“The condition of the agricultural economy is poor. The MGNREGA budget must increase”

If the government does not accommodate the rural development ministry’s request in the upcoming Budget in February, the MGNREGA workers in the country will fail to get timely payments, yet again

“For periods as long as six months, our payments are delayed. Many labourers like us have not received money since October 10. When we all staged a dharna in Jaipur on December 29, we could get only a small part payment and not the sum they owe us. Now, tell me, how will we run our home?” asked Asha Devi, a MGNREGA worker from Kalalia village, Pali district, Rajasthan. 

These MGNREGA workers like Asha Devi suffer not only in Rajasthan but are also not getting timely payment in most of the states of the country. The Mahatma Gandhi National Rural Employment Guarantee Act provides for payment to these labourers within 15 days. 

The central government had announced Rs 60,000 crore in the budget for the year 2018-19 for MGNREGA, a scheme providing employment in rural areas of the country. In spite of that, payment of material and wages under MGNREGA has been pending in many states. This time, the Ministry of Rural Development has recommended an additional budget of Rs 20,000 crore in the budget of MGNREGA from the Ministry of Finance. Now, if the government does not accommodate the rural development ministry’s request in the budget in February, MGNREGA workers in the country will fail to get timely payments yet again.

“The condition of the agricultural economy in rural areas of the country is very poor. It is imperative that in the coming budget, the government should increase the budget in all social sectors to strengthen the rural economy. Since MGNREGA is a major contributor to the rural economy, it is important that MGNREGA budget is improved and workers get timely wages,” informed Dr Parmita Saha, professor, Department of Economics, Tripura University and expert in agricultural economics, tribal economics and rural development.

‘In Rajasthan alone, wages worth more than Rs 700 crore remain unpaid’

Mukesh Goswami, associated with MGNREGA Sangharsh Morcha from Rajasthan, working at the national level for the rights of workers, told Gaon Connection over the phone: “In Rajasthan alone, wages worth more than Rs 700 crore remained unpaid from last year with more than Rs 1,200 crore to be paid for the material. The labourers could not be paid since October 10. Such is the state of the government’s processes in MGNREGA.”

“On our part, letters were written to chief minister Ashok Gehlot for payment of dues several times. These letters were even sent out to the Union ministers, yet nothing has been done so far,” he added. 

Like Rajasthan, MGNREGA workers in Andhra Pradesh have not been able to get paid since November 21. The overall pending payment of MGNREGA wages in the month of August was Rs 865 crore across 13 districts of Andhra Pradesh, which was the highest pending payment in the last five years.

The central government is not able to pay MGNREGA workers in time

Working as a MGNREGA researcher in the state, Chakadhar Buddha informed Gaon Connection over the phone: “The central government is not able to pay the labourers in the state. In the year 2017 also, the pending payment of MGNREGA workers in Andhra Pradesh had touched Rs 1,700 crore. Then, due to the labour protests, the state government took the initiative and paid the labourers, but then too, the central government had objected to it. Even today, the central government is not able to pay the labour in time.”

He added: “The big thing is that the central government is not paying one rupee more to the labourers for delaying their wages beyond 15 days and even after months of pending payments, MGNREGA workers get wages only at the fixed rate of Rs 211 in the state. In Andhra Pradesh, a large part of the payment of labourers is still due.”

Apart from this, the Yogi Adityanath government of the largest state of the country, Uttar Pradesh, took a major decision towards the interests of MGNREGA workers in a cabinet meeting on December 24, on delay in payments and other issues of MGNREGA workers. 

UP government’s delayed action

The Yogi government has ordered recovery of interest from the concerned authorities for non-payment to labourers in 15 days under MGNREGA. In spite of this, payment of MGNREGA workers is pending in Uttar Pradesh since December 13. 

“There were some difficulties which have been sorted out. Now, in UP, there are quick payments under MGNREGA and we have 100 per cent money for raw material,” said Rajendra Pratap Singh alias Moti Singh, Minister of Rural Development, UP.”

