Government forms panel to look into MGNREGA’s efficacy

Source: The post is based on the articleGovernment forms panel to look into MGNREGA’s efficacypublished in The Hindu on 26th November.

What is the News?

The Government of India has constituted a committee to review the implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme.

About the Committee to review the MGNREGA Act

Headed by: Amarjeet Sinha, Former Rural Development Secretary.

Mandate: 1) To investigate variables influencing the demand for MGNREGA, 2) To suggest measures to reduce regional imbalance by offering more opportunities to the most deserving States, 3) assess the work composition and advise the appropriate change and 4) evaluate the governance structure and recommend improvements.

What is the significance of this review committee on MGNREGA?

As rural communities recovered from the pandemic amidst rising prices and a dearth of non-farm employment options, they were in dire need of the MNREGA scheme.

However, residents of relatively affluent states may have fared better in securing work under this anti-poverty job program.

For example, the spending of states such as Bihar and Odisha under the scheme lags those of states such as Tamil Nadu and Rajasthan which have a higher per-capita income.

Hence, the review of the scheme will help in ensuring that poorer regions get a fair share of the resources.

Note: According to data from the Centre for Monitoring Indian Economy (CMIE), a private think-tank, rural unemployment in India has stayed around 7% throughout the majority of the current fiscal year.

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