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<ul><li>The Finance Minister may announce a similar scheme as <keyword id="6361863" type="General" weightage="20" keywordseo="MGNREGA" source="Orion">MGNREGA</keyword> for the urban population during the Union Budget 2022-2023 on February 1.</li><li>Last year, in August 2021, a parliamentary standing committee had suggested that the Union government should roll out a similar scheme.</li><li>A total of 6.51 crore people have been given employment under the MGNREGA scheme during the fiscal year 2021-22.</li></ul>This year’s Union Budget, which will be announced on February 1 by the Finance Minister Nirmala Sitharaman, may drop a bomb by announcing an urban version of the Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGA). This scheme may help the economy in recovering from the job and income loss during the COVID-19 pandemic in the urban areas of the country. Last year, in August 2021, a <a href="http://webcache.googleusercontent.com/search?q=cache%3Ahttps%3A%2F%2Fwww.livemint.com%2Feconomy%2Fparl-panel-recommends-mgnregs-like-job-scheme-for-urban-poor-11628108280192.html&amp;rlz=1C1GCEU_enIN947IN950&amp;oq=cache%3Ahttps%3A%2F%2Fwww.livemint.com%2Feconomy%2Fparl-panel-recommends-mgnregs-like-job-scheme-for-urban-poor-11628108280192.html&amp;aqs=chrome..69i57j69i58.3291j0j4&amp;sourceid=chrome&amp;ie=UTF-8">parliamentary standing committee</a> had suggested that the Union government should roll out a similar scheme like MGNREGA for urban labourers as well, like what India has for rural job-seekers. Introduced in 2006, MGNREGA, is a government’s employment programme, which gives livelihood security by providing at least one hundred days of guaranteed wage employment in every financial year to every rural household whose adult members volunteer to do unskilled manual work. <div type="image" title="MGNREGA budget over the last five years" msid="89199939" hostid="261"></div> The Union Budget 2021-22 allocated ₹73,000 crore for the MGNREGA, which was an increase by ₹11,500 crore as compared to 2020-21. A total 6.51 crore people have been given employment under this MGNREGA scheme during the fiscal year 2021-22. <div type="image" title="Unemployment Rate in India" msid="89200451" hostid="261"></div> “ The consequential effects on loss of jobs, rising unemployment, indebtedness, nutrition, health and education of unorganised workers and their family members have the potential to cast a long shadow and cause irreparable damage,” said Bhartruhari Mahtab, head of the standing committee on labour and a member of parliament (MP) from Biju Janata Dal, in a report submitted to the parliament. According to Betterplace estimates <a href="https://economictimes.indiatimes.com/news/economy/indicators/they-have-not-returned-how-covid-19-has-impacted-labour-migration-in-the-country/articleshow/86513113.cms?from=mdr">cited</a> by the Economic Times, around 150 million labourers moved back from urban cities to their rural villages during the first wave of the COVID-19 pandemic, in 2020. The committee further said, “The committee’s attention has been drawn to the fact that unlike employment generation programmes in rural areas, the plight of urban poor has not got much attention from the government… There is an imperative need for putting in place an employment guarantee programme for the urban workforce in line with MGNREGA”. Experts believe that an urban jobs scheme will definitely help tide over such a situation. “We have seen MGNREGA creating huge positive impact on rural employment and infrastructure…there is no <keyword id="13057761" type="General" weightage="20" keywordseo="Urban-MGNREGA" source="Orion">urban MGNREGA</keyword>…can we create [an] urban MGNREGA [like] solution so that urban unemployment gets reduced and the consumption starts improving,” Nilesh Shah, the managing director and chief executive officer (CEO) of Kotak Mahindra Mutual Fund told Business Insider. He further said, “Creating urban MGNREGA is one solution, but the real solution is creating opportunities for people.” <div type="image" title="Decline in Salaries Jobs" msid="89200496" hostid="261"></div> Now, the question arises, how is it possible to bring out the job guarantee schemes for urban workers? Answering that question, Mahesh Vyas, CEO of Centre for Monitoring Indian Economy (CMIE) <a href="https://www.youtube.com/watch?v=axFAUAFwpUs">highlighted</a> that there is a manpower crunch at various public places like healthcare centres, schools, security, judiciary and so on. Under this urban employment scheme, people can be given jobs at these public places, which can surely fill the supply and demand gap. He said,“ When we ask, are there enough people manning public schools, healthcare centres or enough people in the government offices to serve you when you need services?…. The answer will systematically be no but actually there are not enough people to serve us in urban cities. To fix that let’s have an urban employment scheme to ensure that the government is there when we need them.” SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/heres-why-there-is-less-adoption-of-the-new-tax-regime-and-how-budget-2022-can-make-it-more-attractive/articleshow/89195776.cms">Here’s why there is less adoption of the new tax regime and how budget 2022 can make it more attractive</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/budget-2022-kotak-mahindra-mutual-funds-ceo-explains-why-real-estate-housing-and-textiles-should-get-boost/articleshow/89194327.cms">A market guru explains why real estate, housing and textiles should get some budget boost</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/budget/news/from-tax-structure-rationalisation-to-expanding-ev-charging-infrastructure-heres-what-the-industry-wants-from-budget-2022/articleshow/89162814.cms">From tax structure rationalisation to expanding EV charging infrastructure, here’s what the industry wants from Budget 2022</a>

