SOCIO-ECONOMIC IMPACT OF MGNREGS ON

RURAL PEOPLE: A STUDY IN MANDI DISTRICT

OF HIMACHAL PRADESH

VINOD KUMAR

The National Rural Employment Guarantee Act (NREGA) has

given a new lease of life to the rural people who earn their
livelihood as wage earners. It is among the largest social
welfare schemes implemented anywhere in the world. The
scheme is poised to play an important role in providing
livelihood security for the rural poor, cdtlserving natural
resources and sustaining water supply and food production. It
has brought a positive overall impact on the rural lives with
improved levels of income, access to medical and educational
facilities. The trends show that a more effective implementation
of MNREGA provisions will have a multiplier impact on the
rural poor by way of enhancing their economic independence
and self-confidence with more just and equitable socio-
economic relations. An attempt is made here to measure the
extent of manpower employment generated under the scheme,
their various socio-economic characteristics and gender
variability in the sample districts of Himachal Pradesh
implementing NREGA.

THE STATE of Himachal Pradesh is spread over an area of 55,673 sq. km.
and is bordered by Jammu and Kashmir on the north, Punjab on the south
west, Haryana on the south, Uttarakhand on the southeast and Tibet on the
east. Himachal is a mountainous region, rich in its natural resources.
Elevation range from 450 meters to 6,500 meters above sea level. The
region extends from the Shivalik range of mountains (barely mountainous
region). There is a noticeable increase in elevation from west to east and
from south to north (Bhatt, 1997).
According to 2011 census estimate, the total population of the state is
68.56 lakh, an increase from figure of 60.78 lakh in 2001 census. The total
population growth in this decade is 12.81 per cent while in previous decade
it was 17.53 per cent. The population of Himachal Pradesh forms 0.57 per
374 / INDIAN JOURNAL OF PUBLIC ADMINISTRATION
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cent of India in 2011. In 2001, the figure was 0.59 per cent. The density of
population in Himachal Pradesh is 123 persons per sq. km which is lower
than national average of 382 persons per sq. km. Sex ratio of Himachal
Pradesh is 974 females per 1000 males, which is above the national average
of 940 as per 2011 census. About 90 per cent of the population lives in
rural areas. Literacy rate in Himachal Pradesh has seen upward trend and
is 83.78 per cent as per 2011 population census of that, male literacy stands
at 90.83 per cent while female literacy is at 76.60 per cent. In actual
numbers, total literates in Himachal Pradesh stands at 5, 104,506 of which
males are 2,.791,542 and females are 2,312,964 (H.P. Census 2011).
Economic Situation in Himachal Pradesh
Himachal Pradesh has emerged as a leading economy in the country
and is also a leader in Hill Area Development, Agriculture and Horticulture
revolution. Himachal Pradesh is an ideal destination for investment in power
and tourism sectors. Responsive administration and conducive macro
economic conditions have induced a competitive environment in the
economic performance in the state of Himachal Pradesh. The economy of
the state has been progressing at a uniform pace and it is expected to achieve
a high growth rate of 7 .6 per cent in the current financial year which is
comparatively better than the national growth of 6.9 per cent (H.P. Economic
Survey, 2011-12:2).
Agriculture is the main occupation of the people of Himachal Pradesh.
It has an important place in the economy of the state. The State of Himachal
Pradesh is the only state in the country whose 89.96 per cent as per 2011
census of population lives in rural areas. Therefore, dependency on
Agriculture/Horticulture is imminent as it provides direct employment to
the workers of the state. Agriculture happens to be premier source of state
income. About 16 per cent of total GSDP comes from agriculture and its
allied sectors. Out of the total geographical area of 55.67 lakh hectares,
the area of operational holding is about 9 .68 lakh hectares and is operated
by 9.33 lakh farmers. The average holding size comes to 1.04 hectare.
Distribution of land holdings according to 2005-06, agricultural census
shows that 87 .03 per cent of the total holdings are of small and marginal
farmers, 12.54 per cent of holdings are owned by semi medium/medium
farmers only 0.43 per cent by large farmers (H.P. Economic Survey, 2011-
12:42).
Himachal Pradesh comprises of 12 districts, 52 sub-divisions, 75
development blocks, 109 tehsils and sub-tehsils and 3243 Panchayats. The
present study is carried out in Mandi district which is formed with the
merger of two princely states Mandi and Suket on 15th April, 1948, when
the state of Himachal Pradesh came into existence. The district is situated
 SOCIO-ECONOMIC IMPACT OF MGNREGA ON RURAL PEOPLE I 375
VJNOD KUMAR

