Skip to main content

'Devastating impact': Rural workers suffer as Govt of India NREGA budget down by 34%

Counterview Desk 

A civil rights group, the NREGA Sangharsh Morcha has sent a letter to the Prime Minister and the Minister of Rural Development and Panchayati Raj stating that 34 per cent decrease in the fiscal budget of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) for year 2021-22 has added to woes on India’s rural population, already suffering from “devastating impact” of the Covid-19 pandemic.
Claiming to echo demands of crores of NREGA workers, the letter states, at at time when there is a sharp rise in rural unemployment, “MGNREGA as an entitlement for people’s right to work with dignity and social protection must be strengthened”.

Text:

The COVID 19 pandemic continues to be a serious public health issue with devastating impact on the lives and livelihoods of workers, especially informal sector, daily wage workers.
With ever increasing rate of unemployment as per the report of the Centre for Monitoring Indian Economy, in August 2021 it is at 8.32 per cent, and 34 per cent decrease in the fiscal budget of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) for year 2021-22 as compared to the revised estimate of the year 2020-21 is adding further woes on rural populations for survival and employment. The huge inflation in the past two years also means that in real terms the wages in MGNREGA remain paltry and insufficient.
In such trying times, the spirit of MGNREGA as an entitlement for people’s right to work with dignity and social protection must be strengthened. It is important that the MGNREGA is envisioned as a gender-responsive program for recovery from economic crisis with much needed reforms in the implementation mechanism and provisions over and above all existing entitlements in the MGNREGA.
The Management Information System of Government of India shows that over 70 percent of the total household provided employment in the year 2020-21 have already been provided employment in the last six months.
The mandate of the MGNREGA should be expanded as guaranteed wage employment in a financial year to every rural adult member who seeks to do unskilled manual work. This will increase scope for rural unemployed labour to engage in productive resource building activity with protection of workers right to work with dignity, wages and social security, especially in the areas where there is forced migration for survival and livelihoods.
The NREGA Sangharsh Morcha therefore demands:
  • The Government of India should notify a wage rate of Rs.600/day for NREGA workers as per recommendations of the 7th Pay commission which will allow dignified living for 15cr households who are registered under NREGA. A respectable increase in wages of MGNREGA workers has become urgent keeping in mind the huge inflation in the prices of food and all consumer goods.
  • The Government of India should notify allocation of 150 days of wage work annually for each job card holding individual. Keeping with this demand, allocate necessary budget for employment of 29 crore job card registered workers.
  • The Section 3 of the MGNREGA laid down that the wages shall be paid within 15 days of the closure of the Muster Roll. However, there are delays in payment of wages. With non-implementation of the detailed guidelines for the compensation of the delayed payments as per the Para 29 of the Section II of the MGNREGA. It has been also observed that there has been significant delays in payments of wages from the central government and in a pandemic year where rural citizens are cash strapped, lost their earnings and became more indebtedness as a result , these delays in releasing wages are unacceptable. We strongly demand that the central government simplifies it’s payments process and ensure on-time payments of wages in a decentralized manner. Also, all the back wages of MGNREGA workers across the states be paid as per the guidelines for the delayed payment and the Supreme Court orders in the Swaraj Abhiyan v Union of India case.
  • All members of NREGA job card holding families should be brought under the Employment State Insurance Act as a social protection measure of all MGNREGA workers.
  • Each worksite should follow Covid protocol with all required provisions such as face mask, facility for hand wash and / or sanitizers, drinking water, shed for rest and medical assistance.
  • The rationale for trifurcation of FTO based on the caste categories of workers is unclear and is causing unnecessary tension among workers. This is also at odds with the universal nature of the Act. The caste-based trifurcation of FTO needs to be revoked.
We trust that you would appreciate the need for such amendments in the policy as millions of rural households across all states in India struggle for their life and work. We sincerely hope that the Govt of India will make much awaited provisions at such a critical juncture.

