimum wages in a majority of states and union territories.<ref>{{Cite web |date=2 April 2019 |title=MNREGA wage hike less than minimum wage in 33 states |url=https://www.downtoearth.org.in/news/agriculture/mnrega-wage-hike-less-than-minimum-wage-in-33-states-63791 |access-date=2022-04-17 |website=Down to Earth}}</ref> Since 2009 wages stipulated under MGNREGA are disconnected from wages determined by the Minimum Wages Act.{{Sfn|Dutta|Murgai|Ravallion|Walle|2014|p=3}} There has been some debate with regard to comparison between the two wages.<ref>{{Cite journal |last=Sankaran |first=Kamala |date=2011 |title=NREGA Wages: Ensuring Decent Work |url=https://www.jstor.org/stable/27918140 |journal=Economic and Political Weekly |volume=46 |issue=7 |pages=23–25 |jstor=27918140 |issn=0012-9976}}</ref><ref>{{Cite web |last=Ediwn |first=Tina |date=2020-03-29 |title=MGNREGA wages up about 11%; yet at least 40% lower than minimum wages |url=https://www.thehindubusinessline.com/economy/mgnrega-wages-up-about-11-yet-at-least-40-lower-than-minimum-wages/article31197140.ece |access-date=2022-04-17 |website=The Hindu BusinessLine}}</ref><ref>{{Cite news |last=Balchand |first=K. |date=2011-10-16 |title=Minimum wages likely for MGNREGA workers |language=en-IN |work=The Hindu |url=https://www.thehindu.com/news/national//article60531415.ece |access-date=2022-04-17 |issn=0971-751X}}</ref><ref>{{Cite web |last=Joyita |date=September 23, 2013 |title=Mahatma Gandhi National Rural Employment Guarantee Act: Review of implementation |url=https://prsindia.org/theprsblog/mahatma-gandhi-national-rural-employment-guarantee-act-review-of-implementation?page=97&per-page=1 |access-date=2022-04-17 |website=PRS Legislative Research |language=en-US}}</ref> One day is considered as 9 hours of work with one hour of rest.{{Sfn|Dutta|Murgai|Ravallion|Walle|2014|p=3}} Payment is on a piece work basis.<ref name=":6">{{Cite web |last=Khera |first=Reetika |date=2014-11-04 |others=Data research: Dimple Kukreja. Visualisation: Sanjit Oberai & Chaitanya Mallapur |title=The Whys and Whats of India's Rural Jobs Scheme |url=https://www.indiaspend.com/the-whys-and-whats-of-indias-rural-jobs-scheme-99284/ |archive-url=https://web.archive.org/web/20180907073236/http://www.indiaspend.com:80/cover-story/the-whys-and-whats-of-indias-rural-jobs-scheme-99284 |archive-date=7 September 2018 |access-date=2022-04-18 |website=IndiaSpend}}</ref>

In addition to expanding the transparency of the scheme via digitization, Strong increases in the minimum wage improved the plan. As was previously mentioned in section II, the previous salaries had resulted in a lack of desire among employees and harmed the caliber of work completed under the program. As a result, the minimum wage was raised by 10% to Rs. 169 per day as part of the 2014 programs. Even though the rise was not significant, it greatly increased the motivation of low-income rural workers, encouraging them to enter the labor field.<ref name=":8" />

Wage payments face delays, in some cases up to 200 days.{{Sfn|Narayanan|Dhorajiwala|Golani|2019|p=1-3}} Center-state disunity, compliance, and "infrastructural bottlenecks" are some of the causes of delay.{{Sfn|Narayanan|Dhorajiwala|Golani|2019|p=2}} By 2021, 99.7% of payments under the Act were through electronic transfer.<ref>{{Cite web |date=6 August 2021 |publisher=Ministry of Rural Development, Government of India |title=9.7 per cent payment of MGNREGA wages being made through e-transfer |url=https://rural.nic.in/en/press-release/997-cent-payment-mgnrega-wages-being-made-through-e-transfer |access-date=17 April 2022 |website=Press Information Bureau}}</ref> These are also affected by "last mile" issues.<ref name=":5" /> Ideal financial inclusion in still lacking.<ref name=":5" /><ref>{{Cite web |last=Nandy |first=Debmalya |date=5 November 2018 |title=MGNREGA is failing: 10 reasons why |url=https://www.downtoearth.org.in/blog/economy/mgnrega-is-failing-10-reasons-why-62035 |access-date=2022-04-18 |website=Down to Earth}}</ref> While the scheme stipulates 100 days, in practice the average is around 45 days.<ref>{{Cite web |last=Kapoor |first=Mudit |date=18 September 2018 |title=Forget 100 days! Not even 50 days of employment provided under MGNREGS |url=https://www.businesstoday.in/latest/story/forget-100-days-not-even-50-days-of-employment-provided-under-mgnregs-110417-2018-09-18 |access-date=2022-04-19 |website=Business Today |language=en}}</ref>{{Clear}}