between 31°13'50" and 32°04'30" north latitude and 70°37'20" and

77°23' 15" last longitude. It is bounded by Kangra on the North-West,
Hamirpur and Bilaspur in the west, Arki tehsil of Solan district in the South,
Shimla district in the South-West and Kullu district in the East. The district
has 2 main rivers viz.; the Beas and the Satluj. The river Beas enters the
district from close to Bajaura, at the boundary of Kullu and leaves the
district at sandhol. The Mandi district comprises of nine tehsils, seven
sub-tehsils, 10 community development blocks, five local urban bodies (2
Municipal committees and three Nagar Parishads), 473 Panchayats
constituting 2877 wards, 10 Panchayat Sarnities and a Zila Parishad. The
area of Mandi district is 3950 square kilometers which makes up 7 .10 per
cent of the total state area. Of the total area in the district rural area
comprised of 99.33 per cent while urban area is 0.67 per cent. The total
number of villages in the district are 3338 of which 85 per cent are habitated
and rest inhabitated the total households in the district are 182378 (Annual
Plan, 2011; 12:5).
As per 2011 Census, Mandi has a population of 999,518 in which
males and females are 496,787 and 502,731, respectively. There is change
of 10.89 per cent in the population compared to population as per 2001.
The initial provisional data suggest a density of 253 persons, per sq km in
2011.
Total area under Mandi district is of about 3,950 sq. km. Average
literacy rate of Mandi in 2011 was 82.81 compared to 75.24 in 2001. If
things are looked out at gender wise, male and female literacy is 91.51 per
cent and 74.83 per cent respectively. With regard to sex ratio, it stood at
1012 females per 1000 males compared to 2001 census figure of 1013
females per 1000 males. The average national sex ratio in India is 940
females per 1000 males according to the latest reports of census 2011
(Census of 2011: Mandi district).
The present study has been carried out in Sadar block of district Mandi
of Himachal Pradesh. Sadar block comprises of 61 Panchayats. The total
area of the block is 600.81 sq. kms. As per 2001 census, the total population
of the block is 1,14,791 persons. Of which males are 57861 and females
are 56930. It has a total number of 365 villages. The sex-ratio of the block
is 984 female per 1000 males. The total literacy rate is 73.84 per cent of
which the male literacy is 88.64 per cent and the female literacy is 65.4 per
cent (Census of 2001). It was not possible to carry out the study in all
panchayats of Sadar block due to the limited resources and time constraints
at the disposal of the researcher.Therefore, one panchayat namely Kamand
in this block of district Mandi in Himachal Pradesh has been selected for
the study purpose. The total population of Kamand Panchayat as per
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Panchayat record upto March 2011 is 2578 consisting of 1303 males and
1275 females. The selected panchayat is the first model panchayat of the
Sadar block in the performance of MGNREGA scheme in the year 2010-
2011. The number of job cards issued to registered households and the
number of households who have worked under this scheme is highest in
this panchayat as compar~d to other panchayats of this block. Further, no
substantial study of this nature has so far been attempted before in this
part of the state.
Universe and Sample of the Study:
To select a representative sample, it is necessary to have a proper
sampling frame. A complete list of all the households in the study area was
prepared by doing a door-to-door survey and also with the help of panchayat
record. The sample for the present study has been selected randomly. The
total number of households in the panchayat are 666 out of which 641
households are registered for employment under MGNREGS and have
also got the job cards in the year 2010-2011. Out of these 641 households,
503 households have worked under MGNREGS during this period and the
total population is 2578 persons. The universe of the study is all the 503
heads of the households who have worked under MGNREGS in this
selected panchayat. To keep the sample size manageable and keeping in
view the resources and time constraint at the disposal of the researcher, a
sample of one fourth (25%) i.e. 126 heads of the households has been
drawn randomly. Thus, the actual size of the sample is 126 respondents.
Methods of Data Collection
The data for the present study have been collected with the help of
primary as well as secondary sources. The primary source consists of
interviewing the respondents with the help of interview schedule, which
include both structured as well as unstructured questions related to the
different aspects of the research problem. The secondary data has been
collected with the help of record, reports, DRDA records, panchayat record,
books, magazines, newspapers, articles and website, etc. Besides this,
observation method has also been used by the researcher in order to have
a close view of the phenomenon so as to collect some additional
information.