Comments

TRENDING

Plastic burning in homes threatens food, water and air across Global South: Study

By Jag Jivan  In a groundbreaking  study  spanning 26 countries across the Global South , researchers have uncovered the widespread and concerning practice of households burning plastic waste as a fuel for cooking, heating, and other domestic needs. The research, published in Nature Communications , reveals that this hazardous method of managing both waste and energy poverty is driven by systemic failures in municipal services and the unaffordability of clean alternatives, posing severe risks to human health and the environment.

From protest to proof: Why civil society must rethink environmental resistance

By Shankar Sharma*  As concerned environmentalists and informed citizens, many of us share deep unease about the way environmental governance in our country is being managed—or mismanaged. Our complaints range across sectors and regions, and most of them are legitimate. Yet a hard question confronts us: are complaints, by themselves, effective? Experience suggests they are not.

Economic superpower’s social failure? Inequality, malnutrition and crisis of India's democracy

By Vikas Meshram  India may be celebrated as one of the world’s fastest-growing economies, but a closer look at who benefits from that growth tells a starkly different story. The recently released World Inequality Report 2026 lays bare a country sharply divided by wealth, privilege and power. According to the report, nearly 65 percent of India’s total wealth is owned by the richest 10 percent of its population, while the bottom half of the country controls barely 6.4 percent. The top one percent—around 14 million people—holds more than 40 percent, the highest concentration since 1961. Meanwhile, the female labour force participation rate is a dismal 15.7 percent.

Kolkata event marks 100 years since first Communist conference in India

By Harsh Thakor*   A public assembly was held in Kolkata on December 24, 2025, to mark the centenary of the First Communist Conference in India , originally convened in Kanpur from December 26 to 28, 1925. The programme was organised by CPI (ML) New Democracy at Subodh Mallik Square on Lenin Sarani. According to the organisers, around 2,000 people attended the assembly.

From colonial mercantilism to Hindutva: New book on the making of power in Gujarat

By Rajiv Shah  Professor Ghanshyam Shah ’s latest book, “ Caste-Class Hegemony and State Power: A Study of Gujarat Politics ”, published by Routledge , is penned by one of Gujarat ’s most respected chroniclers, drawing on decades of fieldwork in the state. It seeks to dissect how caste and class factors overlap to perpetuate the hegemony of upper strata in an ostensibly democratic polity. The book probes the dominance of two main political parties in Gujarat—the Indian National Congress and the BJP—arguing that both have sustained capitalist growth while reinforcing Brahmanic hierarchies.

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

The greatest threat to our food system: The aggressive push for GM crops

By Bharat Dogra  Thanks to the courageous resistance of several leading scientists who continue to speak the truth despite increasing pressures from the powerful GM crop and GM food lobby , the many-sided and in some contexts irreversible environmental and health impacts of GM foods and crops, as well as the highly disruptive effects of this technology on farmers, are widely known today. 

History, culture and literature of Fatehpur, UP, from where Maulana Hasrat Mohani hailed

By Vidya Bhushan Rawat*  Maulana Hasrat Mohani was a member of the Constituent Assembly and an extremely important leader of our freedom movement. Born in Unnao district of Uttar Pradesh, Hasrat Mohani's relationship with nearby district of Fatehpur is interesting and not explored much by biographers and historians. Dr Mohammad Ismail Azad Fatehpuri has written a book on Maulana Hasrat Mohani and Fatehpur. The book is in Urdu.  He has just come out with another important book, 'Hindi kee Pratham Rachna: Chandayan' authored by Mulla Daud Dalmai.' During my recent visit to Fatehpur town, I had an opportunity to meet Dr Mohammad Ismail Azad Fatehpuri and recorded a conversation with him on issues of history, culture and literature of Fatehpur. Sharing this conversation here with you. Kindly click this link. --- *Human rights defender. Facebook https://www.facebook.com/vbrawat , X @freetohumanity, Skype @vbrawat

Transgender Bill testimony of Govt of India's ‘contempt’ for marginalized community

Counterview Desk India’s civil society network, National Alliance of People’s Movements (NAPM)* has said that the controversial transgender Bill, passed in the Rajya Sabha on November 26, which happened to be the 70th anniversary of the Indian Constitution, is a reflection on the way the Government of India looks at the marginalized community with utter contempt.