BackMGNREGA average income doubled in April-July
The April-July period typically sees 25% greater work execution (in terms of person-days) under the scheme compared with the rest of the fiscal, thereby aiding rural income, the Crisil report said
PremiumThe average income per person per month under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) doubled to ₹1,000 in the first four months of this fiscal from ₹509 in the previous year, ratings and research agency Crisil said in a report on Tuesday.
“The April-July period typically sees 25% greater work execution (in terms of person-days) under the scheme compared with the rest of the fiscal, thereby aiding rural income," Crisil said. “This fiscal, however, these four months saw a growth of 46% year-on-year in person-days, coupled with an increase of 12% in average wage under the scheme."
“The primary reason for the government’s thrust on MGNREGA is the covid-19 pandemic, which has pushed urban labourers back into their villages," Crisil said.
Agriculture and MGNREGA are the only two avenues of income for many people given that every other economic activity was shut during the lockdown, said Himanshu, a professor at Jawaharlal Nehru University in New Delhi.
In May, the government had announced an additional ₹40,000 crore as budgetary support to MGNREGA after allocating ₹61,500 crore in the budget in February. The additional funds were to ensure money to pay wages, anticipating a spike in demand in rural jobs after millions of workers employed in cities went home during the lockdown.
Andhra Pradesh, Odisha, Haryana, Rajasthan and Karnataka saw wages top ₹1,000, according to Crisil. Andhra Pradesh saw one of the highest increases in wages, to ₹1,340 per person per month this year from ₹533 last year.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
