Economic Survey: Aadhaar Aided MGNREGS Beneficiaries

By Moderator July 5, 2019 13:49

The economic survey utilized the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) as a contextual analysis to show the advantages of the utilization of innovation in improving focusing on and furthermore proficiency in the welfare plans.

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  • It prescribes that the digital technology and the JAM troika — Jan Dhan, Aadhaar and Mobile — be extended to the next welfare plans.
  • The Survey refers to information on the practicality of the payment installments, laborer turnout, request and furthermore the supply of work under the plan when the Aadhaar-linked payments (ALP) were executed as confirmation for its advantages.
    • The information demonstrates that in 2014-15, under 27% of pay installments were created approx 15 days. The immediate advantage transfers were introduced two years after the fact. Constantly 2018-19, in excess of 90 percent of pay installments were created approx in 15 days.
  • The Economic Survey also analyzed the MGNREGS execution in squares influenced by the drought versus different squares, utilizing drought as an intermediary for trouble.
    • In drought-affected blocks, the number of people requesting work expanded more than 20 percent after the execution of the ALP, while there was no impact on other blocks.
  • A similar trend is seen in the supply of work.
    • The muster rolls, that are worksite participation registers, demonstrate a 19 percent expansion after ALP execution in many blocks. In dry spell influenced squares, muster rolls expanded by 44 percent.

Also read: Economic Survey 2018-2019 Analysis

“It appears that before the implementation of the ALP, the rural poor treated MGNREGS as an option to earn the additional income during good times rather than a shock absorber during the bad times. This actually defeated the purpose of the program. The post-implementation of the ALP, there is a reversal of trend, wherein an increase in demand for the work under MGNREGS is observed in drought-affected areas,” says the Survey, arguing that effective targeting has been possible because of ALP.


  • The economic Survey suggests that the demand for work under MGNREGS may be used to develop a real-time indicator of the distress at the granular district or panchayat level.
    • The current datasets on rural distress such as the NSSO survey or district-level GDP data are often years out of date, and also cannot be used to provide the assistance at the time needed.
    • By correlating information on MGNREGS demand with other data, a dashboard tool can be used to signal local distress and enable policymakers to alleviate it in a timely manner.
  • The Survey also recommends that the other welfare schemes implement the lessons learned from the Aadhaar linkages in MGNREGS.
    • The scholarships, pensions and subsidies for food, kerosene, and also the gas cylinders should be next in line to implement the Aadhaar-based payments

Also read: Economic Survey On Minimum Wage System

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By Moderator July 5, 2019 13:49