NREGA: Demand for Rs 3.62 lakh crore as BJP govt 'intentionally ignores scheme'

Counterview Desk
Demanding "adequate budget" for the National Rural Employment Guarantee Act (NREGA) in 2022-23, the advocacy group NREGA Sangharsh Morcha (NSM) has pointed towards how funds for the rural jobs scheme are allowed to be dried up, leading to NREGA workers failing to get wage payments on time or even the stipulated compensation in case of delay.
In a statement ahead of the Union budget, the NGO states, at a time when the pandemic has further pushed the rural poor into distress, the BJP government is "intentionally ignoring the programme", which is helpful to the economy, adding, NREGA wages would "increase disposable income in rural areas", which in turn help "boost demand and increase consumption."

Text:

The stress on the economy became evident, especially in the aftermath of the raging pandemic from the 7.3% contraction in GDP in 2020-21. The distress faced by poorer households has continued over a period of time with the pandemic acting as a catalyst in increasing the woes of such households.
In a latest round of survey conducted by People’s Research on India’s Consumer Economy (PRICE) revealed that the share of the poorest 20% accounted for 5.9% of the total household income in 1995, which has dropped further to 3.3% in 2021.
On the other hand, the share of the richest 20% has jumped from 50.2% to 56.3% in the same period. Such a distress can be addressed to a large extent by the National Rural Employment Guarantee Act (NREGA), the public works programme which guarantees 100 days of paid employment to rural households.
NREGA Sangharsh Morcha expects a conservative allocation of around 3 lakh 62 thousand crore in the financial year 2022-23 for the effective implementation of the programme. Table 1 shows the manner of arriving at the estimation.
Leaving aside the legislative obligation to ensure that NREGA functions well, providing resources to improve NREGA will be helpful for the economy in general. NREGA wages would increase disposable income in rural areas.

This in turn will boost demand and increase consumption. However, the BJP government is intentionally ignoring the programme, year after year.

Drying up of funds

As on January 30, 2022 (R 14.6), 60 percent of wage payments were pending for the month. Every financial year, from the third quarter onwards, the funds for NREGA dry up. As a result, work slows down and delays in wage payments escalate.
Every year, about 20 percent of the NREGA budget is used to clear arrears. Within the first half of FY 2021-22, the programme showed a negative net balance condemning workers to “forced labour” by delaying wage payments.
This cycle keeps continuing and adversely affects workers in the peak NREGA season in the final quarter of the financial year. NSM has been consistently demanding that budgetary allocation for NREGA should be adequate to meet the legal guarantee of 100 days of work for every rural household demanding work and timely payment of wages.

Delay in wage payments

While the Ministry of Rural Development (MoRD) claims to have made progress in timely wage payments, large delays in wage payments still plague the programme.
According to the report authored by researchers from LibTech India titled ‘Heavy Wait’, only 56 percent of the transactions were successfully completed in 15 days after Funds Transfer Orders (FTOs) were sent to the Government of India (GoI). The report also stated that the Centre alone was responsible for delays in transferring wages for 71% of the total transactions.

Another study by LibTech India, found out that the Centre is taking 26 days on an average to complete the wage transfer to the NREGA workers in Andhra Pradesh. Additionally, despite calculating delays made by the centre in depositing wages, the delays made by the centre are not added to calculate delay compensation.
As per R 14.1, only 1.76% of payable delay compensation has been paid till 30th January. The centre must fix accountability on the agencies that cause the delays and ensure that workers are compensated for the full duration of the delay in the crediting of wages to their bank account.

Stagnating wage rates

The issue of stagnating wage rates is not new to NREGA. The government's decision to index the wage rate to the Consumer Price Index - Rural (CPI-R) as opposed to the older Consumer Price Index - Agricultural Labourers (CPI-AL) is a welcome move.
However, it has made such an announcement many times in the past and has not acted on it. Also, the change in index will lead to a very meagre increase in NREGA wages since they are very low to begin with. The new indexation will be meaningful if the NREGA wages are at least at par with the minimum wages in the states.

Strengthening gram panchayat planning

The Act had envisioned that gram panchayats would be instrumental in planning what work can be undertaken and what kind of assets can be built based on local needs.
With the passing of years, the planning of what work should be undertaken is thrust by the Centre. There is a need to ensure that the planning process is bottom-up in nature and gram panchayats have a greater say in deciding the nature of assets.

Comments

From snowstorms to heatwaves: India’s alarming climate shift in 2025

By Dr. Gurinder Kaur* Climate change is no longer a future concern—it is visibly affecting every country today. Since the beginning of 2025, its effects on India have become starkly evident. These include unseasonal snowfall in hill states, the early onset of heatwaves in southern regions, a shortening spring season, and unusually early and heavy rainfall, among other phenomena.

