NREGA – Impact, MgNREGA – Impact

NREGA – Impact,

Few days back, I was discussing about NREGA and its impact on contractor man-power at our manufacturing unit at Ankleshwar.

Later I decided to do a small analysis of my own.

Majority of contractor man-power at our site comes from Uttar Pradesh, Bihar and Orissa so I decided to study the y-o-y impact of NREGA on these 3 states.

So here is the month-wise comparison of the No. of households employed under NREGA in UP.

Observations

1. For every month in 2009-10 as compared to 2008-09, there was a steady rise in employment (except for a minor decrease in May).
2. In both the financial years, from April to March there is a steady rise in employment. But when we look at March 2009 and April 2009, there is a huge drop in employment from 2.1 million to 0.4 million. In UP most demand of employment is in the months of January to March.
3. Highest households under the scheme were observed in last quarter of the financial year, with the peak at March. (As expected, funds have to be consumed by the end of the year)

Key figures

1. Overall employment increased by 28% in 2009-10 (as compared to 2008-2009).
2. On an average 16.7 lac people were employed per month in UP (2009-2010). Note population of UP is 16.6 crore, so all in all 1% of the UP’s population benefited out of NREGA.
3. Highest employment in March 2010 – 28 lac (for the year 2009-2010).
4. In 2009-2010, total 2 crore Man-days were generated under NREGA.

Now when we look at the State of Bihar for the very same period, the observations are completely different.

Observations

1. For every month in 2009-10 as compared to 2008-09, there was a steep fall in employment (except for the month of April).
2. In 2009-10, the number of household employed rises from April to June and then decreases with the bottom in October and then steadily rises till Jan and then fluctuates thereafter. In Bihar most demand of employment is in the months of May to July and December to March.

Key figures

1. Overall beneficiaries decreased in Bihar by 33% in 2009-10 (as compared to 2008-2009).
2. On an average 6.6 lac people were employed per month in Bihar (2009-2010). Note population of Bihar is 8.3 crore, so all in all 0.8% of the Bihar’s population benefited out of NREGA.
3. Highest in June 2009 – 9.3 lac (for the year 2009-2010).
4. In 2009-2010, total 80 lac Man-days were generated under NREGA.

Orissa

Observations

1. For 2008-09 and 2009-10, on month basis the employment numbers followed each other very closely till November and then suddenly there is a sharp decrease in beneficiary under NREGA for the period of December to March.

Key figures

1. Overall beneficiaries decreased in Orissa by 37% in 2009-10 (as compared to 2008-2009).
2. On an average 3.2 lac people were employed per month in Orissa (2009-2010). Note population of Orissa is 3.7 crore, so all in all 1.0% of the Orissa’s population benefited out of NREGA (A strange similarity among all the three states).
3. Highest in November 2009 – 6.4 lac (for the year 2009-2010).
4. In 2009-2010, total 38 lac Man-days were generated under NREGA.

For those who don’t know about NREGA

NREGA has 3 basic aims:

1) NREGA is designed as a safety net to reduce migration by rural poor households in the lean period
2) A hundred days of guaranteed unskilled manual labour provided when demand at minimum wage
3) Works focused on water conservation, land development & drought proofing

Process of NREGA is something like this.

Infer your own conclusions!

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