MGNREGA in the Times of COVID-19 and Beyond: Can India do More with Less?

Abstract

Covid-19 has ushered in a renewed focus on health, sanitisation and, in unexpected ways, on the need for productive employment opportunities in rural India. MGNREGA, the rural employment guarantee programme, has had a mixed track record in terms of providing adequate employment to those who need it the most, the quality of asset creation and adequacy of wages offered. This paper makes a case for reorienting a small portion of MGNREGA spending to create micro-entrepreneurs out of the ‘reverse migrating’ masons, electricians, plumbers and others in rural areas who can directly contribute to augmenting health and sanitization infrastructure in the likely new normal. This will provide relief to those whose livelihoods have been severely impacted and eventually lower dependence on public finances. We propose approval of a new work type for sanitization works without any hard asset creation under MGNREGA and roping in the private sector for its project management skills to quickly skill up the returning migrants as well as to match work with workers on an ongoing basis.