NEW DELHI, March 19: The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), launched in 2005, continues to play a crucial role in providing livelihood security to rural households across India. Over the past decade, the scheme has witnessed significant expansion, with a focus on enhancing transparency, incorporating technological reforms, and ensuring inclusive participation. The Ministry of Rural Development reports that MGNREGA has made substantial strides, with a notable increase in employment generation and improved payment systems, reflecting the government’s commitment to strengthening rural welfare.
MGNREGA guarantees a minimum of 100 days of wage employment annually to adult members of rural households willing to engage in unskilled manual labor. The scheme has benefitted from consistent budgetary increases, with the allocation for the current financial year 2024-25 reaching an all-time high of ₹86,000 crore, compared to ₹11,300 crore in the financial year 2006-07. This growth underscores the government’s ongoing commitment to addressing rural livelihood security.
The enhanced budgetary support is reflected in the program’s performance. Between FY 2006-07 and FY 2013-14, a total of 1,660 crore persondays of employment were generated. However, from FY 2014-15 to FY 2024-25, the number surged to 3,029 crore persondays, marking an impressive 82% increase in employment generation. Over the past decade, the financial outlay for MGNREGA has also seen a substantial rise, with ₹7,81,302 crore being released compared to ₹2,13,220 crore in the previous decade. This has led to the creation of 8.07 crore durable rural assets, an increase from 1.53 crore assets in the earlier period, with geotagged rural assets increasing by over 526%.
The scheme’s focus on empowering women has also been successful, with female participation rising from 48% in FY 2013-14 to over 58% in the current financial year. This reflects ongoing efforts to enhance gender equality and inclusivity within rural communities. Additionally, MGNREGA now permits 266 categories of permissible works, of which 150 relate to agriculture and allied activities, 58 focus on natural resource management (NRM), and 58 are related to rural infrastructure development. The scheme’s water conservation initiatives, including check dams, farm ponds, irrigation wells, and community ponds, have contributed significantly to reducing water-stressed rural blocks from 2,264 in the previous decade to 1,456, marking a 35% decrease.
The integration of technology has played a vital role in improving the scheme’s efficiency. Aadhaar-based payment systems (ABPS) and the National Mobile Monitoring System (NMMS) have been instrumental in ensuring better transparency and accountability. As of now, Aadhaar seeding has been completed for 99.49% of active MGNREGA workers (13.45 crore individuals), a significant increase from 76 lakh workers in 2014. The NMMS has introduced real-time electronic attendance, preventing fake entries and enhancing oversight. Additionally, 100% of wage payments are now made electronically, a major leap from just 37% in 2013, making MGNREGA the largest Direct Benefit Transfer (DBT) scheme in India.
