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MGNREGA_SAMEEKSHA

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Income and Livelihood Security 17<br />

A study conducted in Karnataka in 2010–11, shows<br />

that the multiplier effects of expenditure from<br />

<strong>MGNREGA</strong> are quite significant, ranging from 3.1 in<br />

the northwest region to 3.6 in the Malnad and coastal<br />

districts of the State. The effect of the multiplier<br />

on the rural economy would be influenced by how<br />

much of the additional purchasing power generated<br />

from a rural employment scheme is spent on items<br />

produced in the rural economy. The study found that<br />

a greater proportion of the income, from 48 per cent<br />

to 66 per cent for men and women, generated from<br />

<strong>MGNREGA</strong> tends to be spent on the rural economy. 51<br />

The multiplier and accelerator impact of the Scheme<br />

is an issue that merits much deeper research.<br />

51<br />

N. Pani and C. Iyer, ‘Evaluation of the Impact of Processes in the Mahatma Gandhi National Rural Employment Guarantee<br />

Scheme in Karnataka’, Bangalore: National Institute of Advanced Studies (NIAS), 2011.

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