“Increase in demand for work and subsequent work generation in the last fiscal compared to the pre-pandemic year clearly shows stress both in the urban and rural labour markets,” said labour economist KR Shyam Sundar.
Data from the rural development ministry’s website showed 253.8 million households got work under the scheme in 2021-22 as on March 31, compared to 273.2 million in 2020-21. This was much higher than 185.8 million in 2019-20, the pre-pandemic year.
As per the data, person days’ work generated in the just concluded financial year stood at 35.73 billion compared to 38.91 billion in 2020-21, a dip of 8.16%. This was, however, 35.36% higher than 26.39 billion person days generated in 2019-20.
Household demand for work under the scheme in the last financial year was 17.3% lower at 273.3 million compared to 330.5 million in the preceding year but was 21.5% higher than in 2019-20, when 224.9 million households demanded work.
Individual demand under the scheme, though 17.5% lower in 2021-22 than in 2020-21, was 22.5% higher than in 2019-20. Individuals demanding work under the scheme stood at 368 million in 2021-22, 446.4 million in 2020-21 and 300.4 million in 2019-20.
The government guarantees 100 days of paid employment under MGNREGA to rural households every year.
The current trend indicates a higher outgo under the scheme, which is demand-driven and fully funded by the Centre. Total expenditure under the scheme stood at ₹1.06 lakh crore in 2021-22, as against ₹1.11 lakh crore in 2020-21 and ₹68, 265.97 crore in 2019-20.
The government, however, retained the budgetary allocation to MGNREGA for 2022-23 at ₹73,000 crore, the same as budget estimates for 2021-22, much lower than the enhanced allocation of ₹98,000 crore in the revised estimates for the year.
“Barring the pandemic year, the government has maintained a conservative approach towards MGNREGA, notwithstanding high demand for work under the scheme and generation of jobs,” said Sundar.
Finance minister Nirmala Sitharaman has indicated that the government will provide funds, if the need arises.
