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New Delhi, Feb 4 (IANS) Focus on the rural economy in the budget has been waning over the years and in such a scenario a revival of the rural economy would take time, <keyword id="45949" type="General" weightage="100" keywordseo="jm-financial" source="Orion">JM Financial</keyword> said in a report. In the absence of a specific focus on the rural economy in the <keyword id="6360189" type="General" weightage="50" keywordseo="union-budget" source="Orion">Union Budget</keyword> for 2023-24, analysts don't see immediate triggers for revival in the rural economy. Moreover in the absence of specific or enhancement of allocation towards the rural economy, we believe that the rural environment would have to revive on its own. Hence we would view businesses dealing with price sensitive low ticket items as less likely to benefit, JM Financial said. An attempt is made to make the new tax regime more attractive after getting a low response in FY23, however we believe the benefits in the form of tax saving on enhanced no-tax limit (INR 0.2mn) is unlikely to spur demand in a meaningful manner, JM Financial said in a report. Unlike the anticipation by a section of the market, rural focus was missing in the budget announcements. The expectations of a populist budget was linked to 9 state elections in 2023, moreover with FY24 being the last full year budget before the general elections in CY24. However, we believe that the schemes relating to empowerment of women <keyword id="75772" type="General" weightage="50" keywordseo="self-help-groups" source="Orion">Self Help Groups</keyword>, artisans and setting up of digital infra for agriculture and farmer centric solutions would provide opportunities in the rural economy to improve their livelihood, JM Financial said. Moreover, the budgetary allocation towards rural centric schemes like <keyword id="6361863" type="General" weightage="50" keywordseo="mgnrega" source="Orion">MGNREGA</keyword> and PM <keyword id="865803" type="General" weightage="50" keywordseo="gram-sadak-yojana" source="Orion">Gram Sadak Yojana</keyword> has been declining ever since FY22. Even the sentiments as collated by CMIE show a declining trend in the rural economy ever since June '22 whereas the sentiments in the urban economy seem to be holding up well, JM Financial said. In the absence of a specific focus on the rural economy, we don't see immediate triggers for revival in the rural economy, the report said. The latest rabi sowing has been progressing well even on a higher base of last year, except in the case of wheat. Subsidy burden has been the major pain point in India's fiscal, led by rising fertilizer and food prices. Fertilizer subsidy was increased by INR 1.1tn in FY23 over and above the budgeted figures of INR 1.05tn. Allocation towards fertilizer subsidy has been made to the extent of INR 1.75tn in FY24. We believe with easing inflationary pressures, the government could have limited the allocation to INR 1.4tn, as fertilizer prices have moderated by 40% from its peak. However, the geo-political situation is still in a flux and the government's higher allocation seems prudent at this juncture. Food subsidy has been pegged at INR 1.97tn (vs INR 2.9tn FY23RE), as the outlay would be reduced with the discontinuance of the PM Garib Kalyan Yojana. On an overall level, subsidies form 1.2% of GDP vs 1.9% in FY23RE. Past data indicates that the exuberance or otherwise relating to the budget day normalizes within a month in the equity markets. Moreover, a substantial positive performance in Nifty was witnessed in the week following the budget day only during FY16, FY20 and FY21. The personal income tax changes in the Union Budget affect many but the impact is low, Credit Suisse said in a report. The split of salary income by income groups shows that while the number of filings is mostly by low-income groups, the bulk of the taxes come from high income. 56% of the filers belong to the low-income group but they add to just 2% of the tax collected. People earning more than Rs 10mn are less than 1%, but they add to 10% of the tax collected, the report said. Inflows from small savings deposits have shrunk considerably. Small saving deposits for government have been declining, and at the current pace, can be 20% YoY lower for FY23. This may still be marginally better than budgeted, though these flows are generally larger nearer to the year-end. While bank deposit rates have risen considerably, NSSF rates remained low for most of FY23, were raised in Jan-2023. The Centre continues to remain dependent on small savings flows to fund the deficit, Credit Suisse said.

