Maharashtra, Assam & Jharkhand seek more funds under NREGA

NEW DELHI: Three states have sought more funds under the government’s rural employment scheme to meet a surge in demand for jobs from farm hands affected by fluctuation in monsoon rains. Poor rainfall in Maharashtra, Jharkhand and Assam this year has dried up farm work, compelling farm workers to turn to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) — the UPA government’s flagship social sector programme that assures every rural household with 100 days of unskilled manual work in a financial year. Enrolments under MGNREGS, initiated primarily to ensure livelihood in lean farm seasons, are usually low during monsoons, which overlaps with the peak farm season.

But with more job seekers, these states have overshot their estimates of work demand under MGNREGS for the first three months of the current fiscal, forcing them to seek more funds from the Centre. “Rainfall has not been that good in some areas and some states have come to us for an upward revision in the initial estimates.

This points to an increase in demand for employment,” rural development ministry joint secretary DK Jain said. Although the cumulative monsoon deficit was only 5 % for the week ended August 3, it was poor in some regions of Maharashtra, Jharkhand and Assam. While Maharashtra recorded a deficit of 13-30 % in many areas, it was 55% in Jharkhand and 35% in some districts of Assam.

Maharashtra, which was anticipating annual work demand from about 800,000 rural households, has sought a three-fold increase in the initial labour budget of .`686 crore. “Rainfall is some districts have not been sufficient. With less work in the fields, the other option for them is NREGA,” a Maharashtra state department official said. Similarly, Jharkhand and Assam have asked for an upward revision in their labour budget estimates and more funds to meet the surge in demand for work.

The Centre uses the labour budgets of states to decide their annual funds allocation. For most states, employment demand under the scheme peaks in the November to March period when farming activities are low, accounting for 60-65% of the annual work demand. Data from the rural development ministry shows that funds utilisation till June by Assam has improved 200% compared with the same period last year. Maharashtra’s utilisation has risen by 60%.

“We have not yet overshot our estimates but might be off the mark,” said an Assam state department official, adding that some districts had received less rainfall and were likely to see more demand. “This being the peak season (for agriculture), people turning up for NREGA work is more than last year,” the official said. The odds of labour budget estimates being off mark are high as projections are based on the previous year’s actual work demand and expenditure.