India's Rural Ministry clarifies allegations of fall in employment generation under MGNREGS

The Ministry of Rural Development (MoRD) clarified that the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) program is well-funded to meet the fluctuating of rural labour in response to reports alleging a 16 per cent fall in employment generation in the first half of the year, reported the news agency ANI on Sunday, October 27.

The Ministry said since the scheme's inception; it has generated a total of 2,923 crore person-days from the financial year 2014-15 to 2024-25, an increase compared to the 1,660 crore person-days created between the financial year 2006-07 and 2013-14, according to the report. 

The Ministry also pointed out that the specific employment targets are not pre-set, as states and union territories can request additional labour budgets as needed, citing the scheme's demand-driven nature, as per the report. 

Ministry attributes demand

Media reports over the fluctuation were attributed to the scheme's adaptability to demand, especially as the financial year 2024-25 is ongoing, according to the ministry cited in the report.

They also highlighted the role of Direct Benefit Transfer (DBT) and Aadhaar-based payments in enhancing transparency. Through the Aadhaar-Based Payment System (ABPS), payments are credited directly into workers' accounts, eliminating intermediaries, as per the report. 

As per the agency report, 99.3 per cent of active MGNREGS workers have completed Aadhaar seeding to date, a measure that reduces transaction delays and ensures wages reach eligible workers promptly. In cases where transactions fail under ABPS, a National Automated Clearing House (NACH) mode offers an alternative for processing payments.

The Ministry also addressed concerns over the deletion of job cards and clarified that job cards are deactivated only after thorough verification. The job cards may be cancelled if they are duplicates, belong to households that have relocated, or if the sole job cardholder has passed away, as per the report. 

A total of 32.28 lakh job cards were deleted following verification in the financial year 2024-25, with the Ministry underscoring it being a part of the routine monitoring, reported the agency. 

The Ministry focused on the scheme's budget, which has seen a steady increase with the allocation of ₹86,000 crore for the financial year 2024-25, its highest since the scheme began, according to the agency report.

This year, the average minimum wage for the MGNREGS workers saw a 7 per cent, rising to ₹279 in the financial year 2024-25, from ₹155 in the financial year 2013-14, according to the news agency.