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Covid-19: Welfare Schemes that work

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June 20, 2020

What is the issue?

  • There is a sharp impact of the pandemic and the successive stages of the lockdown on employment and income.
  • However, the recent experience with the pandemic suggests that the older schemes retain their utility and remain essential.

How is MGNREGS helping?

  • The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is a demand-based scheme.
  • MGNREGS provides 100 days of guaranteed wage employment to rural unskilled labour.
  • Recently, it has seen a considerable upturn in the number of person-hours of work for which wages are due.
  • In May 2020, the number of person-days of work generated was 5% higher than the initial target.
  • In May 2019, for comparison, it was 10% lower.
  • So, the government has done well to increase allocation on this.
  • The increased demand may not be only due to the economic shock in areas with a greater uptake of the MGNREGS.
  • It may be due to the reason that many areas will have received reverse migration from urban areas.
  • These returned migrants will need some form of employment.
  • Pending the development of real jobs, the MGNREGS is necessary to play a bridging role.

What could be done regarding MGNREGS?

  • The demand for MGNREGS wages is chronically higher than the supply due to inefficiencies in implementation.
  • Therefore, the increase in wages under the scheme by Rs 20 is the minimum that could have been expected.
  • The government must also move faster to settle the outstanding dues that are with the state governments on this account.

How did the PDS help?

  • The Public Distribution System (PDS) has clearly played a crucial role in preventing the spread of hunger across affected areas.
  • This is not to say that it does not continue to have holes.
  • Around 500 million Indians do not have cards under the National Food Security Act, and not all of them are middle-class.
  • The government must take action on several fronts to ensure the PDS continues to serve as effective relief.

What could be done regarding PDS?

  • Doubling the food rations can be sustained a little longer - at least till the harvest.
  • If universalising benefits is deemed too dangerous, then for this same length of time some other form of temporary access to the PDS should be devised — perhaps temporary ration cards.
  • States that are suffering the brunt of reverse migration should receive additional food grain access from central stores.
  • Fortunately, India has a vast reserve of food grain and there is no point trying to conserve it in times like these.

What is the conclusion?

  • These legacy programmes continue to have many problems.
  • They are not as efficient and corruption-free as many would like.
  • But the government has done well to use them to provide relief.
  • It should top up the funds and resources they need so that they continue to function as India returns to normalcy.

 

Source: Business Standard

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