Telangana Demands MGNREGA Restoration, Citing Flaws in Current Implementation
Telangana Assembly urges Centre to restore MGNREGA's original form, highlighting implementation issues.
Photo by Rohit Dey
The Telangana Legislative Assembly has passed a unanimous resolution urging the Union government to restore the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to its original form. The state government, led by Chief Minister A. Revanth Reddy, criticized recent amendments and implementation issues, specifically mentioning geo-tagging of works, payment delays, and the reduction of funds.
This move underscores the ongoing tensions between states and the Centre regarding the implementation of national welfare schemes. For a UPSC aspirant, this highlights the critical importance of MGNREGA as a rural lifeline and the challenges in its effective delivery, often due to administrative changes and funding disputes. Understanding these federal dynamics is key to comprehending governance in India.
Key Facts
Telangana Legislative Assembly passed a unanimous resolution.
Resolution urges Union government to restore MGNREGA to its original form.
Criticism includes geo-tagging of works, payment delays, and fund reduction.
Chief Minister A. Revanth Reddy highlighted the issues.
UPSC Exam Angles
MGNREGA's features, objectives, and legal framework.
Challenges in MGNREGA implementation (administrative, financial, technological).
Federal dynamics and Centre-state relations in the context of Centrally Sponsored Schemes.
Economic impact of MGNREGA on rural livelihoods, poverty, and asset creation.
Constitutional provisions related to Right to Work and social security.
Visual Insights
Telangana's Demand for MGNREGA Restoration: A Federal Flashpoint
This map highlights Telangana, the state at the forefront of demanding the restoration of MGNREGA's original provisions. It underscores the geographical dimension of Centre-State tensions over national welfare schemes.
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MGNREGA: Key Performance Indicators & Challenges (FY 2025-26 Estimates)
This dashboard presents estimated key statistics for MGNREGA, reflecting the ongoing challenges and areas of concern highlighted by states like Telangana, particularly regarding funding and implementation efficiency.
- Estimated Budget Allocation
- ₹80,000 Crore+5% (YoY)
- Estimated Person-days Generated
- 280 Crore-3% (YoY)
- Wage Payment Delays (Beyond 15 days)
- 15-20% of paymentsStable
- Aadhaar-Based Payment System (ABPS) Adoption
- >90% of workers+5% (YoY)
While increasing, states often argue this is insufficient to meet demand and rising wage costs, leading to payment delays and reduced work availability. Telangana's demand for restoration implies a need for higher, more consistent funding.
A slight decline indicates potential issues with work availability or reduced demand due to administrative hurdles. The target is to provide 100 days per household, but average days provided are often much lower (~50 days).
A persistent issue, often due to administrative bottlenecks, fund shortages, or technical glitches (e.g., ABPS failures). Telangana specifically cited payment delays as a flaw.
While increasing transparency, mandatory ABPS has also led to exclusion issues for those without linked Aadhaar or facing technical errors, contributing to payment delays and administrative burden.
More Information
Background
Latest Developments
Practice Questions (MCQs)
1. With reference to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), consider the following statements: 1. It guarantees 100 days of wage employment in a financial year to every rural household whose adult members volunteer for unskilled manual work. 2. In case of failure to provide employment within 15 days of application, applicants are entitled to an unemployment allowance. 3. The entire funding for the wage component of the scheme is borne by the Central Government, while material costs are shared between Centre and States. 4. Geo-tagging of assets created under MGNREGA is a recent initiative aimed at enhancing transparency and accountability. Which of the statements given above are correct?
- A.1, 2 and 3 only
- B.1, 2 and 4 only
- C.3 and 4 only
- D.1, 2, 3 and 4
Show Answer
Answer: B
Statement 1 is correct. This is a core provision of MGNREGA. Statement 2 is correct. This is a key entitlement under the Act. Statement 3 is incorrect. The Central Government bears 100% of the unskilled labour cost and 75% of the material cost. The remaining 25% of material cost and 100% of the unemployment allowance are borne by the State Governments. Statement 4 is correct. Geo-tagging is a recent administrative measure introduced to monitor asset creation and improve transparency, though it has faced criticism regarding implementation challenges, as highlighted in the news.