SOCIO-ECONOMIC IMPACT OF MGNREGS ON RURAL PEOPLE

Socio-economic development refers to increase in the standard ofliving

of a nation's population associated with sustained growth from a simple,
low-income economy to a modem, high-income economy. Its scope
included the process and policies by which a nation improves the economic,
 SOCIO-ECONOMIC IMPACT OF MGNREGA ON RURAL PEOPLE I 377
VINOD KUMAR

political, and social well-being of its people. A large-scale public works

programme like MGNREGS, creates purchasing power among workers.
When those receiving tax breaks or working on MGNREGS sites spend
this additional money, they create demand for commodities. The production
of these commodities, in tum, creates demand for capital, raw materials
and workers. The extra incomes so generated cause further demand, which
again provides a stimulus to production, employ~ent and demand ... and
so on in a spiral. This demand stimulating process is called the multiplier
(Internet, 2011).
The Mahatma Gandhi National Rural Employment Guarantee Scheme
(MGNREGS) is an important strategy in the current economic context of
global economic crisis and national economic slowdown, where raising
aggregate demand is a major task for the government. Fiscal policy that
provides more wage income directly to unskilled workers in the rural areas
is likely to be much more effective in increasing aggregate incomes than
other forms of public spending (Sharma, 2009). ~
It is also increasingly recognised that the MGNREGS has the potential
to transform rural economic and social relations at many levels. It is this
capacity to engender change which is a source of strength and a weakness
for the implementation of the programme. In fact, the huge potential of the
MGNREGS has already been evident particularly in the enthusiastic
response of the local people, landless, the marginal farmers and women
workers in particular, wherever information about the programme has been
properly disseminated (Sharma, 2009:3).
Focusing on strengthening natural resource management such as
afforestation, drought proofing, flood proofing, water conservation, the
scheme has become a significant vehicle for regeneration of India's
depleting natural resource base. And it seems that in the long term natural
resource net through MGNREGS might have a huge impact on our countries
environment and gross agricultural output as it emphasises on works that
target water conservation, afforestation and drought proofing (ibid).
On the socio-economic empowerment of women (as the Act mandates
at least 33 per cent participation for women) where the MGNREGS has
led to a significant increase in women's paid work, there are likely to be
substantial social changes as well. These would be in addition to other
changes such as the decline in distress migration and the improvement in
food consumption among certain families. Not only does the MGNREGS
provide incomes directly to those women participating in it, in many states
the wage delivery mechanism is linked to the opening of a post office or
bank account. This involves the access of a much greater number of women
in institutional finance from which they have been largely excluded. Intra-
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household gender relations are also likely to be affected, but these changes
will occur over a longer period and would require a more extensive
sociological study. Nonetheless, this greater participation of women in the
MGNREGS, particularly in some states, is clearly a positive indicator that
shows the inclusive potential of programme in unanticipated ways.
The health status of a village is likely to improve through proper
implementation of MGNREGS due to regular availability of clean potable
drinking water, construction of toilets will also improve the level of
cleanliness in the village and public health status, reduction in unpaid
drudgery of women will reduce their stress and provide them more time to
relax or to work and construction of child care centres will improve general
health of children, who will receive nutritious food and clean environment.
This will reduce their expenditure on health (which is usually private
expenditure) and improve their productivity at work. Many children in
school-going-age in the village are engaged in collection of fodder, fuel
wood, water, etc., or in animal grazing. Assuring water supply at the door
step, regeneration of common lands for fuel and fodder as well as child
care centres will reduce unpaid work of children. This will enable them to
attend the school regularly. This will particularly be beneficial to girl
children, who stay back at home either to take care of younger siblings or
to help in collection of water, fodder, etc. and other household work.
Moreover, improved economic condition will encourage parents to send
their children to school (Hazra, 2009: 9).
In the light of the above discussion, an attempt has been made to analyse
the socio-economic impact of MGNREGS on the rural people with an
added emphasis on the education of the children, expenditure on food and
non-food items, improvement in the socio-economic conditions of the rural
people. Usefulness of MGNREGS scheme, impact of MGNREGS on
workers migration are other points discussed here. Further, an attempt as
has also been made to analyse as to what extent MGNREGS provided
economic independence to women, protection against poverty, help in
reducing indebtedness, help to reduce child labour in the rural areas, etc.
Income from MGNREGS in the Year 2009
The MGNREGS is to enhance livelihood security in rural areas by
providing at least 100 days of guarantee wage employment in a financifil
year to every household whose adult member volunteers to do unskilled
manual work. Table 1 shows the views of the respondents regarding the
amount they got from MGNREGS earning in the year 2009.
Table 1 indicates that the majority of the respondents (76.20%) got
between Rs. 10001to12000 from MGNREGS earning in the year 2009,
 SOCIO-ECONOMIC IMPACT OF MGNREGA ON RURAL PEOPLE I 379
VINOD KUMAR

