9 Years Later, UPA's Flagship Scheme for Rural Poor Plagued by Lack of Funds

There isn't much to do for Pantho Munda, a resident in Angara village of Jharkhand's Ranchi district.  He has spent 18 months working under the Mahatma Gandhi National Rural Employment Guarantee Scheme, or MNREGA, building a well in the village. And he is still waiting for part of his payment.

MNREGA, a scheme launched in 2005 by the Congress-led UPA government, promises 100 days of guaranteed work a year to rural households.

But in the last many months, payments have tapered off. And Mr Munda's repeated visits to the 'pradhan' or village head have been unsuccessful, as he always gets the same response: lack of funds.

Rs. 3,000 - the monthly amount promised to those working under MNREGA - makes the difference between having enough for a meal or going hungry to bed for Mr Munda, and his family of seven.

The scheme is in its 10th year, and has helped rural India create productive assets, even empowered women in villages and increased economic security for a vast majority of rural poor, but the question of funding remains one of its biggest concerns, say activists.

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Speaking to NDTV, economist and social scientist Reetika Khera felt that MNREGA, over the years, has been a mixed bag. 

"We are just spending 0.3 per cent of our GDP on this scheme so unlike what many believe, it isn't costing us much. Our burden of other subsidies is much higher. And data from NSS (National Sample Survey) also shows that MNREGA has actually helped reduce inefficiency in the system over the years. In 2007-08 just a small percentage of money sent by the Centre was actually reaching those  involved in MNREGA work; that has now gone up substantially," said Ms Khera.

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But, she added, "One big concern continues to be budgets for the scheme and whether the central government will cut spending on this programme."

Over the years, state governments have not received enough funds to implement the programme, the reason why pending liabilities have increased from Rs 2,034 crore in 2011-12 to Rs 5,927 crore in 2013-14 (figures provided by Government of India).

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For many like Mr Munda, the uncertainty over whether payments will come in time has also increased. While in 2012-13, 61 per cent payments were made within the first 15 days of the month, in this fiscal year, only 28 per cent payments have been made in that time frame (figures provided by Government of India): a concern that has been reflected in letters written to the Centre by Chief Ministers of states like Bihar, Chhattisgarh, Odisha and West Bengal, among others.

MNREGA was the flagship scheme of the UPA during its first tenure but nearly a decade on, its survival and success depends on how much the new government is willing to invest in its future.