Fix the shovel economics

Far from being a game changer, MGNREGS is increasingly proving to be full of supply-side problems—from delays in wage payment and non-tracking of transactions to allegations of corruption and low-quality work resulting in unproductive assets. Faithfuls still want more of it, with more than 100 days’ employment, extension of minimum wages to the scheme, etc. Sceptics question the quality of work and its egregious consequences—its contribution to wage hikes in sectors such as agriculture and manufacturing, de-skilling of rural labour, incentivisation against migration, and perpetuation of India’s structural unemployment.

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