WAGING CHANGE
Down To Earth|June 16, 2021
Guaranteed employment is an effective poverty alleviation tool. But it works only when governments know how to use it
A AMARENDER REDDY
WAGING CHANGE

LAST YEAR, when the Union government announced that it will pump an additional ₹40,000 crore into the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for the financial year 2020-21 as part of its covid-19 relief package, it was hailed as a well-thought-out move. After all, the anti-poverty scheme helps create durable assets like check dams and farm ponds; and improve agricultural productivity capacity of the poorest households. The additional amount the government announced was more than half of the ₹61,500 crore budget allocated for the scheme that year, and it did play a role in reducing the economic shock induced by the pandemic and the nationwide lockdown. As many as 110 million people benefitted from works under MGNREGA that year. By comparison, 78.8 million people benefitted in 2019-20 and 77.7 million in 2018-19.

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