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

When democracy becomes a performance: The Tibetan exile experience

By Tseten Lhundup*  I was born in Bylakuppe, one of the largest Tibetan settlements in southern India. From childhood, I grew up in simple barracks, along muddy roads, and in fields with limited resources. Over the years, I have watched our democratic system slowly erode. Observing the recent budget session of the 17th Tibetan Parliament-in-Exile, these “democratic procedures” appear grand and orderly on the surface, yet in reality they amount to little more than empty formalities. The parliamentarians seem largely disconnected from the everyday struggles faced by ordinary exiled Tibetans like us.

Study links sanctions to 500,000 deaths annually leading to rise in global backlash

By Bharat Dogra  International opinion is increasingly turning against the expanding burden of sanctions imposed on a growing number of countries. These measures are contributing to humanitarian crises, intensifying domestic discord, and heightening international tensions, thereby increasing the risks of conflicts and wars. 

Dhurandhar: The Revenge — Blurring the line between fiction and political narrative

By Mohd. Ziyaullah Khan*  "Dhurandhar: The Revenge" does not wait to be remembered; it arrives almost on the heels of its predecessor, released on March 19, 2026, just months after the first film’s December 2025 debut. The speed of its arrival feels less like creative urgency and more like calculated timing—cinema responding not to storytelling rhythm but to the emotional climate of its audience. Director Aditya Dhar, along with actor Yami Gautam, appears acutely aware of this moment and how to harness it.

Beyond the island: Top mythologist reorients the geography of the Ramayana

By Jag Jivan   In a compelling new analysis that challenges conventional geographical assumptions about the ancient epic, writer and mythologist Devdutt Pattanaik has traced the roots of the Ramayana to the forests and river systems of Central and Eastern India, rather than the peninsular south or the modern island nation of Sri Lanka.

BJP accounts for 99% of political donations in Gujarat: Corporate giants dominate

By Jag Jivan   An analysis of the official data on donations received by national parties from Gujarat during the Financial Year 2024-25 reveals a staggering concentration of funding, with the Bharatiya Janata Party (BJP) accounting for nearly the entirety of the contributions. The data, compiled in a document titled "National Parties donations received from Gujarat during FY-2024-25," lists thousands of transactions, painting a detailed picture of the financial backing for political parties from one of India’s most industrially significant states.

Alarming decline in India's repair culture threatens circular economy goals: Study

By Jag Jivan  A comprehensive new study by environmental research and advocacy organisation Toxics Link has painted a worrying picture of India's fading repair culture, warning that the trend towards replacement over repair is accelerating the country's already critical e-waste crisis.

Captains extraordinaire: Ranking cricket’s most influential skippers

By Harsh Thakor*  Ranking the greatest cricket captains is a subjective exercise, often sparking passionate debate among fans. The following list is not merely a tally of wins and losses; it is an assessment of leadership’s deeper impact. My criteria fuse a captain’s playing record with their tactical skill, placing the highest consideration on their ability to reshape a team’s fortunes and inspire those around them. A captain who inherited a dominant empire is judged differently from one who resurrected a nation’s cricket from the doldrums. With that in mind, here is my perspective on the finest leaders the game has ever seen.

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.

‘No merit’ in Chakraborty’s claims: Personal ethics talk sans details raises questions

By Jag Jivan  A recent opinion piece published in The Quint by Subhash Chandra Garg has raised questions over the circumstances surrounding the resignation of Atanu Chakraborty from HDFC Bank , with Garg stating that the exit “raises doubts about his own ‘ethics’.” Garg, currently Chief Policy Advisor at Subhanjali and former Secretary of the Department of Economic Affairs, Government of India, writes that the Reserve Bank of India ( RBI ) appears to find no substance in Chakraborty’s claims, noting, “It is clear the RBI sees no merit in Atanu Chakraborty’s wild and vague assertions.”