The demand during the month has been the highest in any April since compilation of the data started in 2013, suggesting the pressure on hinterlands, after several states resorted to lockdowns to control Covid-19, triggering a reverse migration of labourers once again.
The number of people demanding work under the scheme rose to 3.66 crore compared with 2 crore in April 2020, as per the data from the rural development ministry.
A top government official told ET that the rural development ministry is constantly monitoring the situation. “MGNREGA is a demand-driven scheme and funds would be made available as and when required,” the official said.
The Centre has allocated Rs 73,000 crore to the scheme in 2021-22, which is 34% less than the Rs 1.11 lakh crore spent last fiscal year when the annual allocation was enhanced by Rs 40,000 crore to meet a surge in demand.
The average demand for work by rural households under the scheme stands at 1.6 crore in April over the last eight years, with April 2020 being one of the lowest as work was partially suspended last year due to nationwide lockdown. The average demand by individuals or people in April since 2013 is 2.39 crore.
Experts feel the surge in demand for work under MGNREGA is both from rural as well as urban workers. “While rural incomes have dropped significantly because of a dip in trade of farm produce, urban workers are migrating to rural homes to seek work under the scheme because of a slowdown of economic activity all across India, including in smaller towns,” said KR Shyam Sundar, a labour expert and professor at XLRI.
According to Shyam Sundar, the next quarter would be very critical and one may see erratic incomes, a surge in unemployment rates and a drop in labour force participation rates in the country.
New Delhi: Demand for work by households under the rural employment guarantee scheme increased by 89% to 2.54 crore households in April so far, against 1.34 crore a year earlier.
The demand during the month has been the highest in any April since compilation of the data started in 2013, suggesting the pressure on hinterlands, after several states resorted to lockdowns to control Covid-19, triggering a reverse migration of labourers once again.
The number of people demanding work under the scheme rose to 3.66 crore compared with 2 crore in April 2020, as per the data from the rural development ministry.
A top government official told ET that the rural development ministry is constantly monitoring the situation. “MGNREGA is a demand-driven scheme and funds would be made available as and when required,” the official said.
The Centre has allocated Rs 73,000 crore to the scheme in 2021-22, which is 34% less than the Rs 1.11 lakh crore spent last fiscal year when the annual allocation was enhanced by Rs 40,000 crore to meet a surge in demand.
The average demand for work by rural households under the scheme stands at 1.6 crore in April over the last eight years, with April 2020 being one of the lowest as work was partially suspended last year due to nationwide lockdown. The average demand by individuals or people in April since 2013 is 2.39 crore.
Experts feel the surge in demand for work under MGNREGA is both from rural as well as urban workers. “While rural incomes have dropped significantly because of a dip in trade of farm produce, urban workers are migrating to rural homes to seek work under the scheme because of a slowdown of economic activity all across India, including in smaller towns,” said KR Shyam Sundar, a labour expert and professor at XLRI.
According to Shyam Sundar, the next quarter would be very critical and one may see erratic incomes, a surge in unemployment rates and a drop in labour force participation rates in the country.