TABLE I: VIEWS REGARDING THE AMOUNT GOT FROM

MGNREGS EARNING IN THE YEAR 2009

S.No. Amount No. of Respondents Percentage

1. Up to 2500 4 3.17
2. 2501to4500 5 3.97
3. 4501 to 6500 14 11.11
4. 6501 to 8500 4 3.17
5. 8501 to 10000 3 2.38
6. 10001 to 12000 96 76.20
Total 126 100.00

whereas 14 respondents' ( 11.11 %) earning is between Rs. 4501 to 6500 in

the year 2009. 3.97 per cent respondents' earning is between Rs. 2501 to
4500, 3.17 per cent respondents' earning is between Rs. 6501 to 8500 and
3.17 per cent respondents' earning is upto Rs. 2500 from MGNREGS in the
year 2009. Remaining 2.38 per cent respondents' earning is between Rs.
8500 to 10000 from MGNREGS in the year 2009. Thus it can be said that a
large number of respondents got between Rs. 10001 to 12000 from
MGNREGS in the year 2009.
Position of the Respondents' Income after getting Work under MGNREGS
Further, the question was asked from the respondents what is the
position of their income after getting work under MGNREGS? The
responses of the respondents is shown in Table 2.
TABLE 2: POSffiON OF THE RESPONDENTS' INCOME
AFTER GETTING WORK UNDER MGNREGS

S. No. Position No. of Percentage

Respondents
1. Considerably increased 123 97.26
2. Increased to some extent 3 2.38
3. Remained same
4. Decreased
Total 126 100.00

Table 2 shows that a large percentage (97 .62%) of the total respondents
reported that there is a considerable improvement in their income due to
MGNREGS and only 2.38 per cent of the respondents in the sample reported
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that there is some increase in their income. There is no respondent whose

income decreased or remained the same.
Whether any other Family Member ( s) also got Employment in MGNREGS?
Every adult member in the study areas, who is willing to do unskilled
manual work in the MGNREGS can work under this scheme. Further, the
respondents were asked whether any other family member (s) also got
employment in MGNREGS? Table 3 shows the views of the respondents
on this question.
TABLE 3: VIEWS OF THE RESPONDENTS REGARDING WHETHER
ANY OTHER FAMILY MEMBER(S) ALSO GOT EMPLOYMENT IN MGNREGS

S. No. Response · No. of Respondents Percentage

1. Yes 73 57.94
2. No 53 42.06
Total 126 100.00

Table 3 sh_ows that 57.94 per cent respondents reported that more than
one member of a family got employment in MGNREGS scheme, whereas
42.06 per cent respondents reported that no member of their families were
working in MGNREGS Scheme. Thus, it can be said that more than one
family members of the majority of the respondents have got employment
in MGNREGS Scheme.
Whether Children attending the School
MGNREGS income helps to improve quality of education in the rural
areas because the parents of the children are in a position to pay admission
fee, purchase books, provide tuitions to the children, buy school uniform,
bicycle, etc. Further, the question was asked from the respondents whether
the children in their families are attending the schools. Table 4 shows the
views of the respondents regarding this.
TABLE 4:WHETHER CHILDREN ARE ATTENDING THE SCHOOLS