Budget 2022 expectation: Why India needs an urban MGNREGA

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

<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

<ul><li>Job creation will not just help solve widening inequalities but also help the Indian economy address the problem of weak domestic demand.</li><li>A big part of this is in creating better paying employment for those at the bottom of the pyramid who are engaged in low paid informal work arrangements.</li><li>This can be done by boosting <keyword id="92538" type="ORGANIZATION" weightage="20" keywordseo="MNREGA">MNREGA</keyword> allocation, creating productive job opportunities in the manufacturing sector by leveraging the PLI scheme and providing support to micro and small enterprises.</li></ul>It is now abundantly clear that a disproportionate burden of the COVID-19 shock has been borne by those at the lower end of the income distribution. Especially for those engaged in informal work arrangements. As we lay out a roadmap of revival and recovery for the Indian economy in the budget, we need to focus on creating productive employment opportunities that provide decent wages and offer some degree of job security for wage earners and self-employed. <div type="image" title="Rural wage growth has flattened(1)" msid="80561918" hostid="261" caption="&amp;lt;p&amp;gt;Rural wage growth &amp;lt;/p&amp;gt;"></div> This is important, not just to address widening inequalities, but also to overcome the problem of inadequate aggregate demand. Reviving domestic demand emanating from those at the lower end of the income distribution — who have a higher marginal propensity to consume — will play a vital role in spurring private investment which has been steadily declining over the last decade and has fallen to 27.6% of GDP. Much of the focus thus far has been on addressing supply-side bottlenecks and structural factors that have impeded private investment, but now greater attention needs to be paid to the demand side factors. This will require a mix of various strategies. MNREGA needs more funds and higher wages To begin with, there is a need to increase the budgetary allocation for National Rural Employment Guarantee Act (MNREGA), the one programme which has worked as an effective countercyclical automatic stabilizer during the COVID-19 crisis. In 2020-21, the budgetary allocation for MNREGA was ₹61,500 crores. Subsequently, an additional ₹40,000 crores were allocated under the Atma Nirbhar Bharat programme. <div type="image" title="MNREGA allocation" msid="80562411" hostid="261" caption="&amp;lt;p&amp;gt;MNREGA allocation&amp;lt;/p&amp;gt;"></div> This allocation needs to be significantly enhanced as demand for MNREGA works is rising rapidly and several states are falling short of funds to provide work. Additionally, the government would do well to increase the number of working days offered under the programme from 100 to 150 days — as permitted under the architecture of the programme. Further, given that MNREGA wage rates of at least 17 of the 21 major states are even lower than the state minimum wage for agriculture, there is a need to bring the former in line with the latter. This will help fuel rural demand, from those at the bottom of the distribution. <div type="image" title="MNREGA_edited" msid="80566452" hostid="261" caption="&amp;lt;p&amp;gt;Workers protesting for more work days under MNREGA and other demands in Patna&amp;lt;/p&amp;gt;"></div> Government needs to create more productive job opportunities Concomitantly, the imperative of accelerating the pace of productive job opportunities, in particular, in the manufacturing sector cannot be overemphasized. The government has announced a production-linked incentive (PLI) scheme amounting to ₹ 2 lakh crores — approximately 1% of GDP — over the next five years covering 14 sectors. To get the maximum bang for the buck, it might be worth considering linking these incentives not just to firms' production but also to employment creation on the firms’ payroll. This could potentially give a huge boost to productive job creation. <div type="javascript" title="Custom" contenttype="Video"><cdata><![CDATA[]]></cdata></div> However, it needs to be recognized that such incentives alone cannot give an impetus to manufacturing production and employment. As India returns to a strategy of import substitution, many of the firms availing these incentives are likely to find it difficult to integrate in global value chains and procure reasonably priced imported inputs, thereby hurting their competitiveness. For the success of PLI and for an export promotion strategy, there needs to be serious rethink on the increase in import duties which we have witnessed in the budget over the last three years. Smaller businesses should not be ignored While the PLI scheme focuses on large formal enterprises, it is important to note that the firm landscape is dominated by micro and small enterprises which have struggled to remain afloat during this period. Several of these enterprises are in the informal sector and have been unable to access the credit support offered by the government thus far. It would be worthwhile putting in place an enterprise support scheme for informal sector firms that can provide them some immediate relief. <div type="javascript" title="Custom" contenttype="Video"><cdata><![CDATA[]]></cdata></div> Undeniably, this is a challenging task given that these firms are not registered. We would need to find creative ways of supporting informal enterprises through financial and monetary measures such as reducing their operating costs by offering waivers or deferred payments for public services such as electricity, water or rent. In the medium term, however, it is important to focus on enhancing productivity of informal enterprises which will in turn enable an organic process of formalization. This will require providing customized technical and business skills, financial services, enterprise support and training to better compete in the markets. <div type="image" title="snapshot-1611900385290" msid="80562704" hostid="261" caption="&amp;lt;p&amp;gt;Employment across India&amp;lt;/p&amp;gt;"></div> The provision of local infrastructure facilities that cater to the specific needs of the local enterprises and clusters also plays a vital role in not just enhancing the productive capacity of informal enterprises but also in boosting employment creation in local communities in the short-term. While the budget is likely to focus on infrastructure creation to boost employment, it is important to note that big ticket infrastructural projects have a long gestation period and are capital intensive. They alone may not generate the desired employment benefits in the short run. Therefore, it would be prudent to also pursue more modest smaller projects at the local level to generate stronger multiplier effects in the local economy. The budget will expectedly lay out several measures to boost growth. However, it is imperative that maximisation of employment, and not just maximisation of GDP take centre stage in the budget. Growth estimates from the second quarter for FY 2020-21 suggest that the recovery witnessed by the Indian economy is being led by profits and not wages. However, this incipient recovery cannot be sustained unless higher profits lead to higher investment demand. The state of the labour market, both in the formal and informal sector, will play a crucial role in driving domestic demand and thereby private investment. *The author is a Senior Fellow at ICRIER. Views expressed here are personal. SEE ALSO: <a href="https://www.businessinsider.in/budget/news/glee-s-t-january-2021-gst-collection-may-have-beat-the-december-record/articleshow/80512714.cms">Glee.S.T! January 2021 GST collection may have beat the December record</a> <a href="https://www.businessinsider.in/budget/news/prime-minister-narendra-modi-signals-big-defence-budget-allocation-for-make-in-india/articleshow/80511082.cms">India’s Prime Minister Narendra Modi may just have signalled a big allocation for defence equipment manufacturing, 3 days before the budget</a> <a href="https://www.businessinsider.in/budget/news/india-needs-to-add-massive-amount-of-solar-and-wind-power-capacity-this-year-to-meet-its-first-target/articleshow/80496138.cms">India needs to add massive amount of solar and wind power capacity this year to meet its first target</a>

