1

The National Rural Employment Guarantee Four Years On

Dr. Santosh MehrotraDirector Institute of Applied Manpower Research(Planning Commission,Govt. of India)

Structure of presentation

Slide Numbers 30 years history of WEP 3

So why another wage employment programme? 4 NREGA 5 Objectives 6 Paradigm shift difference from earlier schemes. 7 Worked being undertaken under the Act 8 Composition of works 2009-10 9 Volume of employment provided 10-11 NREGA has generated more employment. 12 Performance among the states 13

% person days generated 2009-10 Vs % Rural Poor 14 Wage Rates Comparison and Migration 15-16 House holds completed 100 days of employment 17-18 Summary Achievements and challenges 19-22

2

3

30 yr history of WEPs…but Problems

Low programme coverage and Intensity (lack of awareness about new features of NREGS; shortage of staff)

Bureaucracy dominated planning; little participation of community in planning

Work to women ltd

Ltd days employment provided to household

Assets created not durable

Corruption: Reports of fake muster rolls; Contractors persisted; machines used, fake bills; Payment often less than prescribed wages etc.

4

So why another wage employment programme ?

Political imperative: Previous govt’s ‘India Shining’ campaign failed to win votes in May 2004 elections. Cong govt came to power on a rural/agriculture dev vote

Econ imperative: Agriculture growth slowed since latter half of 1990s – despite overall GDP growth. Rural wages/inc stagnating; Gini coeff of income worsening; 300 mn poor in 1973 and 2005; farmers committing suicide; Maoist insurgency in 200 of 631 districts

5

NREGA

The Government of India launched National Rural Employment Guarantee Act (NREGA) on February 2, 2006.

For 2006-07, 200 poorest districts were covered of total 619 districts in the first phase.

In 2007-08, 330 districts were covered in the second phase (130 districts added)

In rest of country a pre-existing WEP continued; April 2008 coverage of whole country

6

Objectives

1. Provide 100 days of employment for poorer sections i.e., landless labour and marginal farmers

2. Improve land productivity, income and employment over time

7

Paradigm Shift-differences from earlier schemes

NREGA introduces Rights Based framework: Legal Guarantee Time bound action to fulfill Guarantee Incentive structure for performance (Centre

funds 90% of costs of generating employment)

Disincentive for non performance (Unemployment allowance is state liability)

Demand based resource availability Accountability of public delivery system

8

Works being undertaken under the Act

Water Conservation and water harvesting. Drought proofing ( including afforestation Irrigation canals Provision of irrigation facility to land owned by SC and

ST, land of beneficiaries of land reforms and that of beneficiaries of Indira Awaas Yojana.

Renovation of traditional water bodies Land development Flood control works Rural connectivity to provide all weather access Any other work which may be notified by Central

Government in consultation with State Government.

9

Composition of works (2009-10)

25

2

43

6

1

4

8

64

1 Road Connectivity

2 Flood Control

3 Water Concervation

4 Drought Proofing

5 Micro Irrigation

6 Provision for irrigation for land development

7 Renovation of traditional water body

8 Land Development

9 Any other activity

10

Volume of Employment Provided

» In 2009/10 the share of SCs which received employment is 20% whereas STs share is 18%

» Average no. of person days per HH 37 for India in 2009/10, 26 in case of SGRY

SC ST

17

17.5

18

18.5

19

19.5

20

20.520

18

Employment received in 2009-10 (%)

11

Women constituted 48% of all persons working in 2009/10. But gender performance was poor in Karnatka (11.9%), Himachal Pardesh (13.6%), Assam (14.1), Mizoram (20.3) ,WB (27.5%),Chadigarh (28.1%) and Orissa (30.1%)

Guidelines Received employment

0

10

20

30

40

50

60

30

37

Share of Women employment under NREGA

%

12

NREGA has generated more employment than SGRY and NFFWP TOGETHER (Million)