S. No. Response No. of Respondents Percentage

1. Yes 124 98.41
2. No 2 1.59
Total 126 100.00

Table 4 indicates that a vast majority of the respondents (98.41 %) are

of opinion that the children in their families are attending the schools, and
that the children of only 1.59 per cent of the respondents were not attending
 SOCIO-ECONOMIC IMPACT OF MGNREGA ON RURAL PEOPLE I 381
VINOD KUMAR

the schools. Thus, it can be said that the children of a vast majority of the
respondents are attending the schools.
Impact of MGNREGS on Education of Children
Further, the respondents were asked that what is the impact of
MGNREGS on the education of their children? Table 5 shows the views
of the respondents in this regard.
TABLE 5: VIEWS OF THE RESPONDENTS REGARDING THE IMPACT
OF MGNREGS ON EDUCATION OF CHILDREN

S. No. Response No. of Respondents Percentage

1. No dropout of children 123 97.62
from the school
2. Change in decision for 3 2.38
opting higher education for children
Total 126 100.00

Table 5 shows that a majority of the 123 respondents (97 .62 %) revealed
that due to MGNREGS the school dropout rate has considerable declined
and 2.38 per cent of the respondents replied that due to MGNREGS there
is a change in their decision for opting higher education for children.
Impact of Expenditure on Food Items and Non-Food Items
Further, the respondents were asked that what is the impact of
expenditure on food items and non-food items? It has been found that
cent-per cent of the respondents in the sample reported that their expenditure
on food items and non-food items has increased to some extent due to their
earnings in the MGNREGS. They replied that due to MGNREGS there is
increase in their annual family income and hence their expenditure on the
education of their children and food and non-food items has increased to
some extent.
Distribution ofExpenditure from the MGNREGS Earnings in the Year 2010
The respondents were asked to specify the distribution of expenditure
from the MGNREGS earning in the year 2010. Table 6 shows the responses
of the respondents in this regard.
Table 6 reveals that majority of the respondents (85. 71 %) are o~ the
view that they spend on food and non-food items from the MGNREGS
earning whereas 35.71 per cent respondents spend on household items,
23.80 per cent respondents spend on education of the children, 21.43 per
cent respondents spend on purchase of animals (cows, sheeps, goats, etc).
Further, 15.87 per cent respondents spend on loan repayment, 11.90
per cent respondents spend on health, and 3.97 per cent respondents spend
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on social ceremonies from the MGNREGS earning in the year 2010. This
shows that majority of the respondents spend their earning from the
MGNREGS mainly on the food and non-food purchases for the households.
TABLE 6: DISTRIBUTION OF EXPENDITIJRE FROM THE
MGNREGS EARNING IN THE YEAR 2010

S. No. Amount No. of Respondents Percentage

Frequency N= 126
1. Food and non-food items 108 85.71
2. Household items 45 35.71
3. Health 15 11.90
4. Education of children 30 23.80
5. Loan repayment 20 15.87
6. Social ceremonies 5 3.97
7. Purchases of animals 27 21.43
(cows, goats, sheep, etc.)

Nam: Multiple choices are given by the respondents therefore percentages are taken out
of 126.
Further, 15.87 per cent respondents spend on loan repayment, 11.90
per cent respondents spend on health, and 3.97 per cent respondents spend
on social ceremonies from the MGNREGS earning in the year 2010. This
shows that majority of the respondents spend their earning from the
MGNREGS mainly on the food and non-food items of the households.
Change in Local Wage Rate due to MGNREGS
Further, the respondents were asked whether there has been any change
in local wage rate after MGNREGS project implementation. Table 7 shows
the views of the respondents regarding this aspect.
TABLE 7: CHANGE IN LOCAL WAGE RATE DUE TO MGNREGS

