people availed of it in 2020 compared to last year, the shortfall in funds allocated for the scheme is a major worry. 45.6 lakh households that applied for a job card were not issued one this year71 because of the budget constraint. There are also significant state-wise variations in the way MNREGA has performed through the past year. For example, in Jharkhand and Uttar Pradesh, the percentage of households whose demand for MNREGA work was unmet at some point of the year was 25 percent and 23 percent respectively. On the other hand, West Bengal and Rajasthan did better on this front, and the corresponding figures for the two states were 7 percent and 8 percent respectively. Nationwide, 13 percent of households found their demand for work unmet at some point during the year. This situation calls for large-scale opening of NREGA works on a proactive basis. Every village needs at least one major worksite, where a good number of people can work at short notice (with adequate distancing precautions). Given the plight of migrant labour and the long -term effects of corona pandemic on the rural economy, time has also to come to reimagine NREGA as universal basic income guarantee scheme. Linking MGNREGA with direct-cash transfer has the potential to mitigate economic hardship of landless labour, small-marginal farmers, and seasonal migrants in India. Experts72 recommend to consider a return to cash payment of NREGA wages, at least as an option for the duration of the crisis. This would help to ensure timely and reliable payment of wages. As suggested by leading development economist Pranab Bardhan, a modest amount of Rs 16000 per year direct cash transfer to a household of five would be sufficient. According to another expert, transferring half of the last year’s wages of MGNREGS workers as advance into their accounts would also alleviate their suffering from economic crisis.73 In short, with a monthly basic income support combined with 100 days of legally guaranteed rural works, NREGA would help ameliorate the plight of elderly, widowed, and disabled in rural India and also obviate the need for multiple conflicting income support schemes for farmers in rural India.74
Shielding poor by taxing rich Despite resuming of economic activities post lock down, different section of population including informal sector workers as well as many of the middle class workers faced unemployment or loss of wage. Centre for Monitoring Indian Economy data, for instance, finds75 that the proportion of households who said that their finances were worse compared to a year ago has risen to 45% in the first fortnight of April 2020 from 8%-9% in January and
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MNREGA during COVID-19 pandemic: More households got work in 2020, but fund crunch a major concern, finds study; Neerad Pandharipande; December 31, 2020 72 Jean Drèze ; MAY 25, 2020; “The need for a million worksites now”; (web: https://www.thehindu.com/opinion/lead/the-need-for-a-million-worksites-now/article31665949.ece) 73 T M Thomas Isaac, MAY 19 2020; “Package of numbers, not relief” 74 The Times of India; Ashwani Kumar; May 28, 2020; “Reviving and reforming MGNREGA” (web: https://timesofindia.indiatimes.com/blogs/voices/reviving-and-reforming-mgnrega/) 75 Modi’s ‘atmanirbhar’ plan does little to help those worst hit by lockdown; Dipa Sinha; May 19, 2020
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