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    MGNREGA may get linked with CPI-R

    Synopsis

    Ministry of rural development currently revises the unskilled wage rate under the Mahatma Gandhi National Rural Employment Guarantee Scheme based on consumer price index for agricultural labour (CPI-AL) every year for all states/UTs. Besides, the wages are calculated using December month index only.

    Mahatma Gandhi NREGS is a demand driven wage employment programme. It provides livelihood security for the rural households when no better employment opportunity is available.
    Wages under the rural employment guarantee scheme could soon be linked to consumer price index-rural (CPI-R) and would be calculated based on the annual average, rural development minister Narendra Singh Tomar said in a written reply in Rajya Sabha on Friday.

    Tomar said a committee constituted to study inter-alia the appropriate index for revising Mahatma Gandhi NREGA wages has recommended using consumer price index-rural instead of the existing consumer price index for agricultural labour (CPI-AL) for revising Mahatma Gandhi NREGA wage every year.

    According to Tomar, the committee has also recommended use of annual average instead of the existing practice of using December month index only.

    “The recommendations of the committee are under examination in consultation with other ministries including the ministry of finance,” Tomar said.

    Ministry of rural development revises the unskilled wage rate under the Mahatma Gandhi National Rural Employment Guarantee Scheme based on consumer price index for agricultural labour (CPI-AL) every year for all states/UTs. Besides, the wages are calculated using December month index only.

    Mahatma Gandhi NREGS is a demand driven wage employment programme. It provides livelihood security for the rural households when no better employment opportunity is available.

    The demand for work is influenced by various factors such as rain-fall, availability of alternative and remunerative employment opportunities outside Mahatma Gandhi NREGS.

    An additional 50 days of wage employment is provided over and above 100 days in the notified drought affected areas or natural calamity areas in the country on recommendation of the ministry of agriculture and farmers welfare.

    In the current financial year, till November 11, 2019, the central government has already released Rs 52,845.74 crore, or nearly 88% of the year’s allocation, for Mgnrega.

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