India | National Rural Employment Guarantee Act is a drain critics say

Standing on a patch of arid, degraded land, 100 kilometers from southern Bangalore city, Ramapal, a member of the gram panchayat (local village administration), points to a roughly-dug canal feeding a narrow belt of green cultivation.

“We cannot do without the government’s cash-for-work program,” he told Inter Press Service. “We are happy with the National Rural Employment Guarantee Act (NREGA) which gives us an assured income, but we want more work.”

The canal took 29 village individuals 14 days to build, paid for by the government under NREGA, the world’s largest social welfare scheme, with a budgetary allocation of US$15.02 billion for the 2011-2013 period. Total funding for NREGA since its inception in 2005 has crossed $29 billion.

The government says NREGA has so far provided over 10.1 million jobs to 550 million rural poor households. The scheme, set up by the ruling Congress party-led United Progressive Alliance coalition, helped return the party to power in the 2009 general elections…

Critics say NREGA’s public expenditure is a drain on India’s economy, besides affecting industry by pulling away its labor force and promoting a “welfare ethic”.

But, villagers in Dasarahalli and its surrounding areas are united in holding on to NREGA as a straw of hope to earn an income.

“If NREGA is not there, then we can close the gram panchayat,” said Rajappa, a member from one village where no wages have been paid in the last two months.

“It is way too much to expect quick results in NREGA,” said Jojo John of the Foundation for Ecological Security, a major non-government organization which helps panchayats build capacity to work with NREGA.

“Despite all its faults, NREGA has a very strong ‘rights’ component where the poor can demand work and access development,” said John. “We do need NREGA.”

Meanwhile, at Dasarahalli village, Venkateshappa, 55, is expecting good returns on his cabbage, maize and ragi (finger millet), grown with the help of water from a canal dug by the villagers adjoining his farm.

“We have chosen the bigger landholders because their lands are arable, whilst others own rocky fields – we will take those up later,” said Ramapal…

Source:

Read More @ Asia Times Online :: India’s job scheme under strain.

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