SGRY+NFFWP SGRY+NFFWP SGRY+NFFWP SGRY+NFFWP NREGA NREGA2002-03 2003-04 2004-05 2005-06 2008-09 2009-10

0

200

400

600

800

1000

1200

1400E

mp

loym

ent

Gen

erat

ion

(M

illi

on

)

13

Good Performers:

Rajasthan,Mizoram, and Tripura

Under Performers:

Assam,Bihar,and West Bengal

Performance among the States

14

% Person days generated 2009-10 Vs. % Rural Poor

Andhra Pradesh

ASSAM

CHHATTISGARH

GUJARAT

HIMACHAL PRADESH

JHARKHAND

KERALA

MAHARASHTRA

MEGHALAYA

NAGALAND

PUNJAB

SIKKIM

TRIPURA

UTTARAKHAND

0 5 10 15 20 25 30 35 40 45

% rural poor

% persondays generated 2009-10

15

Wage Rates Comparison and Migration

» Raising wages in the areas where NREGA works are implemented

» Difference in the market wage rates for Agri. Activity in pre-and-post NREGA (especially in the case of women, who are paid the same rates as men under NREGA)

» Migration: they do not need to migrate to other rural areas (eg. Bihar labourers do not find work in Punjab)

16

Comparison of Wage Rates in Rural India with NREGA Wage Rates

States

Average Daily Wage Rates in Rural India, 2004-05

(Rs.)

NREGA Wage Rates (Rs.)

NREGA Wage Rates (Rs.)Men Women

2008-09 2009-10

Assam 30.23 15.52 77.58 86.01

Bihar 45.06 26.24 84.25 92.58

Gujarat 55.48 30.14 81.65 82.60

Haryana 57.83 23.35 138.74 148.70

Karnataka 49.00 27.85 78.97 85.99

Kerala 55.89 27.99 123.99 124.32

MP 40.61 26.54 78.87 87.55

Maharashtra 52.97 31.90 89.91 97.46

Orissa 44.86 14.02 88.21 103.87

Rajasthan 44.16 9.45 84.34 82.04

TN 60.79 31.23 71.99 70.52

UP 47.79 26.09 100.00 100.22

WB 44.58 32.35 81.56 88.20

All-India 61.23 44.59 86.25 88.64

17

Households completed 100 Days of Employment

» In 2009/10 only 1.60 mn HH completed 100 day of employments as against 1.83 mn in 2008/9

» Chattisgarh, MP, Orissa, Rajasthan and UP (all are poor states) are amongst the highest no. of HH completing 100 days employments.

18

0 5 10 15 20 25 30 35 400

1

2

3

4

5

6

7

8

(%)Households completed 100 days of Em-ployment in the year 2009-10

All India

Statewise

States

No

of

Per

son

day

s

19

Summary: Achievements

Total employment generated under NREG much larger than earlier WEP

Wage rates rose ( women paid same rates as men)

Self-targeting is working (SC, ST participation

After NREG, migration declined

20

SummaryChallenges Ahead

System of Social Audit: Should be performed and owned by the GPs, NGOs can assist. Manual for social audit should be circulated to all GPs, block and district officials within 3 months

Administrative Costs: Most Govt programmes allow for 10% of total expenditure for admin costs but under NREGA 6% is allowed but as is found actual expenditure is even less then 3%.

contn…..

21

Cost saving and quality of works through CONVERGENCE

Task Force on Convergence:

Lab component of non-NREGA from NREGA

Value addition for durable assets: from kutcha (NREGA) to pucca works (non-NREGA programme)

22

Challenges AheadLack of awareness: Better information, Communication, Education (IEC) is

urgently needed. Good example set by IEC strategies created for Bharat Nirman and for JNNURM should be used for NREGA

Creating Assets on Private land: To undertake employment works on land owned by small

and marginal farmers in addition to SC/ST/BPL farmers ensuring maintenance

Transparency in wage payment: Separating payment agency from implementing agency.

There is a need to strengthen Sub-Post Office/Branch Post Office to avoid malfeasance (e.g AP). 2.33 cr bank acc/PO accts opened

23