=== Asset creation === Assets created include rural connectivity assets such as pucca roads and brick soling, land development assets which improve productivity of land such as the creation of new plantations, unskilled construction such as poultry shelters, cattle shelters and fish drying yard platform. Water-related assets include village tanks and ponds, check dams, water harvesting tanks, bunding, irrigation channels, renovation of existing water assets. Infrastructure construction also includes sanitation works and grain storage facilities. The act also provides for maintenance of created assets.<ref>{{Cite web |date=2015 |title=Towards Creation of Sustainable Assets under MGNREGA… |url=https://nrega.nic.in/Circular_Archive/archive/Photobook_Documentation_Sustainable_Assets_Created.pdf |publisher=Ministry of Rural Development, Government of India, New Delhi}}</ref> Asset creation varies widely between states with five states accounting for a majority of the assets.<ref>{{Cite web |last=Jadhav |first=Radheshyam |date=2019-09-07 |title=MGNREGS: More than half the assets created are concentrated in just 5 States |url=https://www.thehindubusinessline.com/news/national/mgnregs-more-than-half-the-assets-created-are-concentrated-in-just-5-states/article29360329.ece |access-date=2022-04-19 |website=The Hindu BusinessLine}}</ref> The focus of MNREGA has also shifted to quality of assets and skilling workers to map assets.<ref>{{Cite news |last=Sharma |first=Nidhi |date=2 March 2020 |title=MGNREGA focus on asset quality, skilling now |work=The Economic Times |url=https://economictimes.indiatimes.com/news/politics-and-nation/mgnrega-focus-on-asset-quality-skilling-now/articleshow/74433019.cms?from=mdr |access-date=2022-04-19}}</ref>

Over the last decade, it has been observed that more than half the NREGA funds have been spent on water related projects. This was very much needed because water bodies have been shrinking, especially in rural India. India became a water deficient nation 5 years ago, and every year since then, the water level has shrunk further. Though over Rs 20,000 crores under MGNREGA has been spent each year during the last decade on developing rural water bodies, wells, aquifers, catchment areas, etc, these were not permanent assets.{{Citation needed|date=April 2022}}<ref>{{Cite web |date=2 July 2019 |publisher=Ministry of Rural Development, Government of India |title=Water Conservation under MGNREGS |url=https://pib.gov.in/PressReleasePage.aspx?PRID=1576612 |access-date=2022-04-17 |website=Press Information Bureau}}</ref> thumb|MGNREGA Workers removing mud from a dry pond at village Asir, District Sirsa of Haryana, India

