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BeyondHeadlines > India > Proposed Changes to MGNREGA Will Choke the Scheme, WPI Says
India

Proposed Changes to MGNREGA Will Choke the Scheme, WPI Says

Beyond Headlines
Beyond Headlines Published September 24, 2014 2 Views
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BeyondHeadlines News Desk

Union Minister for Rural Development Nitin Gadkari proposed changes to Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), including change in permissible labor to material ratio of expenses from the current 60:40 to 51:49.

The government is yet to meet the existing upper limit in expenditure, but proposes its increase from 40% to 49%. The proposed change is likely to increase the presence of contractors in the job scheme while shrinking the funds available for wages.

Mr. Gadkari also proposed restriction of MGNREGA works to tribal and poor areas or blocks. Reacting to the proposed changes to MGNREGA, Welfare Party of India (WPI) said any such reforms and changes would affect the scheme.

WPI General Secretary Dr. SQR Ilyas criticized the Gadkari formula to revise the labor to material ratio and expressed apprehension that the changes will choke the scheme that stimulated the rural economy and employment.

“Raising the labor to material proportion will reduce the fund available for labourers. One fails to understand the logic of raising the fund for material, when there is heavy underutilization of the funds in 2012-13 and 2013-14,” he added.

“While financial supply line meant for the poor and rural people is chocked by these kind of reforms and changes, sops and concessions for ‘haves’ and superrich not only go untouched, but get increased.”

As per the 2011 census data, only 2500 such poorer blocks exist in the country and the figure is derived by using five parameters of drinking water, electricity, female literacy, banking facility etc. It means the scope and sphere of the NREGS will shrink considerably and will adversely affect thousands of households, with womenfolk suffering the most, WPI noted in a statement.

Dr. Ilyas also alleged that such changes to an Act (MGNREGA) without consent of the Parliament are an unhealthy trend and asked Mr. Gadkari either withdraw the changes or bring it before the Parliament.

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