S. No. Response No. of Respondents Percentage

1. Yes 111 88.10
2. No 15 11.90
Total 126 100.00

Table 7 indicates that the majority of the respondents (88.10%) agreed

that there is change in local wage rate due to MGNREGS project
implementation. On the other hand, 11.90 per cent respondents expressed
 SOCIO-ECONOMIC IMPACT OF MGNREGA ON RURAL PEOPLE I 383
VINOD KUMAR

that they observed no change in local wage rate due to MGNREGS project
implementation. Thus, it shows that there is a change in local wage rate
due to MGNREGS project implementation.
Views about Transparency and Accountability in MGNREGS Work
The respondents were asked that what do they think about the
transparency and accountability in MGNREGS work. Table 8 shows that
majority of the respondents (98.41) said that wages are paid regularly and
through bank, on the other hand there are 1.59 per cent respondents who
replied that wages are not paid regularly and also not through the bank.
Further, the table also shows that majority of the respondents (90.48%)
are of the opinion that there is less corruption as compared to earlier
schemes, whereas 9.52 per cent respondents are of the opinion that there is
no less corruption as compared to earlier schemes.
TABLE 8: VIEWS REGARDING TRANSPARENCY AND
ACCOUNTABILITY IN MGNREGS WORK

S.No. Transparency and accountability No. of Respondents Percentage

Yes No

1. Wages are paid regularly and 124 (98.41) 2 (1.59) 126 (100.00)
through bank

2. Less corruption as compared to 114 (90.48) 12 (9.52) 126 (100.00)

earlier schemes

3. No corruption at all 85 (67.46) 41 (32.54) 126 (100.00)

4. Corruption is the same 17 (13.49) 109 (86.51) 126 (100.00)

Table 8 also reveals that majority of the respondents (67.46%) told

that there is no corruption at all in this scheme whereas 32.54 per cent
respondents have reported that there is also corruption in this scheme.
Thus, it can be said that in the MGNREGS wages are paid regularly and
through bank. There is less corruption as compared to earlier schemes and
the corruption is not the same as it used to be in the past.
MGNREGS Improves the Social-Economic Conditions of the Rural People
Further, the respondents were asked whether the social-economic
conditions of the rural people of the state have improved or not due to
MGNREGS. Table 9 shows the responses of the respondents regarding
this.
Table 9 reveals that majority of the respondents (76.19%) are of the
view that due to the MGNREGS the social-economic conditions of the
rural people has improved to a large extent, whereas 13.49 per cent
respondents are of the view that MGNREGS impact on the rural people is
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TABLE 9: MGNREGS HELPS TO IMPROVE THE SOCIAL-ECONOMIC

CONDITIONS OF THE RURAL PEOPLE

S.No. Response No. of Respondents Percentage

1. To a large extent 96 76.19
2. To some extent 17 13.49
3. To little extent 13 10.32
Total 126 100.00

to some extent and remaining 10.32 per cent respondents said that
MGNREGS helps to a little extent in improving the social-economic
conditions of the rural people.
Views of the Respondents regarding Usefulness of MGNREGS
The question was asked from the respondents about their opinion
regarding usefulness of MGNREGS Scheme? Table 10 shows the opinion
of the respondents in this regard.
TABLE IO: VIEWS OF THE RESPONDENTS REGARDING
USEFULNESS OF MGNREGS

S. No. Response No. of Respondents Percentage

1. Beneficial and good 121 96.03
2. Not beneficial and good 5 3.97
Total 126 100.00

Table 10 shows that majority (96.03%) of the respondents are of the

view that MGNREGS Scheme is very beneficial and good for the poor
rural people, whereas 3.97 per cent respondents are of the view that this
MGNREGS Scheme is not very beneficial and good for the poor rural
people. Thus, it can be said that the majority of the respondents are of the
opinion that MGNREGS Scheme is very beneficial and good for the poor
rural people of the state.
Social-economic impact of MGNREGS on Rural People
Further, the question was asked from the respondents about their view
on the social-economic impact of MGNREGS on rural people? Table 11
shows that majority of the respondents (99.21 % ) are satisfied that
MGNREGS helped in reducing women trafficking in the village and 0.79
per cent respondents did not agree with this statement. Majority of the
respondents (98.41 %) are also of the opinion that MGNREGS helped in
reducing child labour in the village.
 SOCIO-ECONOMIC IMPACT OF MGNREGA ON RURAL PEOPLE I 385
VINOD KUMAR