India needs more ‘productive’ jobs and higher wages to address its demand problem

NREGA <keyword id="2118894" type="PERSON" weightage="20" keywordseo="job-card" source="Orion">Job Card</keyword> is given under the National Rural Employment Guarantee Act, 2005. After its launch, the scheme was renamed as MGNREGA, expanded as Mahatma Gandhi National Rural Employment Guarantee Act. This scheme is one of the most popular social measures of the Indian Republic to guarantee “the right to work” in rural areas of India. The project seeks to improve the financial condition of the deprived population inhabiting the rural areas of the country. As part of this labor law, the local government is bound to give not less than 100 days of waged employment to the masses in the rural areas in order to enhance their quality of life. <cmsannotation type="cmsannotation" annotationid="What is job card in India" comment="subhead" text="What is job card in India">What is <keyword id="6355569" type="General" weightage="20" keywordseo="job" source="Orion">job</keyword> card in India</cmsannotation> Job card in India is issued to every household under the NREGA scheme administered by the Government of India. The job card contains the names and photographs of all the members in the household. This is actually a legal document that will guarantee the household a minimum of 100 days of salaried employment so that the card holder can exercise his or her ‘Right to work’ under the Mahatma Gandhi National Rural Employment Guarantee Act. If you do not have a job card in India, you can apply for one by visiting the <a href="http://www.nrega.nic.in">NREGA website</a>. <cmsannotation type="cmsannotation" annotationid="How to check the balance in Job Card" comment="subhead" text="How to check the balance in Job Card">How to check the balance in Job Card</cmsannotation> As on date, there is no way to check the NREGA account balance in the online mode. However, you will find some details on the NREGA job card that you can use to check the NREGA payout for a given period of time. The job card will give details of the number of days for which the employee was given job. There is a fixed wage for every day of work that the said individual has completed under the scheme. This is usually updated on the job card. Since the rate of the daily wages allowed varies from state to state and that it is liable to change periodically, you must first find this out to be able to get the right balance information on the job card. Know that the rates allowed is the same throughout a given state. Once this detail is available, you can check the NREGA account balance for the payouts that are pending to be done. Once the payment is added to your bank account, it is possible to check the bank balance using some apps or following the procedures advised by the bank in which you have your bank account. <cmsannotation type="cmsannotation" annotationid="The job card payment process" comment="subhead" text="The job card payment process">The job card payment process</cmsannotation> The wages are calculated based on the work done. The primary payment process is to transfer the wages to the bank account of the job card holder directly. If the applicant does not have a bank account, he or she must open one using the NREGA job card as a KYC document proof. It is possible to open a zero balance account under this scheme. Some Gram Panchayats choose to give the payment in cash. The MGNREGA payment is the same for both the genders.

How to check job card balance (Mgnrega payment details)

<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>

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