=== Convergence === There has been increasing rationale for convergence of MNREGA with other government schemes.<ref>{{Cite news |date=13 September 2013 |title=Convergence of MNREGA with other welfare schemes on anvil |work=The Economic Times |url=https://economictimes.indiatimes.com/news/economy/policy/convergence-of-mnrega-with-other-welfare-schemes-on-anvil/articleshow/22556915.cms?from=mdr |access-date=2022-04-19}}</ref><ref>{{Cite web |last1=Nayak |first1=Narayan Chandra |last2=Jenamani |first2=Mamata |last3=Sahoo |first3=Bimal K |title=Assessment of the Convergence Activities under Mahatma Gandhi NREGA in Odisha |url=https://tsird.gov.in/documents/resources/cnrm/Assessment%20of%20the%20Convergence%20Activities%20under%20Mahatma%20Gandhi%20NREGA%20in%20Odisha.pdf |website=Telangana State Institute of Rural Development |publisher=National Institute of Rural Development and Panchayati Raj}}</ref> Assets created under the act have been converged with aligning assets from other schemes such as housing and sanitation schemes.<ref>{{Cite web |last=Aiyar |first=Yamini |date=4 July 2019 |title=Should PM-KISAN and MGNREGS Co-Exist? |url=https://cprindia.org/should-pm-kisan-and-mgnregs-co-exist/ |access-date=2022-04-19 |website=Centre for Policy Research}}</ref><ref>{{Cite journal |last1=Vasudevan |first1=Gayathri |last2=Singh |first2=Shanu |last3=Gupta |first3=Gaurav |last4=Jalajakshi |first4=C. K. |date=2020 |title=MGNREGA in the Times of COVID-19 and Beyond: Can India do More with Less? |journal=The Indian Journal of Labour Economics |volume=63 |issue=3 |pages=799–814 |doi=10.1007/s41027-020-00247-0 |issn=0971-7927 |pmc=7478243 |pmid=32921943}}</ref> Member of Parliament Local Area Development Scheme was converged in 2012.<ref>{{Cite news |date=23 January 2012 |title=Govt converges MPLAD & MGNREGA to create more durable assets |work=The Economic Times |agency=PTI |url=https://economictimes.indiatimes.com/news/economy/policy/govt-converges-mplad-mgnrega-to-create-more-durable-assets/articleshow/11605108.cms |access-date=2022-04-19}}</ref> Trekking trails have been planned in Himachal Pradesh.<ref>{{Cite web |last=Thakur |first=Naresh K |date=2020-02-09 |title=Chamba to develop trekking trails under MGNREGA convergence scheme |url=https://www.hindustantimes.com/cities/chamba-to-develop-trekking-trails-under-mgnrega-convergence-scheme/story-aYMe2kJdN6NLYSpgtAwusM.html |access-date=2022-04-19 |website=Hindustan Times |language=en}}</ref> Convergence calls for greater inter-department cooperation.<ref name=":7">{{Cite web |last= |date=August 23, 2018 |title=MGNREGA and DAYNRLM convergence, best method to address state's dev progs: Tashi {{!}} The Arunachal Times |url=https://arunachaltimes.in/index.php/2018/08/23/mgnrega-and-daynrlm-convergence-best-method-to-address-states-dev-progs-tashi/ |access-date=2022-04-19 |website=The Arunachal Times}}</ref> While convergence has been seen as a way to save resources, at the same time it weakens income means for those availing the scheme.<ref>{{Cite web |last=Nandy |first=Debmalya |date=28 September 2021 |title=A shift in focus in NREGA |url=https://www.telegraphindia.com/opinion/a-shift-in-focus-in-nrega/cid/1832449 |access-date=2022-04-19 |website=Telegraph India}}</ref><ref name=":7" />

=== Composition of youth workforce === In 2013-14, the ratio of young workers among total MGNREGA workers was 13.64 per cent which came down to 7.73 percent in 2017-18 before rising to 9.1 percent in 2018-19 and 10.06 percent in 2019-20.The trend shows that a steady decline in the proportion of young workers, those between 18 and 30, under the Act has halted and has begun to rise in the wake of demonetisation and the rollout of GST.<ref>{{cite web |last=Sharma |first=Harikishan |date=22 October 2019 |title=Distress signal: Share of youngest workers in NREG begins to rise |url=https://indianexpress.com/article/business/economy/distress-signal-share-of-youngest-workers-in-nreg-begins-to-rise-6081133/ |access-date=2020-04-04 |publisher=The Indian Express}}</ref> This has been projected by a section of analysts as a reflection of rural distress intensifying.

