MGNREGA monthly wages double to ₹1,000 per person amid pandemic: Crisil report1 min read . Updated: 25 Aug 2020, 07:05 PM IST
The April-July period typically sees around 25% more work execution in terms of person-days under the scheme compared to the rest of the year, thereby aiding rural income
MUMBAI : The rural distress following the pandemic has seen the average monthly income per person under the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) doubling to around ₹1,000 in the first four months of the fiscal from ₹509 in FY2020, according to an analysis by Crisil.
The April-July period typically sees around 25% more work execution in terms of person-days under the scheme compared to the rest of the year, thereby aiding rural income.
This is understandable as tens of millions of workers have returned home jobless from cities due to the pandemic driven lockdowns."This fiscal, however, these four months saw a growth of 46% on-year in person-days, coupled with an increase of 12% in average wage under the scheme thanks to the pandemic, which has pushed urban labourers back into their villages," says the report. The scheme has a mandate of providing at least 100 days of jobs in a financial year to every rural household.
The budget for 2020-21 has allocated ₹61,500 crore for the scheme and later the government increased it by ₹40,000 crore amid the pandemic to support the rural economy. Of the total of ₹1,01,500 crore, ₹11,500 crore has to be spent on clearing pending dues of fiscal 2020, leaving ₹90,000 crore for the current fiscal.
Even after considering the revised allocation, more than 50 per cent of the funds have been spent in the first four months of the fiscal.
The scheme has seen higher demand in Haryana, Uttar Pradesh, Bihar, Bengal, Odisha and Gujarat, where work allocation has increased more than 50% on-year in the first four months.
The maximum increase in absolute payout was seen in Andhra where it more than doubled to ₹1,340 from ₹533 during the reporting period, followed by Odisha where it increased to ₹1,121 from ₹421 and in Karnataka where it jumped to ₹1,088 from ₹593, Haryana at ₹1,075 from ₹600, Gujarat at ₹1,031 from ₹507 and UP where it rose to ₹1,004 from ₹576.