<ul><li>The government is increasing the annual funding for the <keyword id="6361863" type="UNKNOWN" weightage="20" keywordseo="MGNREGA">MGNREGA</keyword> scheme by 11% to ₹610.8 billion. </li><li>The scheme has been suffering from a funding crunch for the past few years, which has caused payment delays. </li><li>The <keyword id="6354642" type="PERSON" weightage="20" keywordseo="Modi">Modi</keyword> administration is trying to curry favour from rural Indian voters ahead of general <keyword id="6355644" type="DEFINITION" weightage="20" keywordseo="elections">elections</keyword>. </li></ul> The Indian government <a href="http://pib.nic.in/PressReleseDetail.aspx?PRID=1560027">announced</a> on January 15 that it was increasing funding for the previous administration’s flagship employment scheme, the Mahatma Gandhi National Rural Employment Guarantee (MGNREGA) programme,in its upcoming interim <keyword id="6358021" type="ORGANIZATION" weightage="20" keywordseo="budget">budget</keyword>. This is a response to a petition from over 250 activists, lawmakers and <keyword id="45092" type="COMPANY" weightage="20" keywordseo="farmers">farmers</keyword> rights leaders complaining of the programme’s <a href="https://economictimes.indiatimes.com/news/politics-and-nation/250-lawmakers-activists-write-to-prime-minister-raising-concerns-over-mgnrega-fund-crunch/articleshow/67529649.cms">inadequate funding</a>. The move is an attempt to sustain rural consumption, which has been falling as of late amid low food prices, which has translated into a decline in rural income. In fact, two-wheeler sales, which are often used a proxy for rural demand, have been on a downward trend for most of a year before rebounding in December owing to discounts from bike manufacturers and lower fuel prices. A necessary hike Established through an act in 2005, the scheme aims to provide a minimum of 100 days of paid employment in a financial year to every member of rural household. The work entailed is usually manual work like construction. The Modi administration, acting through the Ministry of Rural Development, is allocating an additional ₹60.84 billion to the programme, taking its total funding for 2019-2020 to ₹610.84 billion - the highest ever annual allocation for the programme since its inception. In the previous Union Budget, Finance Minister Arun Jaitley had hiked the annual spend for the programme by 15% to ₹55 billion. The higher funding is necessary. The MGNREGA has been suffering from a funding crunch since 2017-18 as state governments have not received additional sanctions from the central government, which has been dealing with a fiscal crisis of its own. For example, <a href="https://www.thehindu.com/news/national/mgnrega-scheme-faces-fund-crunch/article25921235.ece">nearly 100%</a> of the funding for the scheme was exhausted by the beginning the January 2019, with three months left to go. Despite the funding crunch, which has manifested in payment delays and an insufficient compensation rate, the programme has managed to provide a cumulative total of 2.36 billion working days to beneficiaries on an annual basis in the last three years. The decision to increase funding for the programme comes as part of the government’s attempts to alleviate rural distress ahead of general elections in May. The scheme has gained popularity in the rural heartland in the last few years as it has provided indebted farmers an alternative source of income, which caused the BJP <a href="https://indianexpress.com/article/explained/why-the-bjp-embraced-mgnrega-the-living-monument-of-the-upas-failures/">to backtrack from its criticism </a>of the programme and double down on it starting in 2016. Aside from this, the Modi administration is already said to be preparing a generous package of <a href="https://www.businessinsider.in/interest-free-loans-and-income-support-the-upcoming-budget-may-be-a-song-for-indias-farmers/articleshow/67538156.cms">interest-free loans and income support schemes</a> for smallholder farmers in its upcoming Budget. SEE ALSO: <a href="https://www.businessinsider.in/interest-free-loans-and-income-support-the-upcoming-budget-may-be-a-song-for-indias-farmers/articleshow/67538156.cms">Interest-free loans and income support— the upcoming Budget may be a song for India’s farmers</a> <a href="https://www.businessinsider.in/nearly-90-of-rural-homes-in-india-have-savings-accounts-in-banks-report/articleshow/65438348.cms">Nearly 90% of rural homes in India have savings accounts in banks: Report</a>

