THE GIST of Editorial for UPSC Exams : 05 June 2020 (MGNREGA in need (Indian Express))

MGNREGA in need (Indian Express)

Mains Paper 3:Economy
Prelims level: MGNREGA
Mains level: Role of MGNREGA in an Economy

Context:

• A record 4.89 crore persons belonging to 3.44 crore households sought work under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in May.
• This is against 3.18 crore persons from 2.26 crore households for the same month last year, when large parts of India were experiencing drought-like conditions.
• The current surge in MGNREGA work demand reflects a drought, not of water, but of jobs and incomes.
• And it seems to be coming mainly from migrant workers returning to their villages from cities and industrial centres post the COVID lockdown.

Labour exporting states:

• Proof of it is the states where ................................................................................

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Widening the scope of scheme:

• The MGNREGA has been generally viewed as a scheme that provides employment during the lean period for agriculture, thereby reducing seasonal labour migration from rural to urban areas.
• The demand for work, too, typically peaks in May-June before falling in the subsequent months coinciding with the main kharif cropping season.
• But this conventional pattern may not hold in the present scenario, where the primary demand driver will not be the landless agricultural labourer who would have little work after the kharif or rabi crop has been harvested.
• If the laid-off auto worker from Gurgaon-Manesar or erstwhile hotel employee in Mumbai is the one seeking employment under MGNREGA — and there is no way to gainfully engage them in agriculture — the scheme’s scope will have to be widened.
• To start with, the number of days of guaranteed employment to adult members of any rural household needs to be expanded beyond the existing 100 days.
• The returning migrant workers may, at some point, want to go back to jobs that paid better. But those jobs aren’t going to come back soon either.

Rethink on the MGNREGA’s basic design:

• This is where a rethink on the MGNREGA’s basic design might be called for without compromising its objective.
• If the idea is to provide work...............................................................................

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Conclusion:

• In times of wide and deep economic distress, a rethink on its design might be called for, without compromising its purpose.

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Prelims Questions:

Q.1)With reference to the Micro, Small and Medium Enterprises (MSMEs), consider the following statements:
1. A company with up to Rs 200 crore investments and up to Rs 500 crore turnover is classified as a medium enterprise.
2. Proposal for equity infusion of Rs. 50,000 crores for MSMEs through fund of funds has also been approved.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer.............................

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Mains Questions:
Q.1)Describe the reasons behind to widening the scope of MGNREGA.