MGNREGA in Gujarat: A story of betrayal, corruption, and systemic neglect

By Hemantkumar Shah* 

In 2005, the UPA government introduced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), aimed at ensuring a minimum of 100 days of guaranteed wage employment to rural households annually. While modest in scope—just 100 days out of 365—it was an acknowledgment of the state’s constitutional responsibility to ensure the right to work. However, like many welfare laws in India, its implementation was delegated to the states. The central government provides funds—100% for wages, 75% for materials—leaving state governments primarily responsible for ensuring proper implementation.

In Gujarat, MGNREGA is administered by the Panchayat, Rural Development, and Rural Housing Department. Yet, the scheme’s actual implementation raises serious concerns. As per government data, of the 48.82 lakh job card holders in Gujarat, only 18.03 lakh are active. Among 97.44 lakh registered workers, only 18,007 were provided the full 100 days of employment in 2024–25. Not once since the scheme’s inception in 2005 has Gujarat provided all active job seekers with the legally mandated 100 days of work. Gujarat's average days of employment under the scheme in 2024–25 stood at just 46.9, below the national average of 49 days. Average wages paid (₹248.44) were lower than the national average (₹250.24). Adivasi communities account for 43.21% of MGNREGA beneficiaries in Gujarat, reflecting the acute unemployment in tribal areas. However, even in these regions, full employment under the scheme is not achieved.

What’s worse is that budget allocations fall far short of what is needed. If the scheme cannot even provide 50 days of employment within current funding, how can it ever meet its 100-day guarantee?

MGNREGA mandates social audits to be conducted by Gram Sabhas. But in Gujarat, such audits are rarely genuine; they exist only on paper. Workers often remain unaware of their rights, and information asymmetry prevails. The Gujarat government has never complied with the law’s Clause 3, which requires providing at least 100 days of employment. In 2018–19, the state provided only 46.05 days, 43.19 days the following year, and just 42.52 days in 2020–21. Even in 2022–23, when implementation improved slightly, it still fell short at 49.67 days. Despite a 2014 central government directive to provide 150 days of employment to tribal areas, this has not been honored—particularly ironic since tribal belts account for the majority of MGNREGA participation in Gujarat.

The notified minimum wage for MGNREGA workers in Gujarat is ₹229, significantly lower than ₹324.20 for agricultural laborers. According to Section 6(2) of the Act, MGNREGA wages should be at least equal to those of farm laborers. Shockingly, Gujarat's MGNREGA wages are lower than in 17 other Indian states. Between 2022–23, when the notified wage was ₹224, the actual average wage paid was ₹219.95. While agricultural wages have risen by nearly 82%, MGNREGA wages have only gone up by around 2.5%. To rectify this injustice, Gujarat should immediately raise MGNREGA wages to match the state’s agricultural minimum wage of ₹324.20, benefiting nearly 18 lakh active job-seeking households.

In the past five years, multiple scams have marred Gujarat’s MGNREGA program. In Bharuch district, ₹7.3 crore was misappropriated in three talukas (Amod, Hansot, Jambusar) involving an agency from Veraval. In Dahod district, ₹71 crore was misused; even a local sarpanch's son was arrested. In Banaskantha, fake names of 500 villagers were registered under the scheme. These frauds persist because the scheme is not implemented in the spirit of the law.

Key concerns include the use of private agencies to implement the scheme, despite the Act mandating Gram Panchayats to carry out this responsibility directly. Panchayats at the taluka and district levels are rarely involved in a structured way. Though the law provides for social audits by Gram Sabhas, these meetings seldom occur or conduct meaningful reviews. Without active participation of citizens in monitoring implementation, transparency cannot be achieved. While the system is now largely digitized, this alone has not prevented corruption. For digital governance to be effective, both beneficiaries and taxpayers must be engaged in oversight.

Furthermore, wages are supposed to be paid within 15 days of work completion. Since this rarely happens, workers—many of whom rely on daily earnings for survival—are discouraged from seeking work under the scheme. The declining interest among rural workers stems not from lack of need, but from a lack of faith in the system’s delivery.

The MGNREGA scheme was envisioned as a lifeline for the rural poor and a constitutional affirmation of the right to work. In Gujarat, however, its implementation has been marred by systemic neglect, bureaucratic inefficiency, and outright fraud. The low number of workdays, subpar wages, lack of accountability, and betrayal of tribal communities paint a grim picture. It is time the Gujarat government took corrective action—not only to uphold the law but to serve the vulnerable citizens it is meant to protect.

---

*Senior economist based in Ahmedabad