The Modi government is looking to boost rural consumption with record outlay for employment scheme

India’s main opposition party The Indian National Congress has raised the stakes for the incumbent Narendra Modi government. On Monday, Congress president <keyword id="5268" type="PERSON" weightage="20" keywordseo="Rahul-Gandhi">Rahul Gandhi</keyword> promised a minimum income guarantee for every poor person if the party won the 2019 elections. The Modi administration is also reportedly preparing to unveil its own income support in the upcoming interim budget. What is the promise from Congress President Rahul Gandhi? Congress has promised to give the country’s poor a minimum amount of money from the government as monthly income, but hasn’t specified how much it will be. Is it the same as universal basic income (UBI)? It is unlikely to be the same as UBI, which by definition would mean an assured amount of money from the government to every citizen of the country. However, minimum income guarantee may only be available to people below a certain income threshold. How much will it cost the government? It is difficult to ascertain the cost without the details of the programme. India’s total population is 1.36 billion, of which 22% of people below poverty line. Assuming that the government supports only those below the poverty line, it will still have to pay nearly 300 million people a fixed sum of money every month. India Ratings estimates that the BJP's potential income support scheme, to be released in its budget, could end up costing at least ₹1.5 trillion a year - or 0.7% of GDP - in the absence of other support schemes. Separately, SBI’s Chief Economist Soumya Kanti Ghosh recently <a href="https://www.businessinsider.in/what-if-interim-budget-2019-replaces-subsidy-with-cash-transfer/articleshow/67658379.cms">estimated</a> that about 143 million farmers get one kind of subsidy or another. Accounting for possible omissions for lack of proper identification of beneficiaries and for those who have no land or documentation, the report said that the cost of giving direct cash transfer in lieu of subsidy will be about ₹1.2 trillion a year. Meanwhile, Pranab Bardhan, professor of graduate school at the department of economics, University of California, Berkeley, estimated that if a scheme like the UBI were to be implemented, the government would have to pay ₹16,000 per household and it would cost ₹2.1 trillion a year, or 1.25% of the gross domestic product (GDP). Government has 940 centrally sponsored schemes, according to a <a href="http://www.iitd.ac.in/CEAIITD/pdfs/3/MOOC_Sub&amp;UBI_14Jun_v10.pdf">report </a>from former Chief Economic Advisor Arvind Subramanian in 2016. According to that estimate, the cost of giving every citizen some money every month would cost the exchequer about 4-5% of GDP. Who will bear the cost? If the central government raises taxes on the rich, the additional burden will be on the really well-off. However, it may affect the political donations that help parties fight elections. Raising the burden of middle-class taxpayer may have a political cost and won't win votes. If the government borrows money to fund additional expense, the burden will be on every taxpayer in the form of higher interest cost, weaker rupee and higher inflation. Can India afford such a huge burden? In theory, something like a minimum income guarantee can be funded by three ways: withdrawing or reducing existing subsidies or by raising taxes on richer sections of the people. So to give poor people given minimum income, would everyone else lose subsidies or pay more tax? Not necessarily. And certainly, no one will lose all subsidies. The subsidies available from the state governments will continue. If at all, only the central government subsidies may be withdrawn once it implements minimum income guarantee. So, if you live in Tamil Nadu or Punjab and get subsidised electricity, that will likely continue. Raising taxes will be a different matter. So which of the central government subsidies remain? As of now, the biggest subsidies that the central government offers are on food, fuel, fertilisers, liquified petroleum gas (LPG) cooking cylinders, as well as on tax and interest rates to specific sections of the population. One cannot say for sure how the government chooses to rationalise the existing subsidies. Can they withdraw food subsidy? Unlikely. Food subsidies are made available through the public distribution system, or ration shops, and are unlikely to be dismantled. 