'Incoherent, dogmatic': Near collapse of international communist movement

By Harsh Thakor* The international communist movement today lacks coherence or organizational unity. Many groups worldwide identify as communist, Marxist-Leninist, or Maoist, but most promote dogmatism, reformism, or capitulation, using revolutionary rhetoric. Some trace their origins to historical betrayals, like Trotsky’s efforts to undermine the Soviet socialist transition or the 1976 coup in China that restored a bourgeoisie under Deng Xiaoping. Others focus on online posturing rather than mass engagement. Small communist organizations exist in places like Turkey, South Asia, and the Philippines, where Maoist-led struggles continue. No international forum unites them, and no entity can forge one.

Priced out of life: The silent crisis in India's healthcare... who pays attention, and who takes responsibility?

By Aysha* Manisha (name changed) has been living with a disease since the birth of her third child—over ten years now—in the New Seemapuri area of North East Delhi. She visited GTB Hospital, where a doctor told her that treatment would cost ₹50,000, as the hospital would charge for the cost of an instrument that needs to be implanted in her body. Several NGOs have visited her home, yet she has received no support for treatment and continues to live with the illness. Manisha is divorced, without access to ration or pension, and lives with her three children by begging outside a temple.

Madhya Pradesh village's inspiring example of how small budget effort conserves water amidst heat wave

By Bharat Dogra Heat waves have been intensifying over vast areas of India in recent days and there are also many reports of water scarcity making the conditions worse for people. However the situation can differ significantly in various villages depending on whether or not significant water conservation efforts have been made. In recent years I have visited several villages of good water conservation efforts where I noticed that even at the time of adverse weather conditions, people of these villages as well as farm and other animals feel important relief in terms of access to adequate water. Due to water and moisture conservation, conditions of farms and pastures is also much better. What is more, with the participation and involvement of people, even quite low budgets have been utilized well to achieve very useful and durable results.

Population explosion: India needs a clear-headed policy, data-driven governance, long-term planning

By N.S. Venkataraman* At the upcoming G7 summit in Canada, Prime Minister Narendra Modi has been invited as a special guest, with Canadian Prime Minister Justin Trudeau citing two main reasons: India’s rise as the world’s fifth-largest economy and its status as the most populous nation. While economic growth is undoubtedly a point of pride, the latter distinction—India’s population—raises an important question: should this be seen as a strength or a source of growing concern? India has not conducted a national census since 2011, leaving the current population figures largely speculative. Estimates place the population at around 1.4 billion, with projections reaching 1.8 billion by 2050. Despite modest declines in fertility and death rates, the annual population growth remains between 1.5% and 2%. The next census, scheduled for 2026, will provide a more accurate demographic picture, but until then, policymaking remains uninformed by crucial data. Over the past eleven years, the gov...

Victim to cricketing politics, Alvin Kalicharan was a most organized left handed batsman

By Harsh Thakor* On March 21st Alvin Kalicharan celebrates his 75th birthday. Sadly, his exploits have been forgotten or overlooked. Arguably no left handed batsman was technically sounder or more organized than this little man. Kalicharan was classed as a left-handed version of Rohan Kanhai. Possibly no left-handed batsmen to such a degree blend technical perfection with artistry and power.

Vishwamitri river revival? New report urges action on pollution, flood risks, wildlife protection

By A Representative The Vishwamitri Committee, formed by the Gujarat State Human Rights Commission, has submitted two supplementary reports on June 5, 2025, detailing efforts to rejuvenate the Vishwamitri River in Vadodara, considered Gujarat's cultural capital. The reports (click here and here ) respond to directives from a May 26, 2025, GSHRC hearing. Comprising environmentalists, urban planners, and zoologists like Neha Sarwate, Rohit Prajapati, Dr. Ranjitsinh Devkar, Dr. Jitendra Gavali, and Mitesh Panchal, the committee focuses on mitigating pollution, stabilizing riverbanks, managing flood risks, and preserving biodiversity, particularly for crocodiles and turtles.

Mumbai jetty project: Is Colaba residential associations' outrage manufactured?

By Gajanan Khergamker When the Maharashtra Maritime Board (MMB) filed an affidavit before the Bombay High Court defending its long-planned public jetty project, it did more than just respond to a writ petition by a Colaba Residents Association. It exposed, albeit inadvertently, a far more corrosive phenomenon festering beneath the surface of urban civil life across India—a phenomenon where residential associations, many unregistered and some self-professed custodians of ‘public sentiment,’ conspire to stall governance under the veil of representation.

Central London discussion to spotlight LGBTQ+ ex-Muslim rights and persecution

By A Representative On June 13, 2025, the Dissident Club in Central London will host a public discussion to mark the 18th anniversary of the Council of Ex-Muslims of Britain (CEMB) and to commemorate World Refugee Day. The event, scheduled from 7:00 to 9:00 pm, will feature speakers Ali Malik, Maryam Namazie, and Taha Siddiqui, who are expected to address the intersecting challenges faced by LGBTQ+ ex-Muslims globally.

Search This Blog