Budget Cuts Cripple MGNREGA, Threatening Rural Employment Security

The Mahatma Gandhi National Rural Employment Guarantee Act is facing a crisis due to significant budget cuts. The NREGA Sangharsh Morcha accuses the government of neglect, underfunding, and imposing exclusionary digital controls which have led to payment delays and reduced job availability for rural workers.

Rights group NREGA Sangharsh Morcha raised alarm on Saturday over budget cuts that have severely impacted the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). During a press conference in the national capital, the group warned that the scheme faces a deepening crisis due to the government's continued neglect of rural workers' rights.

The group criticized the government's allocation of only 0.3% of GDP to the program, far short of the recommended 1.6%. Economist Rajendran Narayanan highlighted that such underfunding had only seen slight relief during COVID, with an allocation of 0.58% of GDP. Chronic underfunding is causing payment delays and suppressing work demand.

The group further accused the government of implementing exclusionary digital measures, such as the NMMS app and Aadhaar-Based Payment System, which have led to worker exclusions and denied wages. They called for increased transparency, improved wages, and the restoration of funding to support the livelihood security of rural households.

(With inputs from agencies.)