Budget for NREGA not to be reduced

poorest citizens. In this regard, one study82 recommended that a direct cash transfer of a minimum of 3000 rupees per month to be distributed through Jan Dhan accounts. According to another study, the direct transfer amount to be as high as Rs 7,500 to every Jan Dhan account.83

The pandemic and its consequences in economy has shown that heavy dependence on MGNREGA for employment in the country and the government needed to push the scheme by taking a number of measure. However, experts say that ‘it was disappointing that the Government of India had ignored the current rural employment distress even though there was a need to maximise the spending in MGNREGA for enhancing rural demand’.84 Union Finance Minister Nirmala Sitharaman’s Budget 2021-22 allocates Rs 73,000 crore for MGNREGA, which is 34.52 per cent below the Revised Estimate of Rs 111,500 crore for 202021 (that is, Rs 38,500 crore less over last year’s revised estimates). This reduced provision will cover only 2.7-2.8 billion person days for next year, against the present total number of person days of 3.4 billion.85 That means, the scope of employment will be limited and will result in indefinite delays in wage payments in the coming year. The massive underestimation in the budget allocation will only result in distress in vulnerable households, even in a situation of continuing high demand under the scheme at the height of the novel coronavirus disease (COVID-19) pandemic.

This under investment had happened every year in the last few years, leading to huge wage arrears. NREGA is supposed to be a demand-driven programme with an open-ended budget, Government should ensure that the funds never dry up and ensure more funds to be allocated in this scheme keeping pace with the demand for work. Nothing in the Act authorises the government to impose a budget cap.

Involving Community Based Organizations/Non Government Organizations in reaching economically vulnerable

With the sudden announcement of lock down and ‘stay at home’ direction of Government of India, it was very important to quickly address the problems faced by the marginalised sections of population and save the lives of hardest hit section who suddenly lost income. As

82 Shruti Rajagopalan; Alexander Tabarrok (2020); Pandemic Policy in Developing Countries: Recommendations for India. 83 T M Thomas Isaac, MAY 19 2020; “Package of numbers, not relief” 84 Debamalya Nandy, Member, NREGA Sangharsh Morcha told Down To Earth (DTE); “Is Union Budget 2021-22 MGNREGA allocation enough to alleviate rural distress” 85 “Is Union Budget 2021-22 MGNREGA allocation enough to alleviate rural distress”; 01 February 2021; (webhttps://www.downtoearth.org.in/news/governance/is-union-budget-2021-22-mgnrega-allocation-enough-to-alleviaterural-distress-75292)

evident in different studies and reports, non-government organizations and community based organizations jumped in to help the people in need by either distributing dry ration, feeding with hot cooked meal or arranging shelters. 84.26 lakh people have been provided meals across the country during the lockdown, of which nearly 37% people were fed by NGOs. In Gujarat, NGOs fed 93% of the people who were provided meals, while in Andhra the figure was 92%.86 In a press release the Government of India recognized their role saying, "NGOs and charitable organisations are playing an important role in providing cooked food to thousands of poor and needy people during this time of nationwide lockdown." The NITI Aayog reaching out to the CSOs and seeking their support to assist the government in the fight against COVID-19 is certainly a welcome step. However, few states did not allow NGOs to distribute food or ration to the needy during the lock down period. For example, Government of Bihar did not allow civil society groups/NGOs to distribute any relief materials including food. To confirm this a letter (dated April 1st , 2020) was issued by the District Collector of Darbhanga district, which stated that i) the Chief Minister Office had announced that no NGO will be allowed to work on COVID19 relief; ii) that all relief has to be channelled through the government and iii) that the permits issued to local NGOs for food distribution will be revoked.

Ideally, in order to save live and revive economy, public consultations need to be institutionalised with strong collaboration by central and state governments with local CBOs/NGOs. In such collaboration, NGOs can play vital role by collecting funds for government and distributing essentials to affected people; creating mass awareness volunteering door-to-door campaign; participating in formulating health policies; conducting health camp; preventing panic-buying of essential commodities and many others.

86 Coronavirus in India: In 13 states, NGOs fed more people than govt did during lockdown; Mukesh Rawat; New Delhi April 9, 2020