2. In the context of Centre-State relations regarding the implementation of Centrally Sponsored Schemes like MGNREGA, which of the following statements is NOT correct?
- A.States are responsible for the effective implementation of the scheme on the ground, including identifying beneficiaries and executing works.
- B.The Union government provides financial assistance and sets broad guidelines for the scheme's operation.
- C.States have complete autonomy to modify the core objectives and entitlements of the scheme to suit local needs without central approval.
- D.Disputes over fund allocation and administrative changes can lead to tensions between the Centre and states.
Show Answer
Answer: C
Statement A is correct. States, through their local bodies (Panchayats), are the primary implementing agencies. Statement B is correct. This defines the Centre's role in Centrally Sponsored Schemes. Statement C is NOT correct. While states have some flexibility in implementation, they cannot unilaterally modify the core objectives, entitlements, or fundamental provisions of a Centrally Sponsored Scheme like MGNREGA, as it is based on a central Act. Significant changes would require consultation and approval from the Union government or amendments to the Act itself. Statement D is correct. The news itself exemplifies this, with Telangana criticizing fund reductions and administrative changes like geo-tagging.
3. Consider the following statements regarding the legal and constitutional basis of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): 1. It is a statutory right, enacted through an Act of Parliament. 2. It draws inspiration from the Directive Principles of State Policy (DPSP) in the Constitution of India. 3. The 'Right to Work' is explicitly mentioned as a Fundamental Right under Article 21 of the Indian Constitution, which MGNREGA operationalizes. Which of the statements given above is/are correct?
- A.1 only
- B.1 and 2 only
- C.2 and 3 only
- D.1, 2 and 3
Show Answer
Answer: B
Statement 1 is correct. MGNREGA was enacted by the Parliament as the 'National Rural Employment Guarantee Act, 2005', making it a statutory right. Statement 2 is correct. Article 41 of the DPSP states that 'The State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement, and in other cases of undeserved want.' MGNREGA is a direct step towards fulfilling this directive. Statement 3 is incorrect. The 'Right to Work' is NOT explicitly mentioned as a Fundamental Right under Article 21. Article 21 guarantees 'Protection of Life and Personal Liberty'. While the Supreme Court has expanded the scope of Article 21 to include various rights essential for a dignified life, the 'Right to Work' itself is primarily a DPSP and is operationalized through legislation like MGNREGA, not directly a fundamental right under Article 21.
4. Which of the following is/are potential economic impacts of a well-implemented MGNREGA scheme? 1. Reduction in distress migration from rural to urban areas. 2. Increased bargaining power for agricultural labourers, especially women. 3. Creation of durable assets like water conservation structures and rural roads. 4. Contribution to rural demand and local economic growth. Select the correct answer using the code given below:
- A.1 and 2 only
- B.3 and 4 only
- C.1, 2 and 3 only
- D.1, 2, 3 and 4
Show Answer
Answer: D
All four statements represent potential positive economic impacts of a well-implemented MGNREGA scheme. 1. Reduction in distress migration: By providing local employment, MGNREGA reduces the need for rural populations to migrate to urban areas in search of work. 2. Increased bargaining power: The guaranteed wage employment acts as a floor wage, improving the bargaining power of agricultural labourers and often leading to higher wages in the informal sector, particularly benefiting women who constitute a significant portion of MGNREGA workers. 3. Creation of durable assets: The Act mandates that works undertaken should be productive and create durable assets, such as water harvesting structures, rural connectivity, and land development, which contribute to rural infrastructure and productivity. 4. Contribution to rural demand and local economic growth: The wages paid inject money into the rural economy, boosting local demand for goods and services, thereby stimulating local economic growth.