Move to tweak job scheme will hit rural economy: KTR

Telangana Minister for Panchayat Raj and Rural Development K.T. Rama Rao has opposed the Centre’s proposal to downsize Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) stating that it will have far-reaching consequences on rural economy.

Speaking at the regional conference of Rural Development Ministers on the implementation of MGNREGS convened by the Union Rural Development Ministry at Kovalam in Kerala on Tuesday, he said that Telangana Government was highly concerned about the reports of downsizing the scheme that had provided a real voice and choice to the poor and vulnerable sections of the society.

Almost 95 per cent of households in rural areas were dependent on the scheme directly or indirectly for wage employment and the any effort to limit it would seriously upset their earnings, Mr. Rama Rao said adding that Telangana Legislature had adopted a resolution seeking continuation of the scheme without imposing any restrictions. Instead there was need to improve the implementation of MGNREGS with innovations and learning experiences from different States, he suggested.

He stated that MGNREGS had made a significant dent in the poverty and vulnerability in rural areas. In Telangana, the scheme was being implemented in nine rural districts covering 443 mandals. About 100 crore person days were generated with an expenditure of Rs.9,800 crore for wage employment since inception of the scheme, he said.

About 25 lakh households, 45 per cent of the households enrolled for the scheme, were being provided wage employment every year and about 95 per cent of the beneficiaries were from the SC, ST, BC communities and most vulnerable groups such as Chenchu tribe, Mr. Rama Rao noted.

Explaining the major impacts of MGNREGS, the Minister said it had increased the average daily wages from meagre Rs.30 to about Rs.150 and reduced distress migration from rural areas by about 44 per cent. Besides, there was increase in the income, savings and credit worthiness of rural households, he said.

There were some challenges such as delay and leakages in disbursement of wages, works without assets, marginal role of panchayat raj institutions (PRIs) and reported negative impact on the agriculture sector in the implementation.