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MGNREGA: Why dignity of work matters more than doles in rural welfare

28 Jan 2026
2 min

Concerns Over Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill

Abhijit V Banerjee has expressed concerns regarding the declining share of central funding, which could disproportionately affect poorer states. This concern is shared by others who emphasize the importance of dignity in wages provided by MGNREGA.

Principles and Impact of MGNREGA

  • Dignity in Wages: Unlike cash transfers, MGNREGA wages are earned, which emphasizes dignity and participation. 
  • Inclusivity: The Act includes elderly workers and persons with disabilities by assigning them roles in record maintenance, water provision, and childcare support, moving them from dependence to participation. 
  • Economic Stability: Income from MGNREGA has improved education, healthcare, nutrition, and household stability, supported local markets, and served as an economic buffer during crises such as droughts and COVID-19. 

Creation of Public Assets

MGNREGA has contributed to durable public infrastructure, such as flood-protection structures, irrigation wells, and rural roads, enhancing agricultural stability and community ownership through a bottom-up planning process.

Women's Economic Participation

  • Women make up a significant share of the workforce, often surpassing the statutory minimum, challenging gender-based wage discrimination.
  • The provision of creches at worksites reduces barriers for mothers, enabling their participation in paid work.
  • Increased labor bargaining power and fairer compensation for women due to wage parity provisions.

Social Cohesion and Employment Guarantee

  • MGNREGA promotes social interaction across caste and religion, contributing to social cohesion.
  • The demand-driven nature of the program supports those excluded from regular employment and reduces distress migration.

Risks of the VB-G RAM G Bill

  • The Bill could dilute MGNREGA's demand-driven right to work, replacing it with a centrally controlled allocation model.
  • Shifting fiscal responsibility to states could reduce work availability and delay payments, affecting poorer populations.
  • Provision suspensions during peak agricultural seasons may deny employment to marginalized groups who need it most.
  • Decentralized planning could be weakened, eroding community voice and local autonomy.

Challenges and Recommendations

While MGNREGA is not without flaws and requires better funding and implementation safeguards, weakening its legal and decentralized structure is not the solution to these challenges.

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Distress Migration

Distress migration refers to the forced or involuntary movement of people from their place of origin due to severe economic hardship, environmental degradation, or social instability. In the context of agriculture, it often occurs when farming becomes unsustainable, leading to loss of livelihoods.

Decentralized Planning

A process within MGNREGA where planning for public asset creation and project implementation is driven from the grassroots level, involving community participation and local autonomy.

Demand-Driven Nature (of MGNREGA)

The principle that employment under MGNREGA is guaranteed on demand by eligible rural households, rather than being based on pre-allocated quotas, ensuring that work is available when needed.

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