MGNREGA_SAMEEKSHA

1 Income and Livelihood Security
MGNREGA aims to provide a steady source
of income and livelihood security for
the poor, vulnerable and marginalised.
This chapter reviews the existing
literature on the impact of MGNREGA on poverty
and inclusive growth to assess the extent to which
the Scheme has succeeded in meeting its objectives.
Overall, evidence suggests that MGNREGA does
provide basic income assurance to a large number
of beneficiaries. In FY 2011–12 1 alone, nearly 5
crore households 2 (close to 25 per cent of all rural
households in the country) were provided over 209
crore person-days 3 of work (see Table A).
Many micro-level studies have assessed the impact
of MGNREGA in terms of poverty alleviation and
generation of income opportunities in the future.
However, further research and analysis is required,
both for evaluating the current efforts in terms of
their impact on livelihood and poverty as well as
informing future implementation of the Scheme. The
key inferences and findings from the research studies
are listed below.
Impact on Poverty and Deprivation
MGNREGA has provided around Rs 1,10,700
crore (66 per cent of the total expenditure of
around Rs 1,66,000 crore) as worker wages
from FY 2006 up to FY 2011–12*. Studies note
a positive impact of this transfer on household
income, monthly per capita expenditure,
food security and health of the beneficiaries.
Overall, while there are several indications
of the significant impact of the Scheme, it has
even greater potential in terms of poverty
alleviation at scale, that can be realised.
From FY 2006 up to FY 2011–12*, over 1,10,700
crore (66 per cent of the total expenditure of around
Rs 1,66,000 crore) under MGNREGA has been spent
on worker wages. In FY 2011–12* alone, Rs 24,600
crore of the total expenditure under MGNREGA was
on worker wages. To assess the impact of the Scheme
on poverty and deprivation, studies have used proxy
indicators, including household income and monthly
1
Provisional Data: At the time of the preparation of the report, data entry for states was still open for the year 2011–12.
Henceforth, all instances of Provisional Data have been indicated with an asterisk (*) within the text and footnotes.
2
A household is defined as members of a family related to each other by blood, marriage or adoption, and normally residing
together and sharing meals.
3
Person-day in the context of MGNREGA is defined as one day of work. In other words, one person-day of work entitles a
worker to the MGNREGA notified wage as per the Schedule of Rates (SoRs).