MGNREGA wage to increase; may push inflation further
Updated: Feb 03, 2014 02:38:32pm
New Delhi, Feb 3 (KNN) The government will enhance the wages for rural labourers under the MGNREGA Scheme from April-1 – a development which is sure to have an impact on the overall wage cost.
The announcement for enhancing the wages was made by rural development minister Jairam Ramesh yesterday, who said that the MGNREGA wages are linked to the consumer price index.
In its recent credit policy and various other research papers, the RBI has been emphasising how the wage pressure is showing impact on the overall inflation.
Different industries like textiles are also facing labour shortage because of the MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) scheme.
“There is need for parity in the MGNREGA wage rate and the Minimum Wage, where the former is lower and there are 14 such States like Bihar Jharkhand, West Bengal and Rajasthan where rural job wage is lower than minimum wage,” the Minister said.
The Minister also exhorted the officials to motivate and help the small and marginal farmers to undertake land levelling and irrigation schemes on their land under MGNREGA and lamented that only 10 per cent farmers have so far benefitted from this provision.
He also called upon officials to bring MGNREGA workers under Rashtriya Swasthya Bima Yojana as only 15 to 20 per cent such workers are at present covered under the scheme.
Ramesh said that 2014-15 should be celebrated as Convergence Year for MGNREGA.
Speaking on the occasion Minister of State for Rural Development Pradeep Jain Aditya said that MGNREGA has brought about a revolution in the rural India and stopped the distress migration from rural to urban areas.
He said in the world’s biggest ever rural job scheme, this year more than 3 crore 80 lakh families have benefitted so far.
Meanwhile, Minister of State for Rural Development Lal Chand Kataria said, MGNREGA has led to creation of durable assets, besides recharging ground water through watershed schemes thus helping in expansion of irrigated land. He said, for its more effective implementation, the Ministry of Rural Development has started a process of convergence among different departments and Ministries.
Member Planning Commission Mihir Shah, said that in the last three to four years MGNREGA has been made more flexible and about 30 new works were added as per state specifications. He said, social audit has checked corruption to a large extent and with full implementation of Direct Benefits Transfer, the role of middlemen will be abolished.
According to Secretary, Rural Development L C Goyal, the Ministry is on the verge of taking new initiatives for the rural job scheme, which has already provided dignity and self-respect to women in rural areas. He said, MGNREGA has deepened the democratic process by strengthening Gram Panchayats. (KNN/ES)
The announcement for enhancing the wages was made by rural development minister Jairam Ramesh yesterday, who said that the MGNREGA wages are linked to the consumer price index.
In its recent credit policy and various other research papers, the RBI has been emphasising how the wage pressure is showing impact on the overall inflation.
Different industries like textiles are also facing labour shortage because of the MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) scheme.
“There is need for parity in the MGNREGA wage rate and the Minimum Wage, where the former is lower and there are 14 such States like Bihar Jharkhand, West Bengal and Rajasthan where rural job wage is lower than minimum wage,” the Minister said.
The Minister also exhorted the officials to motivate and help the small and marginal farmers to undertake land levelling and irrigation schemes on their land under MGNREGA and lamented that only 10 per cent farmers have so far benefitted from this provision.
He also called upon officials to bring MGNREGA workers under Rashtriya Swasthya Bima Yojana as only 15 to 20 per cent such workers are at present covered under the scheme.
Ramesh said that 2014-15 should be celebrated as Convergence Year for MGNREGA.
Speaking on the occasion Minister of State for Rural Development Pradeep Jain Aditya said that MGNREGA has brought about a revolution in the rural India and stopped the distress migration from rural to urban areas.
He said in the world’s biggest ever rural job scheme, this year more than 3 crore 80 lakh families have benefitted so far.
Meanwhile, Minister of State for Rural Development Lal Chand Kataria said, MGNREGA has led to creation of durable assets, besides recharging ground water through watershed schemes thus helping in expansion of irrigated land. He said, for its more effective implementation, the Ministry of Rural Development has started a process of convergence among different departments and Ministries.
Member Planning Commission Mihir Shah, said that in the last three to four years MGNREGA has been made more flexible and about 30 new works were added as per state specifications. He said, social audit has checked corruption to a large extent and with full implementation of Direct Benefits Transfer, the role of middlemen will be abolished.
According to Secretary, Rural Development L C Goyal, the Ministry is on the verge of taking new initiatives for the rural job scheme, which has already provided dignity and self-respect to women in rural areas. He said, MGNREGA has deepened the democratic process by strengthening Gram Panchayats. (KNN/ES)
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