Skip to main content

GoI 'violating' NREG Act, unpaid wage dues to reach Rs 21,000 crore by March 2022

Percent of initial NREGA budget spent in clearing past dues
By A Representative 
A civil rights group, Peoples' Action for Employment Guarantee (PAEG), in a report ahead of the budget for financial year (FY) 2022-23 has said that though the destructive impact of the Covid-19 pandemic on health has impacted the poor most, and the Mahatma Gandhi National Rural Employment Guarantee Act (NREGA) has acted as a crucial shock absorber for the rural poor, the implementation of the Act is dogged by poor budgetary allocation and delayed wage payments.
“For instance, persondays generated increased by 46% in FY 2020-21, compared to the previous FY or financial year”, it says adding, “The persondays generated this FY till December 2021 have already exceeded FY 2019-20’s total persondays by 10%. In fact, the true demand is even higher than the nationally reported demand, the reasons for which are explained in an earlier PAEG tracker.”
Stating that “the FY 2020-21 ended up with unpaid dues of over Rs 17,000 crore despite an allocation of Rs 40,000 crore in addition to the original allocation of Rs 61,500 crore”, the report says, this is one reason why PAEG and the NREGA Sangharsh Morcha recommended a budget allocation of at least Rs 1.5 lakh crore for FY 21-22 to honour the demand driven nature of the Act.”
“However”, it regrets “Despite persistent need for work, the government allocated only Rs. 73,000 crore, 26% of which corresponded to previous years’ dues. Within the first half of FY 2021-22, NREGA coffers had become empty. PAEG’s half-yearly tracker showed that many states had a negative balance.”
Pointing out that “this prompted the government to allocate an additional Rs 25,000 crore in December 2021”, the report says, “However, official data as of January 24, 2022, shows that only Rs 7,114 crore of those Rs 25,000 crore has been released. 
So far, less than 5% of households employed have completed 100 days of work in the current FY”, while the official data suggest that “the number of households who have worked in this FY is 6.69 crore, whereas only 29 lakh households have completed 100 days of wage employment as of January 25, 2022.”
On an average, the report says, “Over the past five years, 20% of the budget has gone into clearing the arrears of previous years. The unpaid dues this year are already at Rs 12,494 crore. Assuming the expenditure trend so far in this FY continues, we estimate that over Rs 21,000 crore would be pending at the end of FY 2021-22.”
The the report notes, the MGNREG Act states in Chapter III, Paragraph 6, Section 2, “that wages must be at least as much as the minimum agricultural wage for each state. In our estimation, we take the minimum agricultural wages announced by the various state governments as given in Aggarwal & Paikra (2020) and adjust them by 5% for inflation in every successive FY. Using the number of active job cards in each state as weights, we estimate that the national average minimum wage rate is Rs 269.”
Taking Rs 269 as the wage rate, the report estimates that “the minimum budget for FY 2022-23 must be Rs 2.64 lakh crore, to provide legally guaranteed 100 days of work per household for at least those that worked in the current FY”, insisting, “This is a conservative estimate that considers only households that were employed this year – a mere 67.34% of the total active job cards as on January 24, 2022 – at the estimated minimum wage rate.”
Pointing towards “delays in wage payments”, which have persisted in NREGA for many years now, “and are a consequence of inadequate funds allocation as acknowledged by the Ministry of Finance itself”, and even “the Act stipulates that wages must be credited to the workers’ accounts within 15 days of completion of work”, the report says. 
Yet, the Government of India (GoI) “continues to violate the Act” as also Supreme Court orders “by not paying wages on time and not paying the corresponding delay compensation as mandated by the Act.”
Stating that “the delay compensation is rarely paid”, the report says, “Only 1.69% of payable compensation has been paid this year.” In fact, “This FY, the Centre took longer than the stipulated 7-day period to process 50.2% of wages – although we don’t know the extent of the delay.”
“Currently, 13% of transactions are pending, amounting to more than Rs 7,047 crore. Not paying wages on time is akin to forced labour and violates several fundamental rights of crores of workers”, it insists.

Comments

TRENDING

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Rajiv Shah  Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

The golden crop: How turmeric is transforming women's lives in tribal India

By Vikas Meshram*   When the lush green fields of turmeric sway in the tribal belt of southern Rajasthan, Madhya Pradesh, and Gujarat, it is not merely a spice crop — it is the golden glow of self-reliance. In villages where even basic spices once had to be bought from the market, the very soil today is yielding a prosperity that has transformed the lives of thousands of families. At the heart of this transformation is the initiative of Vaagdhara, which has linked turmeric with livelihoods, nutrition, and village self-governance — gram swaraj.

Beyond the election manifesto: Why climate is now a kitchen table issue

By Vikas Meshram*  March has long been a month of gentle transition, the period when winter softly retreats and a mild warmth signals nature’s renewal. Yet, in recent years, this dependable rhythm has been disrupted. This year, since the beginning of March, temperatures across vast swathes of the country have shattered previous records, soaring to between 35 and 40 degrees Celsius in some regions. This is not a mere fluctuation in the weather; it is a serious and alarming indicator of climate change .

As India logs historic emissions drop, expert warns govt against 'policy blunders'

By A Representative   In a significant development that underscores the rapid transformation of India's energy landscape, new data reveals the country recorded its largest drop in power sector emissions in 2025. However, a top power sector analyst has urged the Union Government to view this "silver lining" as a stark warning against continuing to invest in new coal, large hydro, and nuclear projects, which he argues could become "redundant" stranded assets.

The selective memory of a violent city: Uttam Nagar and the invisible victims of Delhi

By Sunil Kumar*  Hundreds of murders take place in Delhi every year, yet only a few incidents become topics of nationwide discussion. The question is: why does this happen? Today, the incident in Uttam Nagar has become the centre of national debate. A 26-year-old man, Tarun Kumar, was killed following a dispute that reportedly began after a balloon hit a small child. In several colonies of Delhi, slogans such as “Jai Shri Ram” and “Vande Mataram” are being raised while demanding the death penalty for Tarun’s killers. As a result, nearly 50,000 residents of Hastsal JJ Colony are now living in what resembles a state of confinement. 

NGO Arunoday’s journey of support and struggle: Standing firm with the distressed

By Bharat Dogra    It was a situation of acute distress. Nearly ten thousand people returning to their villages during the COVID-19 pandemic had gathered at the border of Uttar Pradesh and Madhya Pradesh near Kanha. Exhausted after walking long distances with little or no food, they were desperate for relief. Yet entry could not be granted without completing essential records and complying with pandemic rules.  

How wars are undermining climate promises even as accelerating global warming

By N.S. Venkataraman*     Since 1995, global climate conferences have convened annually, with the 29th Conference of Parties (COP29) held in November 2024. These gatherings attract world leaders and generate extensive media coverage, raising hopes of decisive strategies to address the climate emergency. Yet, despite lofty promises and ambitious targets, the crisis remains unabated.  

Jerusalem's Al Aqsa mosque under siege: A test of Muslim solidarity and Palestine’s future

By Syed Ali Mujtaba*  In the cacophony of Israel’s and the United States’ attack on Iran, one piece of news has been buried under the debris of war: Israel has closed the Al Aqsa Mosque in Jerusalem to Palestinian worshippers during the holy month of Ramadan. The closure, announced as indefinite, affects the third most revered mosque in the Islamic world.