In order to provide employment for migrants returning from urban to rural areas, on Sunday the central government allocated an additional 40,000 crore to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for the period 2020-21, resulting in an allocation of Rs. 1,015 trillion for this year, of which 11,500 crore will be spent on clearing the land until last year’s contributions have been received.
Excluding unpaid contributions, the cost of this scheme is estimated at Rs. 90.000.
In the EU budget for 2020-21 approximately R 61 500 has been allocated to MGNREGS. The government estimates that about 23,119 Croatian rupees, or nearly 38 percent, have been issued by the Centre for the States.
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In addition to the budget increase, EU Finance Minister Nirmala Sitaraman has indicated that the work of the MGNREGS will continue during the monsoon months to meet the needs of returning migrants.
The allocation of additional resources could also contribute to improving work within the system, which suffered a major setback in April and May, partly as a result of the blockade and the closure of several sites.
The number of jobs created under the MGNREGS has been reduced to a minimum of only 116.5 million man-days in April 2020-21, compared to 273.96 million in April 2019-29, a reduction of almost 58%.
The additional allocation yields almost 300 crores for the period 2020-21, almost 7.04% more than the initial estimate of 280.26 crores for the period 2020-21. This means that, depending on demand, the programme could create an average of around 25 million jobs.
From the age of 16. In May, the MGNREGA created around 53 million jobs by 2020, while in 2019, during the whole month of May, around 369.53 million jobs were created.
The estimated average cost per person per day under this programme this year is Rs 296.34, which means revised costs of approximately Rs 89,000.
To date, according to the MGNREGA website, the central government has allocated more than Rs 23,000 million to the programme and has spent more than Rs 11,500 million, with the remainder still on the balance sheet.
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About Rs. 11,500 of what was announced in this year’s budget will be used to repay last year’s debts. The extra Rs 40,000 announced today is a good start, but the government needs to work for more, said Reetika Khera, professor at the Indian Institute of Management in Ahmedabad.
She said the announcement of continued work during the monsoon rains was very important because a monsoon is a season of famine when people’s food reserves are depleted. MGNREGA’s work starts during the monsoon season, when the workers move to agriculture.
Mr Khera said that the allocation of additional resources should be combined with the simplification of MGNREGS to ensure that people get jobs easily and on time.
Rajendran Narayanan, an associate professor at Azim Premji University in Bengaluru, said it’s a good start, but a lot remains to be done.
This is the first step, but much remains to be done, and the way in which labour demand is reduced must be reduced in the next two to three months, Narayanan said in an interview with Business Standard.
Meanwhile, CARE estimates that Rs. 40,000 could potentially cover 20 million migrants who could be employed for 100 days, provided the projects are implemented.