Revival of rural economy to take time in the absence of triggers: JM Financial

MGNREGA, also expanded as Mahatma Gandhi National Rural Employment Guarantee Act is a scheme operated by the Central Government of India by revamping the old scheme and renaming it. The main objective of this scheme is to provide social security by assuring a minimum of 100 days of work per year to the families. To benefit from this scheme, the adult members must be prepared to deliver unskilled labour-intensive work. Background of MGNREGA The government was operating schemes like Jawahar Rozgaar Yojana, Food for Work Programme, and Sampurna Grameen Rozgaar Yojna. Based on the observations from this scheme, the government launched Mahatma Gandhi National Rural Employment Guarantee Act first in the state of Maharashtra in the year 1970. During its launch, the scheme was called as National Rural Employment Guarantee Act (NREGA). The scheme was introduced in the state during the period when Vasant Rao Naik was the chief minister. This act came to the aid of millions of farmer families in the state. The planning commission eventually accepted this scheme and extended throughout the nation. These acts helped the government gather some useful inputs needed to work in the lines of programs like ‘Rural Manpower Programme’ ‘Crash Scheme for Rural Employment’ ‘Drought Prone Area Programme’ and ‘Marginal Farmers and Agricultural Laborers Scheme’. Each of these schemes provided a useful ground for the government to plan newer schemes in an efficient way setting right the drawbacks of the earlier ones. The principal objectives of all these schemes are wage employment, food security, and producing valuable assets. Later renamed as MNREGA, Mahatma Gandhi National Rural Employment Guarantee Act is a significant member in the lines of these schemes. Important <keyword id="8133544" type="UNKNOWN" weightage="20" keywordseo="features-of-mgnrega">features of MGNREGA</keyword> 1. Providing job security to the adult members in families for not less than 100 days in a year. 2. Creating permanent assets like wells, ponds, roads and others for the welfare of the community. 3. Providing employment opportunities to the applicants within a radius of 5 kilometres. 4. Providing minimum wages in order to assure security to families. 5. Providing security to the income of families by assuring unemployment allowances if work is not provided for about 15 days from the date of application. How to enroll in MGNREGA? Application to this job must be given in writing. The application must include the registration number of the job card, date from which the applicant is seeking employment, and the number of days for which the applicant wants the job. The application must give the names of the adult members in the family who are coming forward to do unskilled manual work along with the details like age, gender, and caste. The filled-in applications must be submitted to the Gram Panchayat. For registration under this scheme, an individual can appear personally and make a request. The authorities in the Gram Panchayat will verify the details in the application and decide if the case in the application is genuine and deserving to get the benefit. Once verified, every household will be given a unique registration number.

What is Magnerga and how can one Enroll in the scheme

"FM Sitharaman should try a MGNREGA-like plan for urban unemployed."

