Mystery of MGNREGA demand asymmetry

Popularity of the MGNREGA scheme in poorer states is well-known. But a new data analysis reported in this paper has thrown up an interesting fact: Tamil Nadu, one of India's most industrialised states, takes a much larger share of funds under the rural employment guarantee scheme than Bihar, one of the country's poorest and more populous states. Over the past five years, TN accounted for 10-15.3% of India's annual work demand submitted by individuals under MGNREGA, while Bihar made up for 4-5.7%. As for person-days generated, TN's annual share has been 8.6-13.1% over the same period, compared to Bihar's 5-8%. Other progressive southern states like Andhra Pradesh, Karnataka and Kerala have also been cornering larger shares of MGNREGA funds than states with similar populations or workforces.

What accounts for this unintended asymmetry? One, an efficient administrative set-up has not just streamlined the job demand-to-payment process better, but it has also - as the TN case study shows - managed to execute a geographical exercise where labourers can find work at a place not far from their homes, thereby reducing the need to travel far, never mind migrate. The other factor is higher participation by women. 80% of active MGNREGA workers in TN are women, while in Bihar, the corresponding figure is about 54%. The high number of female workforce participation in MGNREGA work can be attributed to decades of the southern state's progressive politics, policies and supportive ecosystem.

While GoI should delve deeper into this 'north-south' asymmetry, laggard states must learn how to utilise the scheme better and weed out roadblocks in MGNREGA implementation. Essentially, make it work better for those who need this economic cover.