Half full, half empty: 10 years of NREGA

 The fruits of a people’s movement and the world’s largest anti-poverty public works, the National Rural Employment Guarantee Act (NREGA) last year provided employment to 22 per cent of all rural homes.

At its peak five years ago, it was a lifeline for 5.5 crore, or one in every three rural homes.

But it has yet to expand to its full potential. Up to 70 per cent of interested poor households did not receive any NREGA work between 2004-05 and 2011-12, reports the India Human Development Survey 2 (IHDS2).

Unemployment allowance, stipulated in the law, has also rarely been paid as a substitute. Nevertheless, for recipient families, 32% of their poverty decline comes from NREGA alone, according to IHDS2.

Why NREGA is currently not an effective drought-relief measure

Under the law, promulgated in 2005, each household is guaranteed 100 days of work every year. But, on average, each NREGA household received only 45 days of work over the last decade–less than half the guarantee.

The lowest average was last year: 38 days. Uttar Pradesh and West Bengal clocked in even less.

So, it is ironic that recently the Central government has expanded the guarantee to 150 days of work in 14 drought-affected states. Odisha further increased the cap to 200 days.

But this does not work as a drought-relief measure, as only 4 per cent of employed households hit the 100-day mark last year. At its peak, too, only 14 per cent have ever received 100 days of work. Worse, the total nationwide person-days–a measure of NREGA employment - almost halved in 2014-15 (14,900 crore), compared to its peak five years ago (28,400 crore).

The law also stipulates that wages are to be paid within 15 days. Last year, 72 per cent of wages were delayed. This year, no more than 45 per cent of wages have been paid on time. In the midst of a drought, villagers who survive hand-to-mouth cannot afford to wait. Compensation for delayed payment is also rare.

In several states, such as Kerala, Andhra Pradesh, Karnataka and Rajasthan, NREGA wages are lower than the minimum wages for unskilled agricultural work, which makes it difficult to attract workers, especially the youth, who often prefer to migrate to urban areas. Yet, this safety net has bolstered their bargaining power even on distant shores, as scores of Bihari migrants will testify.

NREGA especially helps women, dalits and tribals

“Earlier, we had never seen Rs 500 notes; now we have more than Rs 7,000 to Rs 8,000 as our bank balance,” Sunil Munda, an adivasi from Sanramlai village in eastern Odisha recounted six years ago.

“Now, if we have malaria, we can take an auto and go to the hospital for treatment. Earlier, if herbs didn’t work, we knew we would be dead. We hadn’t seen the doors of the hospital.”

On a more positive front, 40 per cent of households employed under the law are impoverished dalits and adivasis, even without any explicit targeting. The IDHS2 attributes 38 per cent and 28 per cent of reduction in poverty in employed dalit and adivasi (tribal) homes, respectively, to NREGA alone.