MGNREGS work demand not directly correlated to rural distress: Economic Survey
MGNREGS work demand does not directly correlate with increased rural distress at a micro-level and data from Financial Year 2024 shows states like Kerala and Tamil Nadu, with relatively lesser poor population, use more funds under the flagship rural employment scheme, according to the Economic Survey. The survey found there is a marked variation in the performance of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) across states.
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Multiple research studies have been conducted to find a definite cause for such unevenness in outcomes but a satisfactory explanation has not been found, said the survey which was presented in Parliament on Monday.
It said while some reports suggest that MGNREGS demand is indicative of rural distress, insights from MGNREGS Data for FY-24 shows that although Tamil Nadu has less than one per cent of the country's poor population, it accounted for nearly 15 per cent of all MGNREGS funds released.
Similarly, Kerala, with only 0.1 per cent of the poor population, used almost 4 per cent of the MGNREGS funds, the survey report showed.
Together, these states generated 51 crore person-days of employment.
In contrast, Bihar and Uttar Pradesh, with about 45 per cent (20 percent and 25 percent respectively) of the poor population, accounted for only 17 per cent (six percent and 11 percent