== Subsequent developments == By 2015, over a thousand advisories and circulars related to the act had been issued.<ref>{{Cite web |last=Tewari |first=Ruhi |date=13 November 2015 |title=Save MGNREGA, don't drown it in paperwork |url=https://www.dailyo.in/politics/mgnrega-narendra-modi-nda-upa-panchayats-rural-development-ministry/story/1/7346.html |access-date=2022-04-18 |website=DailyO}}</ref>

=== New amendments proposed in 2014 === {{Update section|date=October 2015}} Union Rural Development Minister Nitin Gadkari proposed to limit MGNREGA programmes within tribal and poor areas. He also proposed to change the labour: material ratio from 60:40 to 51:49. As per the new proposal, the programme will be implemented in 2,500 backward blocks.<ref name=":1">{{Cite news |last=Yadav |first=Anumeha |date=2014-09-21 |title=Changes to MGNREGS may cut into wages |language=en-IN |work=The Hindu |url=https://www.thehindu.com/todays-paper/tp-national/changes-to-mgnregs-may-cut-into-wages/article6433087.ece |access-date=2022-04-16 |issn=0971-751X}}</ref><ref>{{Cite news |last=Yadav |first=Anumeha |date=2014-11-05 |title=With Gadkari away, MNREGS changes yet to take shape |language=en-IN |work=The Hindu |url=https://www.thehindu.com/news/national/With-Union-Rural-Development-Minister-Nitin-Gadkari-away-MNREGS-changes-yet-to-take-shape/article60415966.ece |access-date=2022-04-16 |issn=0971-751X}}</ref> Both proposals came in for sharp criticism. A number of economists with diverse views opposed the idea of restricting or "focusing" implementation in a few districts or blocks.<ref>{{cite web |author=Dilip Abreu |author2=Pranab Bardhan |author3=Maitreesh Ghatak |author4=Ashok Kotwal |author5=Dilip Mookherjee |author6=Debraj Ray |date=Nov 22, 2014 |title=Wrong numbers: Attack on NREGA is misleading |url=https://timesofindia.indiatimes.com/home/sunday-times/all-that-matters/Wrong-numbers-Attack-on-NREGA-is-misleading/articleshow/45085301.cms |access-date=18 January 2019 |work=The Times of India}}</ref><ref>{{Cite web |last=Ravallion |first=Martin |date=2014-10-24 |title=MGNREGA is unwell |url=https://indianexpress.com/article/opinion/editorials/mgnrega-is-unwell/ |access-date=2022-04-16 |website=The Indian Express}}</ref><ref>{{Cite news |last=Ray |first=Atmadip |date=12 November 2014 |title=NREGA is in need of reform: Jean Dreze, economist-cum-activist |work=The Economic Times |url=https://economictimes.indiatimes.com/opinion/interviews/nrega-is-in-need-of-reform-jean-dreze-economist-cum-activist/articleshow/45117070.cms |access-date=2022-04-16}}</ref><ref>{{Cite web |date=14 October 2014 |title=Full Text of Leading Economists' Letter to PM Modi on NREGA |url=https://www.ndtv.com/india-news/full-text-of-leading-economists-letter-to-pm-modi-on-nrega-679089 |access-date=2022-04-19 |website=NDTV}}</ref>

In the November 2014 cabinet expansion, Birender Singh replaced Nitin Gadkari as rural development minister. Among the first statements made by the new minister was an assurance that NREGA would continue in all districts. Around the same time, however, NREGA budget saw a sharp cut,<ref>{{cite news |last=Acharya |first=Namrata |date=8 November 2014 |title=Sharpest-ever fund cut for rural job scheme |newspaper=Business Standard India |url=https://www.business-standard.com/article/economy-policy/sharpest-ever-fund-cut-for-rural-job-scheme-114110801336_1.html}}</ref> and in the name of 'focusing' on a few blocks the programme has been limited to those blocks.<ref>{{Cite web |last=Venkatesh |first=M |date=17 November 2014 |title=Union Government Limits MGNREGA to 69 Taluks |url=https://www.newindianexpress.com/states/karnataka/2014/nov/17/union-government-limits-mgnrega-to-69-taluks-683393.html |access-date=2022-04-16 |website=The New Indian Express}}</ref><ref>{{Cite news |date=12 November 2014 |title=NREGA will cover all 600 districts: Birender Singh |work=The Economic Times |url=https://economictimes.indiatimes.com/news/politics-and-nation/nrega-will-cover-all-600-districts-birender-singh/articleshow/45108673.cms |access-date=2022-04-18}}</ref>{{Clarify|reason=Select blocks?|date=April 2022}} The Government of India (GoI) has created a new Ministry of Jal Shakti to allow faster decision making on all subjects related to water. On 1 July 2019 the GoI has launched the ambitious Jal Shakti Abhiyan (JSA) across 256 districts covering 1593 water stress blocks with a focus on water conservation and rain water harvesting. The effort will be to make water conservation a “mass movement” like Swachhata Abhiyan in the country [https://nrega.org.in/ MGNREGA] is a key partner in the JSA and is committed to make it a success.

