Parl panel ticks off Centre on low wages under MGNREGA

The Parliamentary Standing Committee on Rural Development and Panchayati Raj on Tuesday criticised the Centre for delays in fund allocation under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and its “failure” to raise daily wages under the scheme to factor in inflation.

In a report tabled in Parliament, the committee emphasised that the Centre bears a greater responsibility than state governments in addressing these issues. It expressed concern over delays in fund disbursement for both wage and material components, rejecting the Department of Rural Development’s (DoRD) explanation that state governments’ non-compliance with scheme conditions was responsible.

“The Department of Rural Development is highlighting only the states’ loopholes for delays. In as much as the delay is attributable to the states, the larger responsibility is of the Central Government in this regard,” the report stated.

The panel stressed the need for timely release of funds to ensure uninterrupted implementation of MGNREGA and prompt payment of wages to rural workers.

In its response, the government highlighted its efforts to meet work demand under MGNREGA, stating that during 2023-24, 6 crore households were provided employment, resulting in the generation of 312.55 crore person days and the release of Rs 89,351.65 crore.

However, the committee criticised wage disparities across states. It pointed out that daily wages under MGNREGA ranged from Rs 221 in Madhya Pradesh and Chhattisgarh to Rs 354 in Sikkim’s panchayats and Rs 328 in Nicobar. Wages in BJP-ruled states like Madhya Pradesh and Chhattisgarh were among the lowest.

The panel urged the government to adopt the recommendations of the Anoop Satpathy Committee, which proposed a daily wage of Rs 374 under MGNREGA.

The government defended the current wage structure, stating that MGNREGA was a demand-driven scheme designed as a fallback option for rural households. It explained that from the scheme’s inception until 2010-11, wages were based on state-determined minimum wages. Since 2011-12, however, wage rates have been linked to the Consumer Price Index for Agricultural Labourers (CPI-AL).

The government also noted that some states, including Himachal Pradesh, Jharkhand and Odisha, had paid wages above the Central Government-notified rates using their own resources during 2023-24.

Despite these measures, the committee observed that MGNREGA wages remain “inadequate and not in consonance with the rising cost of living”. It reiterated the need for wage hikes to reflect inflation and ensure the scheme’s effectiveness in providing livelihood security for rural households.