52.3% of all households purchased cereals from ration shops in 2011-12 compared to 27% in 2004-05, according to a Niti Aayog <a href="https://niti.gov.in/writereaddata/files/document_publication/Final%20PDS%20Report-new.pdf">report</a> from 2016. It won’t be a politically savvy move to increase the cost of food for half of the country’s households in one go. India also has a law that gives every citizen a right to affordable food, with the National Food Security Act 2013. So no government can withdraw food security without going back to the Parliament for permission. Do we still get fuel subsidy? While petrol and diesel prices have been deregulated, kerosene prices are subsidised as it is used mostly by the very poor and bought at ration shops. While the cost of kerosene subsidy was budgeted in February 2018 at about ₹4,500 crore, withdrawing the support will only hurt the poorest. What about the subsidy on cooking gas? The subsidy on LPG cooking cylinders is already transferred online to the eligible buyers. Current prime minister Narendra Modi pushed millions of Indians to adopt LPG cylinders instead of coal hearths. [hyperlink] Now, it will be a politically sensitive decision for any party to withdraw benefits on basic necessities like LPG, especially after literally forcing them to use it. What about fertilisers? Fertiliser subsidies are once again availed by farmers and the recent rural distress will make it difficult for the government to withdraw any farm subsidy. Moreover, India <a href="https://www.thehindubusinessline.com/economy/agri-business/india-to-continue-importing-fertiliser-in-medium-term-ind-ra-study/article24679053.ece">imports</a> 28% of all the fertilisers it needs, according to India Ratings and Research. On one hand the global prices of fertilisers have been rising, and the weaker rupee has made these imported fertilisers even more expensive. Withdrawing fertiliser subsidy will make farmers really angry. What about health and education subsidy? Ayushman Bharat, a scheme that was launched in 2018, is a centrally sponsored insurance programme targeting 10 crore families across India who are either poor and deprived or identified as urban workers' families. It covers hospitalisation cost up to ₹5 lakhs a year, and is likely to continue. Primary health centres are at funded by state governments. Central government subsidises higher education in places like IITs, IIMs, AIIMS, JNU etc, which are also likely to stay. What are interest subsidies? Often, the state-owned banks offer cheap loans to different sections of the population and the government bears the difference in interest rate. But don’t India’s farmers already get a lot of subsidies? Yes, India’s farmers are entitled to minimum support (MSP) price on their produce. Even if the market price of the crop is less than the MSP, the government is supposed to make for the difference. However, while many governments have either promised or increased the MSP, the <a href="https://indianexpress.com/article/opinion/columns/msp-kharif-crops-narendra-modi-minimum-support-price-gst-farmers-5270286/">net impact </a>on the farmers has been minimal. “No matter how hard the government tries, it cannot procure even 25% of the production of various kharif crops, except in paddy and cotton, as a robust procurement system does not exist for other crops,” experts at Indian Council For Research On International Economic Relations commented in July 2018. Therefore, withdrawing key subsidies, including those on fertilisers or interest on loans, will make the minimum income guarantee a zero-sum offer for the farmers. Will MGNREGA continue? Yes, it’s an employment guarantee scheme, not a subsidy. People are assured a certain number of days of work every year, for which they are paid. Is the Congress' promise a political gimmick? Minimum income guarantee will allow poor people to poor people to access basic necessities. Of course, this is assuming that the minimum amount given to the people is enough to cover their basic expenses. Further, the government will have to ensure that the infrastructure is in place to implement a massive programme like this in a complex country like India. The biggest problem in India is that it is very difficult to accurately identify those who need such a programme. So to analyse the merits of the promise, we will need more details. See more <a href="https://www.businessinsider.in/Presidential-ego-or-a-dynasts-charm-what-Indian-voters-like-is-still-a-mystery-to-the-countrys-politicians/articleshow/67685811.cms">Presidential ego or a dynast’s charm — what Indian voters like is still a mystery to the country’s politicians</a>

Explained: What is minimum income guarantee and how it may work?

