Once described as a "monument of failure" by Prime Minister Narendra Modi, the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has proven its merit as a cornerstone of rural livelihood, particularly during the unprecedented economic disruption caused by the COVID-19 lockdown in 2020.
Launched in 2005 during Manmohan Singh’s first term as Prime Minister, MGNREGS was a landmark initiative aimed at providing guaranteed wage employment for 100 days a year to rural households.
Supported by the National Advisory Council (NAC) chaired by Sonia Gandhi, the scheme was rooted in the concept of the "Right to Work" and intended to address rural distress and reduce migration.
The scheme’s transformative impact, however, drew contrasting political narratives.
While the Congress hailed it as "a landmark in our history in removing poverty," the Bharatiya Janata Party (BJP)-led government, upon assuming power in 2014, was critical of its implementation. In 2015, Modi quipped in Parliament that the scheme was a "living monument" of the Congress’s inability to alleviate poverty over six decades.
The economic upheaval caused by the pandemic starkly highlighted the importance of MGNREGS. As reverse migration surged following the national lockdown, the scheme became a critical source of income for millions.
A 2022 study conducted by Azim Premji University, in collaboration with civil society organisations, revealed that the programme compensated between 20 and 80 per cent of income losses for the most vulnerable households during this period.
Activist Nikhil Dey reflected on the scheme’s enduring significance.
"The reforms undertaken during the UPA regime, including MGNREGS, have withstood hostility from market fundamentalists and subsequent governments," he said, emphasising their role in empowering marginalised communities.
Dey credited Singh’s leadership for balancing economic liberalisation with initiatives aimed at equitable growth, remarking that the former prime minister recognised the limitations of market-driven policies in addressing poverty.
Commitment to transparency
Aruna Roy, a former NAC member and key architect of rights-based legislations under the UPA government, lauded Singh’s administration for promoting transparency.
"The Manmohan Singh government initiated social audits in MGNREGS and understood that transparency was essential for effective governance in large-scale social sector programmes," she said.
Under the scheme, employment records and fund utilisation were subject to public scrutiny, fostering accountability. Such measures bolstered the effectiveness of flagship programmes, including the right to food, education, and forest rights legislations, introduced during the UPA tenure.
Continuing legacy
Despite earlier criticisms, MGNREGS remains a crucial element of India’s rural development strategy. According to the Ministry of Rural Development, the scheme has provided employment to over 6.7 crore workers from five crore families this fiscal year, with more than half of the beneficiaries being women.
The scheme’s importance was witnessed during the pandemic, reinforcing its role as a bulwark against economic shocks for rural households.
Manmohan Singh, widely regarded as the architect of India’s economic liberalisation, was instrumental in institutionalising measures aimed at inclusive growth during his tenure as prime minister.
He passed away on December 26 at the age of 92, leaving behind a legacy marked by economic reforms and social welfare initiatives. The nation mourns his passing with a seven-day official period of national mourning.
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