Relevance: GS II – Social Welfare; GS III – Inclusive Growth • Source:The Hindu; Ministry of Rural Development, 

1. News

Official data shows that MGNREGA employment has fallen for the second consecutive year. Participation dropped from around 35 million workers (June 2025) to about 13 million (October 2025) — a decline of nearly 60%. The scheme’s allocation remains roughly ₹86,000 crore for FY 2025-26.

  1. MGNREGA and Its Significance
  • Provides 100 days of guaranteed wage employment to rural households.
  • Ensures livelihood protection, boosts rural consumption, and stabilises incomes during drought, migration, or economic shocks.
  • Plays a key role in water conservation, soil works, afforestation, and climate-resilience assets.
  • Supports SDG 1 (No Poverty) and SDG 8 (Decent Work).

3. Reasons for the Fall & Consequences

Reasons for Decline

Consequences for Rural India

Growth in non-farm opportunities and migration to townsLower demand for MGNREGA workdays
Delayed wage payments and digital barriers (e-KYC, apps)Drop in worker participation, especially women & elderly
Budget constraints and procedural tighteningFewer assets created; Gram Sabhas report unmet demand
Normal monsoons improving agricultural activityIncome volatility during lean seasons when fallback weakens

Path Ahead

  • Ensure timely wage payments and simplify digital processes to prevent exclusion.
  • Provide adequate and flexible funding based on state-wise demand.
  • Strengthen climate-resilient works—water harvesting, soil moisture conservation, plantations.
  • Improve social audits, transparency, and grievance redress systems.

Prelims Practice Question

Consider the following statements:

  1. MGNREGA legally guarantees up to 100 days of wage employment to any rural household that demands work.
  2. Wage delay compensation is not provided under the Act.

Which one is correct?
 A. Only 1 B. Only 2 C. Both D. None

Answer: A
 (Statement 2 is incorrect — compensation for delayed wages is a statutory provision.)

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