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27 Jan 2026·Source: The Hindu
3 min
EconomySocial IssuesPolity & GovernanceEDITORIAL

MGNREGA Replacement: Flawed Arguments and Rural Employment Concerns

Arguments for replacing MGNREGA lack substance, raising concerns about rural employment.

MGNREGA Replacement: Flawed Arguments and Rural Employment Concerns

Photo by Rohit Dey

Editorial Analysis

The editorial discusses the lack of substantial arguments for replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). It highlights concerns regarding rural employment and the potential negative impacts of altering or dismantling the scheme. The editorial suggests that the arguments in favor of replacing MGNREGA are weak and do not adequately address the needs of rural populations who rely on this employment guarantee.

UPSC Exam Angles

1.

GS Paper 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

2.

GS Paper 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

3.

Potential question types: Analyzing the socio-economic impact of MGNREGA, evaluating its effectiveness in poverty reduction, and assessing the challenges in its implementation.

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Background

The genesis of MGNREGA can be traced back to pilot programs like the Employment Assurance Scheme (EAS) launched in 1993 and the Sampoorna Grameen Rozgar Yojana (SGRY) in 2001, aimed at providing wage employment in rural areas. These schemes, while well-intentioned, suffered from issues like inconsistent funding and lack of legal backing. The National Rural Employment Guarantee Act (NREGA) of 2005, later renamed MGNREGA, marked a significant shift by legally guaranteeing 100 days of wage employment to every rural household whose adult members volunteer to do unskilled manual work.

This legal mandate distinguished it from earlier schemes, making it an entitlement-based program. The Act drew inspiration from successful employment guarantee schemes implemented in states like Maharashtra in the 1970s. Over the years, MGNREGA has faced criticisms regarding implementation challenges, corruption, and asset quality, but it has also evolved to incorporate features like social audits and increased wage rates.

Latest Developments

In recent years, MGNREGA has seen increased demand, particularly following economic disruptions caused by events like the COVID-19 pandemic. This surge in demand has put pressure on government finances and led to debates about the scheme's effectiveness and efficiency. There's been a growing emphasis on convergence with other rural development programs, such as the National Rural Livelihoods Mission (NRLM), to create more sustainable livelihood opportunities.

The use of technology, including geo-tagging of assets and direct benefit transfer (DBT) of wages, has been promoted to improve transparency and reduce corruption. Looking ahead, discussions are centered on enhancing the scheme's focus on creating durable assets, improving skill development for MGNREGA workers, and addressing regional disparities in employment provision. The future of MGNREGA will likely involve a greater emphasis on sustainability, skill enhancement, and convergence with other rural development initiatives.

Frequently Asked Questions

1. What is MGNREGA and why is it important, according to the editorial?

According to the editorial, MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) is important because it provides an employment guarantee to rural populations. The editorial highlights concerns that replacing it could negatively impact rural employment.

2. What are the key concerns raised about replacing MGNREGA?

The main concern is the potential negative impact on rural employment, as the arguments for replacing MGNREGA are considered weak and fail to adequately address the needs of rural populations who rely on the scheme.

3. What was the historical background of MGNREGA?

MGNREGA's genesis can be traced back to earlier schemes like the Employment Assurance Scheme (EAS) in 1993 and the Sampoorna Grameen Rozgar Yojana (SGRY) in 2001. These schemes aimed to provide wage employment in rural areas but faced challenges like inconsistent funding.

4. Why is MGNREGA in the news recently?

MGNREGA is in the news due to debates about its effectiveness and efficiency, especially with increased demand following economic disruptions like the COVID-19 pandemic. This has put pressure on government finances.

5. What are the arguments against MGNREGA that might lead to calls for its replacement?

The editorial suggests that arguments for replacing MGNREGA are based on concerns about its effectiveness and efficiency, potentially linked to the financial burden on the government due to increased demand.

6. As an administrator, what reforms would you suggest for MGNREGA to improve its effectiveness?

Based on the provided context, reforms should focus on improving efficiency and convergence with other rural development programs. Addressing financial pressures due to increased demand is also crucial.

7. What are the pros and cons of MGNREGA, considering the current debate?

Pros include providing a crucial employment safety net in rural areas. Cons involve concerns about its efficiency, potential financial strain on the government, and debates about whether it adequately addresses rural needs.

8. What is the focus of current developments related to MGNREGA?

Current developments emphasize convergence with other rural development programs, such as the National Rural Livelihoods Mission, to enhance its impact.

9. What are the key facts about MGNREGA that are important for the UPSC Prelims exam?

For Prelims, remember that MGNREGA aims to provide a legal guarantee of wage employment in rural areas. Also, be aware of its historical context, stemming from earlier employment schemes.

10. What are the potential impacts on common citizens if MGNREGA is replaced?

If MGNREGA is replaced, common citizens in rural areas could face increased unemployment and reduced income, especially those who rely on it as a safety net during economic hardship.

Practice Questions (MCQs)

1. Which of the following statements accurately describes the historical evolution of employment guarantee schemes in India leading up to the enactment of MGNREGA? 1. The Employment Assurance Scheme (EAS) launched in 1993 provided a legal guarantee of wage employment. 2. The Sampoorna Grameen Rozgar Yojana (SGRY) in 2001 was the first scheme to incorporate social audits. 3. MGNREGA's legal framework drew inspiration from employment guarantee schemes implemented in states like Maharashtra in the 1970s. Select the correct answer using the code given below:

  • A.Only 1
  • B.Only 3
  • C.1 and 2
  • D.2 and 3
Show Answer

Answer: B

Statement 1 is INCORRECT: The EAS did NOT provide a legal guarantee; it was a scheme aimed at providing wage employment but lacked legal backing. Statement 2 is INCORRECT: The SGRY did not introduce social audits. Social audits were a later addition to employment schemes, particularly emphasized under MGNREGA. Statement 3 is CORRECT: MGNREGA's legal framework was indeed inspired by successful employment guarantee schemes like the one implemented in Maharashtra in the 1970s, which provided a model for legally guaranteeing employment.

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