TABLE 11: SOCIAL-ECONOMIC IMPACT OF MGNREGS ON RURAL PEOPLE

S. No. Social-economic impact of No. of Respondents Percentage

MGNREGS

Yes No

I. Enhancing food security 121 (96.03) 5 (3.97) 126 (100.00)

2. Protection against extreme poverty 122 (96.83) .4 (3.17) 126 (100.00)

3. Helped in reducing indebtedness 124 (98.41) 2 (1.59) 126 (100.00)

4. Greater-economic independence 123 (97.62) 3 (2.38) 126 (100.00)

to women

5. Generated purchasing power in 120 (95.24) 6 (4.76) 126 (100.00)

local economy/ market

6. Helped in reducing crime 124 (98.41) 2 (l.59) 126 (100.00)

7. Helped in reducing child labour 124 (98.41) 2 (1.59) 126 (100.00)

~

8. Helped in reducing women 125 (99.21) l (0.79) 126 (100.00)

trafficking

Further, majority of the respondents (98.41 %) are of the view that

MGNREGS helped in reducing crime in the village area, whereas 1.59 per
cent of the respondents disagreed with this statement. Further, 98.41 per
cent respondents are also of the opinion that MGNREGS helped in reducing
indebtedness and 1.59 per cent respondents are not satisfied with this
statement. Further 97 .62 per cent respondents reported that MGNREGS
gives greater economic independence to women and 2.38 per cent of the
respondents have shown adverse opinion on this aspect. Further, 96.83 per
cent respondents are also of the view that MGNREGS provides some
protection against extreme poverty and majority of the respondents 96.83
per cent are also the view that MGNREGS enhances food security, where
as 3.79 per cent respondents are not satisfied with this statement. Further,
majority of the respondents (95.24%) are satisfied that MGNREGS
generated purchasing power of the rural people in local economy, whereas
4.76 per cent respondents did not agree with this statement. Thus, it can be
said that majority of the respondents are satisfied with the social-economic
impacts of MGNREGS on the rural poor people.
View of the Respondents regarding priority of Work
Further, a question was asked from the respondents regarding their
priority of work? It has been found that cent-per cent of the respondents
are of the view that they have preference for MGNREGS work. Further,
they replied that they give priority to MGNREGS work because under this
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scheme they get work atleast for 100 days in a year and that too in the
vicinity of their respective villages. They also pointed out that government
should increase the working days from the existing 100 days in a year and
it should also increase the wages of the MGNREGS workers.
Whether Conditions of the Poor have improved due to MGNREGS
Another question was asked from the respondents whether the
conditions of the poor in the villages have improved due to MGNREGS. It
has been found that cent-per cent of the respondents are of the view that
due to MGNREGS the socio-economic conditions of the poor in the village
have improved to some extent.
Main Benefits due to MGNREGS
Further, the respondents were asked to describe the main benefits
occurring in their villages to the poor people due to MGNREGS. It has
been found that majority of the respondents (88.89%) stated that the social
and economic conditions of the poor people in rural_ areas have improved
to some extent whereas 11.11 per cent respondenrs did not agree with this
statement.
Impact of MGNREGS Work on the Rural Poor People
The question was asked from the respondents that what is the impact
of MGNREGS work on the rural poor people. Table 12 shows the responses
of the respondents in this regard.
TABLE 12: VIEWS OF THE RESPONDENTS REGARDING THE IMPACT
OF MGNREGS WORK ON THE RURAL POOR PEOPLE

s. Impact of MGNREGS work No. of Respondents Percentage

No. Frequency N= 126

1. Increase in the number of school children 97 76.98

2. Improvement in economic conditions 85 67.46
of the family

3. Decrease in migration 50 39.68

4. Improvement in health status 65 51.59
5. Improvement in standard of living 75 59.52
6. Decrease in alcoholism 39 30.95

NoTE: Multiple choices are permitted.

