Title Financial Sustainability of MGNREGA- A Long-Term Analysis Shubham .pdf ✅

Research Paper खोईंछा | Khoinchha A Gateway to Cutting-Edge Research and Scholarly Exploration Vol.I, Issue.I | January-June,2023 | pp.1-17 Bi-Annual, Multilingual, Multidisciplinary, Peer-Reviewed E-Research Journal www.khoinchha.in 1 Financial Sustainability of MGNREGA: A Long-Term Analysis * Shubham Kumar Program leader, Aspirational Bharat Collaborative, Piramal Foundation Introduction The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), introduced in 2005, stands as a landmark initiative in India's efforts to address rural poverty and unemployment (Jha, 2019). Enacted with the aim of providing at least 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work, MGNREGA has significantly contributed to livelihood security and social protection in rural areas (Sundaram, 2018). With its focus on empowering marginalized Article Publication Published Online: 30 June 2023 Corresponding Author Shubham Kumar Program leader, Aspirational Bharat Collaborative, Piramal Foundation [email protected] © 2023| Published by Khoinchha. This is an open access article under the CC BY-NC 4.0 licence. Abstract This research article investigates the financial sustainability of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) through a comprehensive long-term analysis. MGNREGA, launched in 2005, is the world's largest employment guarantee scheme aimed at providing livelihood security to rural households. Despite its socio- economic benefits, concerns have been raised regarding its financial sustainability. This study employs a combination of quantitative analysis and qualitative insights to evaluate the fiscal viability of MGNREGA over the years. The findings suggest various factors influencing the program's financial sustainability and propose policy recommendations to enhance its long-term effectiveness. Keywords- MGNREGA, Poverty, Employment, Livelihood, Rural development.
Research Paper खोईंछा | Khoinchha A Gateway to Cutting-Edge Research and Scholarly Exploration Vol.I, Issue.I | January-June,2023 | pp.1-17 Bi-Annual, Multilingual, Multidisciplinary, Peer-Reviewed E-Research Journal www.khoinchha.in 2 communities and ensuring inclusive growth, MGNREGA has emerged as the world's largest and most ambitious social welfare program (Desai & Joshi, 2019). However, despite its laudable objectives and positive impact, concerns persist regarding the financial sustainability of MGNREGA (Debroy, 2017). The program's expenditure has been subject to scrutiny due to fluctuations in budget allocations and challenges in fund management (Mishra, 2016). Given the scale and scope of MGNREGA, ensuring its long-term fiscal viability is crucial to sustaining its socio-economic benefits (Gupta & Gangopadhyay, 2020). Importance of Financial Sustainability Against this backdrop, the research aims to investigate the financial sustainability of MGNREGA through a comprehensive analysis spanning multiple years. The primary objective is to assess the factors influencing the program's financial viability and explore potential strategies for enhancing its long-term effectiveness (Sharma & Sahoo, 2020). By examining expenditure patterns, revenue generation mechanisms, and fiscal management strategies, the study seeks to provide insights into the challenges and opportunities associated with sustaining MGNREGA over time (Rai & Pancholi, 2018). Research Objective and Scope The scope of the research encompasses an examination of budgetary trends, revenue sources, and cost-benefit dynamics within the context of MGNREGA implementation at the national and state levels. Additionally, the study will explore the implications of financial sustainability for rural development policy and practice in India (Roy & Mahendra, 2017). Through empirical analysis and policy recommendations, the research aims to contribute to the ongoing discourse on optimizing the impact of MGNREGA in fostering inclusive and sustainable rural development (Chakravarty, 2019). Literature Review The evolution of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) reflects a transformative journey in India's approach to rural development and social welfare. Enacted in 2005, MGNREGA emerged as a response to the persistent challenges of rural poverty, unemployment, and distress migration (Narayanan & Sharma, 2018). Rooted in the principles of social justice and inclusive growth, the program aimed to provide employment opportunities and livelihood security to vulnerable sections of society (Khera, 2019). Over the years, MGNREGA has undergone several amendments and expansions to enhance its coverage and effectiveness in addressing rural distress (Jain, 2017).
Research Paper खोईंछा | Khoinchha A Gateway to Cutting-Edge Research and Scholarly Exploration Vol.I, Issue.I | January-June,2023 | pp.1-17 Bi-Annual, Multilingual, Multidisciplinary, Peer-Reviewed E-Research Journal www.khoinchha.in 3 A plethora of studies has examined various aspects of MGNREGA, including its evolution, implementation challenges, and socio-economic impacts. Prior research has highlighted the significance of MGNREGA in reducing poverty, enhancing household income, and empowering marginalized communities (Sinha & Gupta, 2016). However, despite its socio- economic benefits, concerns have been raised regarding the program's financial sustainability (Kaur & Sharma, 2020). Several studies have explored the factors influencing the financial sustainability of MGNREGA. One of the key challenges is the volatility in budgetary allocations and delays in fund releases (Khan & Ansari, 2019). Fluctuations in budgetary provisions have implications for timely wage payments and program implementation, thereby affecting the livelihoods of rural households (Bhatia & Drèze, 2017). Moreover, administrative inefficiencies and leakages in the implementation process have contributed to cost escalations and resource mismanagement (Bhattacharya & Jain, 2018). Furthermore, the design and implementation of MGNREGA have been critiqued for their susceptibility to corruption and irregularities (Dreze & Sen, 2013). Leakages in funds and diversion of resources undermine the program's effectiveness and erode public trust in government schemes (Panda & Sharma, 2015). Additionally, the lack of convergence with other rural development initiatives and limited investments in asset creation have hindered the long-term sustainability of MGNREGA (Kumar & Mahajan, 2021). Despite these challenges, MGNREGA has demonstrated resilience and adaptability in responding to evolving socio-economic dynamics. Studies have documented the program's positive impact on reducing distress migration, empowering women, and promoting rural infrastructure development (Rajeev & Kumar, 2020). Moreover, MGNREGA has served as a social safety net during times of economic downturns and natural disasters, providing a crucial source of income for vulnerable households (Kapoor & Sood, 2018). In conclusion, the literature on MGNREGA highlights its evolution as a pioneering social welfare program aimed at alleviating rural poverty and unemployment. While previous studies have underscored the program's socio-economic benefits, concerns remain regarding its financial sustainability. Factors such as budgetary volatility, administrative inefficiencies, and leakages pose challenges to the long-term viability of MGNREGA. Addressing these challenges requires concerted efforts to strengthen fiscal management mechanisms, enhance transparency, and promote convergence with other rural development initiatives. By addressing