=== Save MGNREGA === In September 2014 'Save MGNREGA' is a set of demands proposed during the joint meeting of the national leadership of Centre of Indian Trade Unions (CITU), All India Agricultural Workers Union (AIAWU), All India Democratic Women's Association (AIDWA) and All India Kisan Sabha (AIKS) in New Delhi. The agenda was to discuss the dilution of MGNREGA scheme by the new government. Following demands were proposed:<ref>{{cite web |date=14 September 2014 |title=Call for joint movement to Protect and strengthen MGNREGA |url=https://peoplesdemocracy.in/2014/0914_pd/call-joint-movement-protect-and-strengthen-mgnrega |website=Peoples Democracy}}</ref>

# Government of India should increase the Central allocation for the scheme so that number of workdays can be increased to 200 and per day wage can be increased to Rs. 300. # Job card to be issued for everyone who demands job, failing which, after 15 days employment benefits should be given. # Minimum 150 days of work should be ensured to all card holders # Minimum wage act should be strictly implemented. Delay in wage payment should be resolved. # MGNREGA should be extended to urban areas. # Gram Sabhas should be strengthened to monitor proper implementation of the scheme and also to check corruption.

=== New amendments proposed in 2017 === Finance Minister Arun Jaitley announced Rs. 48,000 crore to be allocated to the MGNREGA as a part of 2017 Union budget of India.<ref>{{citation |last1=Chitravanshi |first1=Ruchika |title=Arun Jaitley gives highest ever allocation for MGNREGS in Budget 2017 |date=2 February 2017 |url=http://economictimes.indiatimes.com/news/economy/policy/highest-ever-allocation-for-mgnrega-at-rs-48000-crore-arun-jaitley/articleshow/56907695.cms |newspaper=The Economic Times}}</ref><ref>{{citation |last=Chitnis |first=Purva |title=Budget 2017: Highest Ever Allocation For MGNREGA At Rs 48,000 Crore, Says Jaitley |date=1 February 2017 |url=https://www.ndtvprofit.com/union-budget-india/budget-2017-highest-ever-allocation-for-mgnrega-at-rs-48000-crore-says-jaitley |newspaper=Bloomberg Quint}}</ref>

==Criticism== {{Quote box | quote = My political instincts tell me that MNREGA should not be discontinued... This is a living monument of your failure to tackle poverty in 60 years. After so many years in power, all you were able to deliver is for a poor man to dig ditches a few days a month. | author = Prime Minister Narendra Modi | source = February 2015<ref>{{Cite web |last= |first= |date=27 February 2015 |title=Modi says MNREGA will continue as a living monument to Congress failure |url=http://scroll.in/article/710095/modi-says-mnrega-will-continue-as-a-living-monument-to-congress-failure |access-date=2022-04-18 |website=Scroll.in |language=en-US}}</ref><ref>{{Cite web |date=2016-02-02 |agency=PTI |title=Now Modi govt praises MGNREGA, 'living monument of UPA's failure' |url=https://www.firstpost.com/india/u-turn-on-mgnrega-now-nda-govt-terms-scheme-cause-of-national-pride-2606330.html |access-date=2022-04-18 |website=Firstpost |language=en}}</ref>. Environment Sciences says the true story, i.e. revival of the Water Table (ref Ministry of Rural Development). | width = 250px }}

