Mahatma Gandhi National Rural Employment Guarantee Act

The potentialities of individual assets, created under category B of Schedule I of the Mahatma Gandhi National Rural Employment Guarantee Act, for enhancing income of rural households and increasing productivity of land and agriculture are examined. The beneficiaries of individual assets gained, through the creation of new sources of livelihoods, additional utility of their existing assets and a rise in their income levels. The community also gained by an increase in food security through the enhanced productivity of land and agriculture, mainly through increase in crop acreage, yields per acre, and crop diversification. However, a proactive selection of landless households and diversification of individual assets is required to make the benefits of assets creation inclusive.

This study attempts to quantify the impact of the Mahatma Gandhi National Rural Employment Guarantee Act programme on the level and pattern of consumption expenditure of rural households at the national level using a difference-in-differences method. The findings indicate an increase in the monthly per capita consumption expenditure of participant households and a change in their consumption patterns with the share of high-value and nutrient-rich food in their consumption basket going up. Further the participant households have also smoothened their consumption by investing in assets such as durable goods.

More than 1,00,000 wells were sanctioned for construction under the Mahatma Gandhi National Rural Employment Guarantee Act in Jharkhand during the last few years. This study evaluates the outcome of this well-construction drive through a survey of nearly 1,000 wells in 24 randomly selected gram panchayats. A majority of sanctioned wells (60% with parapet and 70% without) were completed at the time of the survey. Nearly 95% of completed wells are being utilised for irrigation, leading to a near tripling of agricultural income of those in the command area. The real rate of return from these wells in Jharkhand is estimated to be close to 6%, a respectable figure for any economic investment. However, well construction involves some out-of-pocket expenses and this investment is risky: nearly 12% of the wells were abandoned midway.