Parliamentary Standing Committee Report on MGNREGA

On 8th February, 2022, the Parliamentary Standing committee on Rural Development and Panchayati Raj submitted its evaluation report of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Key recommendations include:

  • Review Budgetary Allocation: It recommended government to “review its budgetary demand pertaining to MGNREGA as well to ensure that ‘agreed to labour budget’ is made at concerned level.
  • Hike Wage Rate: It recommended a hike in wage rates and in the number of days of guaranteed work, and a revision of the 60:40 wage-material ratio under the scheme.
  • Not to Index MGNREGA Wages to Consumer Price Index-Rural: The panel urged the government to review of the decision not to index MGNREGA wages to the Consumer Price Index-Rural, rather than the lower index for agricultural labourers.
  • Unified Wage Rate: A unified wage rate to be notified across the country to discourage distress migration.
  • Increase Number of Guaranteed Days: It recommended an increase in the number of guaranteed days of work per household from 100 to 150 and further diversifying the nature of works under MGNREGA to meet 150 days of work.
  • Inclusion of Agricultural Works: Inclusion of agricultural works and agricultural labourers under the permissible domain of MGNREGA such as sowing, fencing, cutting of weeds, etc. was recommended by the committee.
  • Involvement of Members of Parliament (MPs): Increase the involvement of MPs through the issuance of directives to state governments and local bodies.