The <keyword id="19900449" type="General" weightage="20" keywordseo="government" source="keywords">government</keyword> on Tuesday said it will launch three <keyword id="22514006" type="General" weightage="20" keywordseo="employment-linked-schemes" source="keywords">employment-linked schemes</keyword>. While presenting the Union Budget for 2024-25, <keyword id="19956758" type="General" weightage="20" keywordseo="Finance-Minister" source="keywords">Finance Minister</keyword> <keyword id="19916618" type="General" weightage="20" keywordseo="Nirmala-Sitharaman" source="keywords">Nirmala Sitharaman</keyword> said the government will provide incentives to 30 lakh youth entering the <keyword id="19916569" type="General" weightage="20" keywordseo="job-market" source="keywords">job market</keyword> by providing one month's PF (provident fund) contribution. She announced that working women hostels will be set up in the country to promote women's participation in the workforce. She added that the government will provide funds to the private sector, domain experts and others for developing climate-resilient seeds. An already existing scheme -- MGNREGA (Mahatma Gandhi National Rural Employment Guarantee) -- aims to provide 100 days of wage employment in a particular fiscal year to at least one member of every household whose adult members seek manual work. SEE ALSO:<a href="https://www.businessinsider.in/budget/news/union-budget-2024-live-updates-finance-minister-nirmala-sitharaman-key-announcements-23-july/liveblog/111942008.cms" target="_blank"></a> <a href="https://www.businessinsider.in/budget/news/union-budget-2024-live-updates-finance-minister-nirmala-sitharaman-key-announcements-23-july/liveblog/111942008.cms" target="_blank">Union Budget 2024 Live Updates: Finance Minister Nirmala Sitharaman to present her record seventh consecutive Budget today</a><a href="https://www.businessinsider.in/business/news/expectations-from-union-budget-2024-25-how-will-this-budget-impact-you/articleshow/111946291.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/news/expectations-from-union-budget-2024-25-how-will-this-budget-impact-you/articleshow/111946291.cms" target="_blank">Union Budget 2024-25: How will this budget impact you?</a><a href="https://www.businessinsider.in/budget/news/heres-a-quick-overview-of-pm-modi-3-0-governments-first-budget-to-be-presented-by-fm-nirmala-sitharaman-today/articleshow/111944393.cms" target="_blank"></a> <a href="https://www.businessinsider.in/budget/news/heres-a-quick-overview-of-pm-modi-3-0-governments-first-budget-to-be-presented-by-fm-nirmala-sitharaman-today/articleshow/111944393.cms" target="_blank">Here's a quick overview of PM Modi 3.0 government's first budget, to be presented by FM Nirmala Sitharaman today</a>