While the budget for MGNREGA is not released to the states in time, speaking to Gaon Connection over the phone, Jayati Ghosh, professor of economics at Jawaharlal Nehru University in Delhi and renowned economist in rural affairs, said: “All tax collections have decreased after the GST and recession in the country. But the central government should, at least, ensure that the states are allotted funds under the MGNREGA budget following the rules. Many states have written to the PM and the Finance Minister to release the pending budgetary funds.”

She said: “When the slowdown in the country has disturbed the economy, MGNREGA is very much needed to provide maximum employment in rural areas, while the central government had not taken note of it in time,” adding: “There is no better option than MGNREGA to strengthen the economy at the rural level so there is a need to keep MGNREGA flushed with budgetary funds.”

Payments due in Haryana since November 26

In Haryana also, MGNREGA workers face difficulty due to the non-payment of wages in time. As per the MGNREGA website, payment has not been received in the state since November 26.

“For the past two months, we have not been given our wages. We have worked in November, for which we have not received anything so far. When we ask the officers, they reply that the money has not yet come, call the toll-free helpline number, the money will come sooner, the money will be paid in a couple of days — all these are mere excuses that they make. We are poor, at least we should get wages in time,” rued MGNREGA worker Joginder Singh from Dand Gram Panchayat in Kaithal district of Haryana. 

There are 277 villages in seven blocks of the same Kaithal district of Haryana. Many villages are dependent for employment on rural MGNREGA.

The Haryana MGNREGA Workers Union’s general secretary, state, Phool Singh told Gaon Connection: “Firstly, the wages are delayed by two months — the labourers who have worked in November, they have not got wages in their accounts so far. The second big thing is that those who seek work under MGNREGA and if the administration is not able to give them work, there is also a provision for giving unemployment allowance, but MGNREGA is in such a bad state that one may as well forget about getting unemployment allowance.”

The budget of Rs 60,000 crore in the country is very low

“The country got a budget of Rs 60,000 crore last year for MGNREGA, which is very low because the budget money gets completely exhausted three months ahead of its required duration. The labourers do not get even their wages and in case of the delayed payment they do not get extra money,” said Phool Singh.

In Andhra Pradesh, MGNREGA researcher Chakadhar Buddha also acknowledged the passing of a low budget for MGNREGA and supports the recommendation of the Ministry of Rural Development to give additional Rs 20,000 crore for MGNREGA in this budget.

“Last year, the budget increased by just Rs 5,000 crore,” says Chakadhar. “Then, a budget of Rs 60,000 crore was passed but for the entire country. This much MGNREGA fund is grossly inadequate. Many trade unions have also proposed to the government to approve a budget of at least Rs 90,000 crore under MGNREGA as this is the biggest scheme of employment guarantee in the rural economy. It is to be noted that just the two states of Andhra Pradesh and Telangana, command a minimum of Rs 10,000 crore from the MGNREGA budget,” he added.

Workers in Karnataka not paid since November 18

Like Haryana, the labour in Karnataka also complained of non-payment of wages in time. According to the MGNREGA website, the labourers have not been able to get paid since November 18 in Karnataka. The Karnataka government is awaiting pending payment under MGNREGA of about Rs 2,784 crore from the Centre. 

“Just in January, the state government has released funds for payment of about Rs 800 crore in MGNREGA,” said Swarn Bhatt, who is associated with MGNREGA Sangharsh Morcha in Karnataka. “But still about Rs 2,000 crore of wages are outstanding. The big thing is that the demand for work in MGNREGA is always increasing in this state which faces simultaneous drought and flood situations frequently. So, it is imperative that the Centre increase the budget so that the workers get timely payment.”

Dr Paromita, an expert at agricultural economics, tribal economics and rural development, said: “MGNREGA is a huge scheme for employment in rural areas and last year’s Rs 60,000 crore is not enough for such scheme. A minimum of an additional 20% budget needs to be provided for the timely payments to the worker besides employment.”