A major criticism of the MGNREGA is that a lot of money disbursed by the government gets siphoned off by middlemen, thus leaving a number of MGNREGA workers either with unpaid wages or less than standard wages. In Mahuadand, Jharkhand, most of the people who had worked under the MGNREGA did not get paid, while some either got paid less than stipulated or were given 5 kg of rice by private contractors instead.<ref name="wire1">{{cite news|last1=Narayanan|first1=Rajendran|title=Communalism Has Been Injected Even in Bread and Butter Issues of Jharkhand|url=https://thewire.in/151604/communalism-has-been-injected-even-in-the-bread-and-butter-issues-ofjharkhand/|access-date=27 June 2017|publisher=The Wire|date=27 June 2017}}</ref> Following allegations of corruption in the scheme, the NDA government ordered a re-evaluation of MNREGA in 2015.<ref name=":0" /><ref>{{citation |last=Bhalla |first=Surjeet S. |title=No proof required: Move from NREGA to cash transfers |date=12 December 2014 |url=http://indianexpress.com/article/opinion/columns/no-proof-required-move-from-nrega-to-cash-transfers |publisher=The Indian Express}}</ref> Between 2017 and 2021 about 1000 crore of funds were stolen in the form of bribes, ghost accounts and fake material rates (loss rate is 0.4% p.a.).<ref>{{Cite web |date=21 August 2021 |title=Nearly Rs 1,000 Crore Misappropriated In Last Four Years Under NREGA Schemes |url=https://thewire.in/government/rs-935-crore-misappropriated-last-four-years-nrega-schemes-government-audits |access-date=2022-04-18 |website=The Wire}}</ref> However there are proponents that claim NREGA is relatively successful in reducing corruption.<ref name=":6" />

Another criticism of NREGA is that it is making agriculture less profitable.<ref>{{Cite web |last=Mahapatra |first=Richard |date=15 March 2013 |title=Victim of its success |url=https://www.downtoearth.org.in/coverage/victim-of-its-success-40443 |access-date=2022-04-18 |website=Down to Earth}}</ref> Landholders often oppose it on these grounds. The big farmer's point of view can be summed up as follows: landless labourers are lazy and they don't want to work on farms as they can get money without doing anything at NREGA worksites; farmers may have to sell their land, thereby laying foundation for the corporate farming.{{citation needed|date=October 2015}}. Farm workers earn twice as much per day (breakfast, lunch and samosa & tea included), as the workers on NREGA workssites.

Economists like Jagdish Bhagwati and Arvind Panagariya have described NREGA as "an inefficient instrument of shifting income to the poor" – the general notion being that it takes five rupees to transfer one rupee to NREGA workers. This may be an exaggeration of consultancies, reviews and analysis, and needs to be verified by the National Institute of Rural Development (Hyderabad), and compared with green renovation of the parks in urban India. Economists including Surjit Bhalla have termed it as unsuccessful suggesting that schemes such as the NREGA need to be junked, saying that any scheme with 85 percent leakages can't be proclaimed to be "working successfully".<ref>{{Cite web |last=Kumar |first=Akanksha |date=2016-02-11 |title=11 Years of NREGA: Surjit Bhalla on the Failure of the Scheme |url=https://www.thequint.com/news/india/nrega-has-been-a-horrendous-failure-economist-surjit-bhalla |access-date=2022-04-16 |website=TheQuint |language=en}}</ref>

Issues related to delayed/inadequate wage payments persist in the programme’s implementation.<ref>{{Cite web |title=Delays in processing of MGNREGA wage payment |url=https://www.dvara.com/research/blog/2021/05/03/delays-in-processing-of-mgnrega-wage-payments/}}</ref><ref>{{Cite news |url=https://theprint.in/india/governance/inordinate-delay-in-release-of-funds-for-mgnrega-workers-discouraging-parliamentary-panel/620037/|title='Inordinate delay' in release of funds for MGNREGA workers discouraging — Parliamentary panel |date=11 March 2021 }}</ref>