Government to launch three employment-linked schemes: FM

Hangzhou, A daily wage labourer's son from an impoverished village in Uttar Pradesh, <keyword id="84384" type="General" weightage="20" keywordseo="asian-games" source="Orion">Asian Games</keyword> bronze medallist race walker <keyword id="12117720" type="General" weightage="20" keywordseo="ram-baboo" source="Orion">Ram Baboo</keyword>'s journey from penury to fame is a fascinating story of a strong-willed man making his own destiny. Baboo, who won a 35km race walk mixed team bronze medal in the Asian Games along with Manju Rani, worked as a waiter to self-finance his athletics training and joined his father in road construction under MGNREGA scheme during the COVID-19 lockdown, as his family was hard-pressed. "I have done everything possible in my life so far, from working as a waiter in Varanasi to digging up pits along with my father for road construction under MGNREGA scheme at our village," the 24-year-old Baboo told PTI in an interview. "It's about determination and focus on your goal. If you are determined to achieve, you will find ways to reach your goal. That is what I did." Baboo's father works as manual labourer at Behura village at UP's Sonbhadra district, earning Rs 3000 to 3500 per month which is not enough to run a family of six. Baboo is the only son while he has three sisters. His mother is a homemaker and sometimes helps her husband in his work. "We don't have any land and my father is a labourer. His work is seasonal. During paddy season, he will have more work but in other months his income is less. So, I need to do all these things to realise my dream," he said. "I was not good at studies and not interested also and so I wanted to make a career in sports." Due to his mother's insistence, Baboo took the entrance examination for Jawahar Navodaya Vidyalaya (JNV) near his home and got selected. He was admitted to class VI. Baboo found it tough to follow what was being taught at Jawahar Navodaya Vidyalaya and he began to lose interest in studies. Two years into the JNV stint, something made him decide on his future course of action towards his goal -- the 2012 Olympics -- where India won six medals. "I was in class VII then and I watched at my school hostel television the likes of Mary Kom, Saina Nehwal, Sushil Kumar and Gagan Narang winning medals. The stories also came out in newspaper front pages the next day, and I read all of them. "In fact, I kept cuttings of the newspaper articles and photos of the 2012 Olympics medal winners and kept them in my folder." When he was at the JNV, he played all sports, including football, and he found out that he did not get easily tired even after a lot of running, unlike the other students. That was when he decided he would do long distance running. He initially ran marathons, 10000m and 5000m but developed knee pain. On the advice of local coach Pramod Yadav, he later shifted to race walking which does not put too much pressure on his knees. Baboo might have been born to semi-illiterate parents but he used social media to his advantage. "I opened a facebook account and joined several FB groups relating to fitness and long distance running to find out who can help me in my endeavour." In 2017, when he was around 17 years old, Baboo left for Varanasi where there is a proper athletics stadium and there he got in touch with coach Chandrabahan Yadav. He took a rented house at Rs 1500 a month. His parents sent him a small amount of money and so he worked part-time as a waiter for one month. "I got Rs 3000 per month for working as a waiter but they made me work till midnight and even at 1am. I had to get up at 4am for training at the stadium. It was very difficult for me. People did not respect me and misbehaved with me. So I left Varanasi and returned home." In 2019, Baboo was able to convince a coach at Bhopal SAI Centre to take him under his wings. He then competed in the 50km event at the National Race Walk Championships in February 2020, just before the nation-wide COVID-19 lockdown, and finished fourth. During the lockdown, the Bhopal SAI Centre was shut and Baboo returned home. His parents were finding it difficult to get work to survive. "Luckily, we got work under the MGNREGA scheme and I helped my father in digging pits in road construction work. One person would get Rs 300 to 400 per day depending on the amount of work," he said. After working for one and a half months under the MGNREGA scheme, Baboo became restless, and he left for Bhopal again. In February 2021, he won a 50km race walk silver medal in the National Race Walk Championships and that paved the way for his entry into the Army Sports Institute in Pune with the help of coach Basant Rana. After the World Athletics decided to remove the 50km event from its programme, Baboo shifted to 35km event and won gold in the National Open Championships in September 2021, and a few months later, he was called to the national camp in Bengaluru. After winning gold in 35km at the National Games last year with national record time, Baboo got a job in the Army, and he is a havildar now. "My age at that time was 11 months more than that in the eligibility criteria but I got exemption after winning the National Games gold. I am currently under probation till next month and I am getting around Rs 10000, which is the basic pay. "After this, I will get full salary and I will be able to look after my parents properly." Baboo also said that he will shift to 20km race walk from next season as the mixed team event is unpredictable because the combined timing of male and female competitors of a country is taken into consideration for medal. "You never know, my colleague (woman race walker) may not be able to do well on a particular day, she may be sick but still taking part or she may be disqualified during the competition. All these are not in my hands. "So, I am shifting to a 20km event from next year."

A MNREGA worker who won a bronze medal at the Asian Games: The fascinating story of Ram Baboo

<keyword id="6368386" type="General" weightage="80" keywordseo="singapore-airlines" source="Orion">Singapore Airlines</keyword> on Thursday said it is in confidential discussions with <keyword id="6360721" type="General" weightage="100" keywordseo="tatas" source="Orion">Tatas</keyword> for a possible merger of <keyword id="2467342" type="General" weightage="80" keywordseo="vistara" source="Orion">Vistara</keyword> and <keyword id="2573" type="General" weightage="80" keywordseo="air-india" source="Orion">Air India</keyword>. Tatas has 51 per cent stake in Vistara and the rest is with Singapore Airlines (SIA). Tatas is also the owner of Air India. In a regulatory filing, SIA said discussions with Tatas are ongoing and no definitive terms have been agreed upon between the parties. "In line with its multi-hub strategy, SIA is currently in confidential discussions with <keyword id="8555" type="General" weightage="80" keywordseo="tata" source="Orion">Tata</keyword> to explore a potential transaction in relation to the securities of Vistara and Air India Ltd, a subsidiary of Tata (the 'potential transaction'). "The discussions seek to deepen the existing partnership between SIA and Tata, and may include a potential integration of Vistara and Air India," the filing to the Singapore Stock Exchange said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/39-of-mgnrega-job-card-holders-didnt-get-a-single-day-of-work-in-2020-21-says-study/articleshow/94837158.cms">39% of MGNREGA job card holders didn’t get a single day of work in 2020-21 says study</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/yeida-cancels-allotment-of-14-group-housing-projects-due-to-non-payment-of-dues/articleshow/94832924.cms">YEIDA cancels allotment of 14 group housing projects due to non-payment of dues</a>

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