<ul><li>Enough foodgrain stock is lying in godowns of state governments which they can lift from Friday onwards for free distribution to 8 crore <keyword id="64839" type="PERSON" weightage="20" keywordseo="Migrants">migrants</keyword> who do not have ration cards to avail such supplies, Union Food Minister <keyword id="973" type="PERSON" weightage="20" keywordseo="Ram-Vilas-Paswan">Ram Vilas Paswan</keyword> said.</li><li>The state-run <keyword id="6354672" type="COMPANY" weightage="20" keywordseo="food-corporation-of-india">Food Corporation of India</keyword> (FCI), which is the government's nodal agency for procurement and distribution of foodgrains, has been directed to make necessary arrangements for this purpose, he said.</li><li>About Rs 3,500 crore will be spent for this intervention by the centre.</li></ul>Enough foodgrain stock is lying in godowns of state governments which they can lift from Friday onwards for free distribution to 8 crore migrants who do not have ration cards to avail such supplies, Union Food Minister Ram Vilas Paswan on Thursday said. Paswan hailed the government's decision to distribute free 5 kg rice or wheat per person and 1 kg chana per family to migrants for the next two months, as part of the second tranche of the economic stimulus package to help those affected due to the COVID-19 lockdown. "There is adequate stock of foodgrains lying with state godowns. Our ministry is fully prepared to supply ration to 8 crore migrants. These additional 10 per cent poor do not have ration cards, but will get the benefit of free dry ration," Paswan told after the announcement. The state-run Food Corporation of India (FCI), which is the government's nodal agency for procurement and distribution of foodgrains, has been directed to make necessary arrangements for this purpose, he said. "Once the order is issued, states can immediately lift from tomorrow the grains from godowns and start distribution to migrants through the Public Distribution System (PDS)," Paswan said. For instance in Bihar, over 14 lakh poor who are not yet covered under the <keyword id="128143" type="COMPANY" weightage="20" keywordseo="National-Food-Security">National Food Security</keyword> Act (NFSA) or any state ration card scheme will benefit, he explained. Likewise across the country, there are around 40 lakh poor whom the states have not yet identified for coverage under the NFSA, the minister said. "They all will be benefited." Paswan also mentioned that it is the responsibility of the state governments now to identify the poor migrants and ensure free supplies reach them. States can send the details of migrant beneficiaries to the central government later, he added. About Rs 3,500 crore will be spent for this intervention by the centre. Currently, the FCI has a foodgrain stock of over 671 lakh tonnes, of which rice is 271 lakh tonnes and wheat 400 lakh tonnes, as per official data. See also: <a href="https://www.businessinsider.in/policy/economy/news/nirmala-sitharaman-says-mnrega-job-seekers-have-surged-in-april/articleshow/75740367.cms">Job seekers under MGNREGA has jumped 50% as migrant workers forced to return home are desperate for livelihood</a> <a href="https://www.businessinsider.in/india/news/from-minimum-wages-for-all-to-social-security-for-gig-workers-these-are-the-broad-outlines-of-upcoming-labour-reforms-in-india/articleshow/75733790.cms">From minimum wages for all to social security for gig workers ⁠— these are the broad outlines of upcoming ‘labour reforms’ in India</a>

India's Food Minister says there is enough grain stock to feed migrants for free for 2 months

<ul><li>The Economic Survey 2018-19 highlights how technology has helped the Indian government plug leaks in the country's '<keyword id="7286241" type="UNKNOWN" weightage="20" keywordseo="food-for-work">food for work</keyword>' programme -- the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).</li><li>It attributes the programs success to the JAM trinity of Jan Dhan, <keyword id="144117" type="ORGANIZATION" weightage="20" keywordseo="AADHAAR">Aadhaar</keyword>, and mobile payments.</li><li>The National Electronic Fund Management System (NeFMS) also also helped the government keep a more accurate account of which workers are on the payroll and if they're actually showing up for work.</li></ul>The origins of ‘food for work’ programs trace back to Kautilya’s Arthashastra — a Indian documents on statecraft, economic policy and military strategy. John Keynes, who popularised the theory, was still a century behind Nawab Asaf-ud-Daula who already had a ‘food for work’ program working in Lucknow when famine struck in 1784. In today’s day and age, India’s Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is using technology to streamline the national ‘food for work’ scheme to bring financial and economic inclusion. The JAM trinity — Jan Dhan, Aadhaar, and mobile payments — has eased the validation of beneficiaries and the process for releasing funds, according to Economic Survey 2018-19. Wages directly to the people Since it’s induction in 2005, the programme was riddled with issues. But, applying Direct Benefit Transfer (DBT) and Aadhaar-linked Payments (ALP), the Indian government has been striving to reduce delays in the payment of wages, curb corruption and political interference, and plug up any leakages in the system. As a workforce programme, MGNREGA’s mandate is to alleviate distress and ensure payments happen in a timely manner. Before DBT, wages were transferred into panchayat bank accounts and most of the workers had to collect their wages from the gram panchayat office. And, in order for DBT to work — the workers needed bank accounts. That’s when the Pradhan Mantri Jan Dhan Yojana (PMJDY) was implemented to bring about universal access to banking facilities. The Economic Survey 2018-19 highlights that before the implementation of ALP and DBT, there used to be an average lag of 90 days before wage payments for recieved. After their implementation, that lag has been cut down one-third from 35% to less than 10%. Culling out the ‘ghosts’ in the system Bringing in <keyword id="7829443" type="UNKNOWN" weightage="20" keywordseo="aadhaar-linked-payments">Aadhaar linked payments</keyword> ensured that the government would not be funding any ‘ghost’ beneficiaries. The National Electronic Fund Management System (NeFMS), implemented in 2016 and currently functional in 24 states, bolsters that effort by providing a real time database of wages being credited into bank or post office accounts by the central government. NREGAsoft, a local language workflow based e-governance system, looks at registration and muster rolls, a form of attendance register signed by workers to check false reporting of numbers. The service isn’t available to the public but does make it easier for the government to keep track of who is employed under the scheme and whether they are actually showing up for work. The government’s also held accountable of its actions with the use of mobile apps like Gram Samvaad Mobile App and JanMnRega were rural workers have direct access to information and can give their own feedback on how the system is working. The supply demand gap Since the government now access to data, the Economic Survey 2018-19 asserts that it will be able to implement MGNREGA more effectively by pushing government officials to provide more jobs in distressed areas. This should help bridge the demand supply gap between jobs available and the enlisted worker by using data provide jobs where there is more demand for them and vice versa. The survey also highlights how the vulnerable sections of the society — women, scheduled class, and scheduled tribes — have increased their participation in the program during times of distress. Going forward, the government wants to expand the number of jobs available to workers under the scheme, upskill the workers it has enlisted, expand the use of JAM, and use digital infrastructure to expand MGNERA beyond wages to also offer micro-insurance, micro-pensions and micro-credit to the underserved sections of society.

