How does chronic underfunding of schemes like MGNREGA affect rural employment and social stability in India?

MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) is a key social welfare scheme aimed at providing wage employment and strengthening livelihood security in rural India. Chronic underfunding of such schemes can have significant consequences on rural employment and the overall social fabric.

• Reduced Employment Opportunities: Insufficient funds lead to fewer workdays being provided, directly reducing the number of rural households that can benefit from guaranteed wage employment.
• Delayed Payments: Underfunding often results in delayed wage payments to workers, discouraging participation and eroding trust in the scheme.
• Increased Rural Distress: With less work available, rural families may face greater economic hardship, pushing them towards distress migration to urban areas in search of livelihood.
• Weakening Social Safety Net: MGNREGA acts as a buffer during agricultural off-seasons and times of crisis (like droughts or pandemics). Underfunding weakens this safety net, making rural populations more vulnerable to shocks.
• Gender and Vulnerable Groups Impact: Women and marginalized communities rely heavily on MGNREGA for income. Underfunding disproportionately affects their economic independence and social empowerment.
• Hampered Rural Development: MGNREGA projects also contribute to rural infrastructure and natural resource management. Chronic underfunding leads to incomplete or poor-quality assets, affecting long-term rural development.
• Loss of Faith in Welfare Policies: Repeated underfunding can undermine public confidence in social welfare schemes, making people less likely to participate or depend on government support in the future.