Table 12 shows that 76.98 per cent of the respondents told that due to
the MGNREGS work the enrollment of children in the school has increased,
67.46 per cent of the respondents replied that due to MGNREGS works
the economic condition of the family has improved, 59.52 per cent of the
 SOCIO-ECONOMIC IMPACT OF MGNREGA ON RURAL PEOPLE I 387
VINOD KUMAR

respondents reported that due to MGNREGS works the standard of living

in the village has improved, 51.59 per cent of the respondents have said
that due to MGNREGS work there is improvement in the health status of
the rural people, 39.68 per cent are of the view that due to MGNREGS
works there is decrease in migration of the rural people to urban places
and 30.95 per cent of the respondents say that due to MGNREGS work
there is decrease in alcoholism among the rural people.
Impact of MGNREGS on the Workers Migration
Migration has negative and positive impact on the lives of the migrants.
On the one hand, it offers vast economic opportunities, helps in removing
the abject poverty and improve the socio-economic conditions of the people.
On the other hand, the workers have to face many difficulties at work
place in terms of the denial of basic facilities like sanitation, drinking water
and proper housing. In this regard, the respondents were asked about the
impact of MGNREGS on the workers migration. It has been found that
cent per cent of the respondents are of the view that in-migration of outside
workers in their villages has decreased due to MGNREGS and out-migration
of the workers from their villages has also decreased to a large extent.
Impact of MGNREGS on the Wage Earners
As we all know that one of the main objectives of the MGNREGS is to
provide 100 days wage employment to the job card holders. Therefore, it
is important to know that what impact this programme has made on wage
earners. It has been found that cent-per cent respondents reported that
economic conditions of the wage earners have improved to some extent.
Moreover, the workers need not to go outside their villages to seek work.
Further, it has been found that majority of the respondents (80.95%)
reported that due to MGNREGS the workload of the PRis has increased
because the panchayats have to maintain various MGNREGS records and
due to MGNREGS the rural people's faith in the panchayats has increased.
It has been also been found that cent-per cent of the respondents have
reported that agriculture productivity has increased due to the provision of
irrigation facilities through MGNREGS. It has also been found that cent-
per cent of the respondents have said that access to market of the people
have increased due to connectivity because connectivity provide linkages
with the market.
Further, the respondents were asked about the impact of MGNRE~S
on sanitation and environment especially through the forestation scheme.
It has been found that majority of the respondents (84.13%) reported that
due to MGNREGS the sanitation and environment conditions have
improved a lot, which has a positive impact of the health of residents. On
the other hand 15 .87 per cent of the respondents said that there is no change
in this regard.
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VOL UX, NO. 2, APRIL-JUNE 2013

Empowerment of Women
Further, the respondents were asked about the impact of MGNREGS
on the empowerment of women? All the respondents reported that women
have become economically self dependent and earning some money for
their livelihood after introduction of this employment scheme. Hence, the
empowerment of women has taken place.
Impact of MGNERGA at the Village and Panchayat Level
Further, the respondents were asked what on the whole is the impact
of MGNREGS on their village and panchayat? It has been found that
majority of the respondents (67.46%) are of the view that the social-economic
condition of the rural people have been improved to some extent whereas
20.63 per cent respondents are of the opinion that women empowerment has
also been witnessed by them after MGNREGS scheme in their area has been
implemented and remaining 11.91 per cent respondents are of the view that
MGNREGS scheme has provided protection against extreme poverty, helped
in economic independence to women, reduced ~rime and child labour in
their villages. 1bis shows that MGNREGS has positive impact at the village
and panchayat level as a whole.

CONCLUSION

To sum up, it may be concluded that MGNREGS is playing the role of

a catalyst in the rural economy. It is playing an important role in the overall
development of the rural area. MGNREGS addresses itself mainly to
working people and their fundamental rights to live with dignity. 1bis is
one of the greatest experiments undertaken by the Government of India to
eradicate rural poverty. It has provided protection against extreme poverty,
helped in economic independence of women, reduced crime and child labour
in the rural areas. The socio-economic conditions of the rural people has
improved to a great extent due to MGNREGS. The programme has immense
potential to provide better livelihood opportunities to poor rural people,
focuses on poverty alleviation. A notable aspect of this programme is the
participation of large number of rural women who have sought work under
MGNREGS. The scheme is poised to progress from a mere wage employment
to sustainable development programme. The success of MGNREGS however,
will depend on people's realisation of the Act as a right.

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