Technology plugged the leaks in India’s ₹60,000 crore rural employment guarantee scheme

Today’s top tech news: Aadhar could be a ‘master database’ of Indian citizens, NASA has a fail safe in place in case Artemis goes wrong and Indiamart’s CEO is celebrating the company's IPO

New Delhi, Mar 8 () Rural distress should be addressed through developing infrastructure and pushing demand by increasing pace of fund transfers under PM-Kisan and employment guarantee schemes, according to an industry-banking survey. Banks are currently exercising caution while taking exposure to large enterprises due to apprehensions on asset quality, lower economic growth and sector-specific risks, among others, said the 'FICCI-IBA Bankers' Survey July-December 2019'. A total of 18 banks from public and private sectors and foreign banks participated in the survey. These banks together represent about 50 per cent of the banking industry by asset size. Banks are of the view that rural distress should be addressed through laying emphasis on rural infrastructure development and stimulating demand by increasing the pace of fund transfers under the PM-Kisan and MGNREGA schemes, industry body FICCI said in a release on Sunday. Some of the respondent banks also suggested that the government should undertake structural land and labour reforms while taking measures to increase job creation in the country. A large number of participating bankers have mentioned that addressing the taxation issues by launching a GST 2.0 regime and bringing a direct tax code should be the top priority of the government at this moment, it said. The lenders also recommended an increase in capital flow into micro, small and medium enterprises (MSMEs), which form a crucial part of the economy. They also said an online platform should be developed to help banks accelerate the SME lending process. Their suggestions also include development of creative ways of credit assessment such as using psychometric testing, cash flow estimates or qualitative credit assessment and keeping NPA in the sector under check through reclassification of the Income Recognition and Asset Classification norms for MSMEs. The survey also found that lower proportion of respondent banks reported a decline in non-performing assets (NPAs) as compared to the previous survey. "As compared to the first half of 2019 in which nearly 52 per cent of the respondents had reported a decline in the NPA levels, the proportion of respondent banks citing a reduction in NPAs in the current round of survey has reduced to 39 per cent," it added. The proportion of the banks reporting a rise in NPAs, on the other hand, has shown a slight increase to 28 per cent as against 26 per cent in the preceding survey. Among the key sectors with high level of NPAs were infrastructure, metals, iron and steel, engineering goods and textiles. KPM HRS

Rural distress can be addressed via infra building, demand boost by PM Kisan, MGNREGA: Survey