In the Economic Survey of 2025-2026, the government argued that there has been around 53% decline in the demand for MGNREGA jobs between 2020 and 2025, implying that the scheme has been becoming irrelevant. But this could be due to base effect as 2020 saw covid crisis and a subsequent high subscription for MGNREGA jobs following the lockdown in other sectors.<ref>{{Cite book |title=Economic Survey 2025-26 |publisher=Ministry of Finance, Department of Economic Affairs, Economic Division |year=2026 |location=Kartavya Bhavan-1, New Delhi-110001 |publication-date=January 2026}}</ref> Following this the new scheme VB-G RAM G has replaced MGNREGA in December 2025.<ref>{{Cite news |date=2025-12-21 |title=VB—G RAM G Bill gets President nod, replacing MGNREGA with new rural employment policy |url=https://economictimes.indiatimes.com/news/economy/policy/vbg-ram-g-bill-gets-president-nod-employment-guarantee-extended-to-125-days-mgnrega/articleshow/126104986.cms?from=mdr |access-date=2026-04-03 |work=The Economic Times |issn=0013-0389}}</ref>

==Notes== {{notelist}} {{Clear}}

==References==

=== Citations === {{Reflist}}

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== Further reading == * {{Cite book |last1=Sudha |first1=Narayanan |url=https://books.google.com/books?id=jgPIDgAAQBAJ |title=The "Discouraged Worker Effect" in public works programs: Evidence from the MGNREGA in India |last2=Upasak |first2=Das |last3=Yanyan |first3=Liu |last4=Barrett |first4=Christopher |date=2017 |publisher=Intl Food Policy Res Inst }} * {{Cite web |last1=Narayanan |first1=Rajendran |last2=Dhorajiwala |first2=Sakina |last3=Buddha |first3=Chakradhar |date=January 2021 |title=Can a Machine Learn Democracy? |url=https://cse.azimpremjiuniversity.edu.in/wp-content/uploads/2021/01/Narayanan_Dhorajiwala_Buddha_Machine_Democracy_Jan_2021.pdf |publisher=Centre for Sustainable Employment, Azim Premji University}} * {{Cite journal |last1=Reddy |first1=A. Amarender |last2=Singha Roy |first2=Namrata |last3=Pradeep |first3=Divya |date=2021 |title=Has India's Employment Guarantee Program Achieved Intended Targets? |journal=SAGE Open |language=en |volume=11 |issue=4 |pages=215824402110522 |doi=10.1177/21582440211052281 |s2cid=239609046 |issn=2158-2440|doi-access=free }} * {{Cite book |url=https://books.google.com/books?id=dDlfDwAAQBAJ |title=Employment Guarantee Programme and Dynamics of Rural Transformation in India: Challenges and Opportunities |date=2018 |publisher=Springer |isbn=978-981-10-6262-9 |veditors=Madhusudan B, PK V, Rudra NM, Cynthia B |ref={{sfnref|Chapter 1, Employment Guarantee Programme and Dynamics of Rural Transformation in India|2018}}}}

== External links == * {{Commons-inline|Category:NREGA|NREGA}} * {{Official website|https://mgnrega.in/}} * [https://ruraldiksha.nic.in/RuralDashboard/MGNREGA_NEW.aspx# Ministry of Rural Development, Government of India] {{Webarchive|url=https://web.archive.org/web/20220523023402/https://ruraldiksha.nic.in/RuralDashboard/MGNREGA_New.aspx |date=23 May 2022 }} * [https://web.archive.org/web/20130816020142/http://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_performance/2013/Civil/Report_6/Report_6.html Report of the CAG on Performance Audit of MGNREGA] * [https://web.archive.org/web/20130921125532/http://nrega.nic.in/netnrega/writereaddata/Circulars/MGNREGA_SAMEEKSHA.pdf MGNREGA Sameeksha, An Anthology of Research Studies on MGNREGA] * [https://nrega.nic.in/Netnrega/WriteReaddata/Circulars/AMC_2018-19_nk_v3_21.03.18.pdf MGNREGA Master Circular Guide FY2018-19] * [https://nrega.nic.in/Netnrega/Data/SPS_Watershed_Works_Manual_Eng.pdf National Rural Employment Guarantee Act Watershed Works Manual 2006] * [https://www.cwds.ac.in/wp-content/uploads/2018/07/NREGA_Report.pdf Women in NREGA: Issues of Child Care. Case Studies from Rajasthan and Uttar Pradesh] * [https://mgnrega.org/ NREGA website]

Category:Employment in India Category:Rural development in India Category:Welfare in India Category:Indian labour law Category:Right to work Category:Work relief programs Category:Manmohan Singh administration