Average income of MGNREGA workers doubled amid COVID-19 lockdown in April-July: CRISIL report

As per the report, the average payday wage has been increased by 12% during the period under review.

Created On: Aug 26, 2020 18:56 IST
MGNREGA workers income increased during lockdown
MGNREGA workers income increased during lockdown

As per the CRISIL (Credit Rating Information Services of India Limited) report, the average income of MGNREGA workers has doubled during the government- imposed Coronavirus lockdown.

The report mentioned that the average income per month for the unskilled workers under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has nearly doubled to around Rs. 1000 per month in the first four months of the fiscal year 2020-2021.

Under the government implemented the MGNREGA scheme, the April-July period of the current fiscal period has witnessed 46% growth in the work execution (in terms of person-days).

CRISIL report on MGNREGA: Key Highlights

As per the report, the average payday wage has been increased by 12% during the period under review.

The primary reason for the government’s thrust on MGNREGA was the ongoing COVID-19 pandemic, which had pushed migrant workers back into their villages.

The push to the scheme has been higher in Uttar Pradesh, Haryana, West Bengal, Bihar, Gujarat, and Odisha, where the work allocation has increased more than 50% in the first four months.

The central government had allocated Rs. 61,500 crores for this scheme under union budget 2020-21. The allocation was later increased by Rs. 40,000 crores amid the COVID-19 pandemic to support the rural economy.

According to the report, even after considering the revised allocation, more than 50% of the funds have been spent in the first four months of the current fiscal.

About MGNREGA:

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme has the mandate of providing at least 100 days of the wage employment in a financial year to every rural household whose adult members opt for unskilled manual work. The scheme has been a key mechanism of providing employment to the rural workforce.

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