<ul><li>Despite a record outlay for the <keyword id="6361863" type="UNKNOWN" weightage="20" keywordseo="MGNREGA">MGNREGA</keyword> in 2019-2020, daily workers enrolled in the scheme will reportedly receive the lowest wage hike since its inception in 2006. </li><li>On average, unskilled manual workers will see their <keyword id="6356975" type="UNKNOWN" weightage="20" keywordseo="wages">wages</keyword> rise by a little over 2% as per a state-wise notification from the Ministry of Rural Development. </li><li>The wage hike has been progressively declining in the last few years. From a 5.7% hike in 2015-16, it fell to 2.9% in 2016-17 and 2.7% in 2017-18. </li></ul> Despite <a href="https://www.businessinsider.in/the-modi-government-has-increased-funding-for-a-cash-strapped-job-guarantee-scheme-to-an-all-time-high-ahead-of-budget-2019/articleshow/67555665.cms">a record outlay</a> for the Indian government’s National Rural Employment Guarantee scheme in 2019-2020, daily workers enrolled in the scheme will reportedly receive the lowest wage hike since its <a href="http://nrega.nic.in/NREGArpt_eng.pdf">inception in 2006.</a> On average, unskilled manual workers will see their wages rise by a little over 2% as per a state-wise notification from the Ministry of Rural Development, reported <a href="https://indianexpress.com/article/india/rural-distress-and-demand-up-nreg-gets-lowest-wage-hike-for-2019-20-5647823/">the Indian Express</a>. In fact, workers in at least three states - Karnataka, Kerala and West Bengal - will see no change in their daily wage rates. The wage hike has been progressively declining in the last few years. From a 5.7% hike in 2015-16, it fell to 2.9% in 2016-17 and 2.7% in 2017-18. This comes as the number of workers in the scheme has been increasing. The scheme recorded 2.6 billion work days last year compared to 2.3 billion in 2016-17. Hence, even with a rise in budgetary allocations, there’s a larger base of workers to cater to. There might be another reason for the decline in wage growth -- rural distress. The wages paid under the scheme are tied to<a href="https://www.thehindubusinessline.com/economy/ec-likely-to-clear-revised-mnrega-wage-rates/article26650189.ece"> the consumer price index (CPI) for agriculture workers</a>. In determining the wage rates for the new fiscal year, the Ministry of Rural Development reportedly compares the CPI rates for agriculture workers for <a href="https://www.downtoearth.org.in/blog/agriculture/does-centre-s-move-to-hike-mgnrega-wages-hold-any-value--63732">December 2018 and December 2017</a>. Consumer <keyword id="22195" type="COMPANY" weightage="20" keywordseo="Inflation">inflation</keyword> has been<a href="https://www.businessinsider.in/no-low-inflation-is-not-always-a-good-thing-heres-why/articleshow/67541528.cms"> on a downward slope</a> as of late, hitting <a href="https://www.businessinsider.in/is-the-indian-villager-really-spending-way-more-on-medicine-than-food/articleshow/67536050.cms">an 18-month low</a> in December 2018, owing to a weakness in the prices of food items amid an excess in agricultural production. Moreover, while linking wages to rural inflation seems a justifiable practice, it will only perpetuate the current trend of low prices as low wages means lower aggregate demand in rural areas. SEE ALSO: <a href="https://www.businessinsider.in/the-modi-government-has-increased-funding-for-a-cash-strapped-job-guarantee-scheme-to-an-all-time-high-ahead-of-budget-2019/articleshow/67555665.cms">The Modi government is looking to boost rural consumption with record outlay for employment scheme</a>

You Searched For "MGNREGA" and got 8 results

Revival of rural economy to take time in the absence of triggers: JM Financial

IANS

What is Magnerga and how can one Enroll in the scheme

BI India Bureau

"FM Sitharaman should try a MGNREGA-like plan for urban unemployed."

Business Insider India

India's Food Minister says there is enough grain stock to feed migrants for free for 2 months

PTI

Technology plugged the leaks in India’s ₹60,000 crore rural employment guarantee scheme

Prabhjote Gill

Today’s top tech news: Aadhar could be a ‘master database’ of Indian citizens, NASA has a fail safe in place in case Artemis goes wrong and Indiamart’s CEO is celebrating the company's IPO

Rural distress can be addressed via infra building, demand boost by PM Kisan, MGNREGA: Survey

PTI

India’s rural jobs programme is reportedly offering its lowest wage hike ever next year

Dilsher Dhillon

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