Despite allocating an additional around Rs 22,039 crore for MGNREGA, a hefty sum of around Rs 21,000 crore could remain pending by the end of this financial year because of heightened expenditure, Peoples' Action for Employment Guarantee (PAEG) said today.
The Peoples' Action for Employment Guarantee or PAEG is a group of activists, academics and members of peoples' organizations that came together to advocate for the NREGA in 2004.
“On average, over the past 5 years, 20 per cent of the budget has gone into clearing the arrears of previous years. The unpaid dues this year are already at Rs 12,494 crore. Assuming the expenditure trend so far in this FY continues, we estimate that over Rs 21,000 crore would be pending at the end of FY 2021-22,” PAEG said.
It said for the next financial year starting from April 1, 2022, a minimum sum of Rs 2.64 trillion will be required to provide a minimum legally guaranteed 100 days of work.
“This is a conservative estimate that considers only households that were employed this year,” it said. The estimated budget requirement was arrived at by taking Rs 269 as the wage rate.
The budget requirement will go down to Rs 2.15 trillion if 80 days of work is provided per household and so on.
In the current financial year, PAEG said as per their estimates, the Centre took longer than the stipulated seven-day period to process 50.2 per cent of the wages although the exact extent of the delay was not known.
“Currently (as on January 24), 13 per cent of transactions are pending, amounting to more than Rs. 7,047 crore,” PAEG said.
Not paying wages on time is akin to forced labour and violates several fundamental rights of crores of workers, it said adding that only 1.69 per cent of payable delayed wage compensation has been paid this year.
PAEG further said that in FY22 despite persistent need for work, the government allocated only Rs 73,000 crore, 26 per cent of which corresponded to previous years’ dues.
As a result of which within the first half of FY 2021-22, NREGA coffers had become empty. And, so far, less than 5 per cent of households employed have completed 100 days of work in the current FY.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU