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In the recently concluded Monsoon Session of Parliament , the Parliamentary Standing Committee on Rural Development released a report on the implementation of the Mahatma Gandhi National Rural Development Act, 2005 (MGNREGA).  This blog provides a brief introduction to the key provisions of MGNREGA , followed by an overview of the major findings and recommendations of the Standing Committee.

I. MGNREGA: A brief introduction

A. Objectives: MGNREGA, which is the largest work guarantee programme in the world, was enacted in 2005 with the primary objective of guaranteeing 100 days of wage employment per year to rural households.  Secondly, it aims at addressing causes of chronic poverty through the 'works' (projects) that are undertaken, and thus ensuring sustainable development.  Finally, there is an emphasis on strengthening the process of decentralisation through giving a significant role to Panchayati Raj Institutions (PRIs) in planning and implementing these works.

B. Key features:

  • Legal right to work: Unlike earlier employment guarantee schemes, the Act provides a legal right to employment for adult members of rural households.  At least one third beneficiaries have to be women.  Wages must be paid according to the wages specified for agricultural labourers in the state under the  Minimum Wages Act, 1948, unless the central government notifies a wage rate (this should not be less than Rs 60 per day).  At present, wage rates are determined by the central government but vary across states, ranging from Rs 135 per day to Rs 214 per day.
  • Time bound guarantee of work and unemployment allowance: Employment must be provided with 15 days of being demanded failing which an ‘unemployment allowance’ must be given.
  • Decentralised planning: Gram sabhas must recommend the works that are to be undertaken and at least 50% of the works must be executed by them.  PRIs are primarily responsible for planning, implementation and monitoring of the works that are undertaken.
  • Work site facilities: All work sites should have facilities such as crèches, drinking water and first aid.
  • Transparency and accountability: There are provisions for proactive disclosure through wall writings, citizen information boards, Management Information Systems and social audits.  Social audits are conducted by gram sabhas to enable the community to monitor the implementation of the scheme.
  • Funding:  Funding is shared between the centre and the states.  There are three major items of expenditure – wages (for unskilled, semi-skilled and skilled labour), material and administrative costs.  The central government bears 100% of the cost of unskilled labour, 75% of the cost of semi-skilled and skilled labour, 75% of the cost of materials and 6% of the administrative costs.

MGNREGA was implemented in phases, starting from February 2006, and at present it covers all districts of the country with the exception of those that have a 100% urban population.  The Act provides a list of works that can be undertaken to generate employment related to water conservation, drought proofing, land development, and flood control and protection works.  Table 1 provides information regarding employment generation and expenditure under MGNREGA.

Table 1: MGNREGA: Key indicators

Year

Number of households provided employment (in crore)

Average number of person days of work per household

Total Expenditure (in lakh)

2006-07

2.10

43

8823.35

2007-08

3.39

42

15856.88

2008-09

4.51

48

27250.10

2009-10

5.25

54

37905.23

2010-11

5.49

47

39377.27

2011-12*

4.99

43

 38034.69

2012-13**

4.25

36

 28073.51

Source: Standing Committee on Rural Development; PRS. Note: *Provisional ** As on 31.01.2013

II. Findings and Recommendations of the Standing Committee on Rural Development

A. Achievements: The Standing Committee highlighted several achievements of MGNREGA in the seven years of its implementation, especially:

  • Ensuring livelihood for people in rural areas.
  • Large scale participation of women, Scheduled Castes and Scheduled Tribes (SCs/STs) and other traditionally marginalised sections of society.  SCs/STs account for 51% of the total person-days generated and women account for 47% of the total person-days generated.
  • Increasing the wage rate in rural areas and strengthening the rural economy through the creation of infrastructure assets.
  • Facilitating sustainable development, and
  • Strengthening PRIs by involving them in the planning and monitoring of the scheme.

B. Challenges: However, the Committee found several issues with the implementation of the scheme. As Table 1 (above) shows, the average number of days of employment provided to households has been lower than the mandated 100 days, and has been decreasing since 2010-11. Key issues that the Committee raised include

  • Fabrication of job cards: While as many as 12.5 crore households have been issued job cards out of an estimated 13.8 crore rural households ( as per the 2001 census), there are several issues related to existence of fake job cards, inclusion of fictitious names, missing entries and delays in making entries in job cards.
  • Delay in payment of wages: Most states have failed to disburse wages within 15 days as mandated by MGNREGA.  In addition, workers are not compensated for a delay in payment of wages.
  • Non payment of unemployment allowances: Most states do not pay an unemployment allowance when work is not given on demand.  The non-issuance of dated receipts of demanded work prevents workers from claiming an unemployment allowance.
  • Large number of incomplete works: There has been a delay in the completion of works under MGNREGA and inspection of projects has been irregular.  Implementing agencies were able to complete only 98 lakh works out of 296 lakh works.  As Table 2 shows, a large percentage of works remain incomplete under MGNREGA and the work completion rate appears to be decreasing in recent years.

Table 2: Work completion rate

Year

Work completion rate (%)

2006-07

46.34

2007-08

45.99

2008-09

43.76

2009-10

48.94

2010-11

50.86

2011-12*

20.25

2012-13*

15.02

Total                  33.22

Source: Standing Committee on Rural Development. Note: * As on 30.01.2013

  • Other key challenges include poor quality of assets created, several instances of corruption in the implementation of MGNREGA, and insufficient involvement of PRIs.

C. Recommendations: The Committee made the following recommendations, based on its findings:

  • Regulation of job cards: Offences such as not recording employment related information in job cards and unlawful possession of job cards with elected PRI representatives and MGNREGA functionaries should be made punishable under the Act.
  • Participation of women: Since the income of female workers typically raises the standard of living of their households to a greater extent than their male counterparts, the participation of women must be increased through raising awareness about MGNREGA.
  • Participation of people with disabilities: Special works (projects) must be identified for people with disabilities; and  special job cards must be issued and personnel must be employed to ensure their participation.
  • Utilisation of funds:  The Committee found that a large amount of funds allocated for MGNREGA have remained unutilised.  For example, in 2010-11, 27.31% of the funds remained unutilised.  The Committee recommends that the Department of Rural Development should analyse reasons for poor utilisation of funds and take steps to improve the same.  In addition, it should initiate action against officers found guilty of misappropriating funds under MGNREGA.
  • Context specific projects and convergence: Since states are at various stages of socio-economic development, they have varied requirements for development.  Therefore, state governments should be allowed to undertake works that are pertinent to their context.  There should be more emphasis on skilled and semi-skilled work under MGNREGA.  In addition, the Committee recommends a greater emphasis on convergence with other schemes such as the National Rural Livelihoods Mission, National Rural Health Mission, etc.
  • Payment of unemployment allowance: Dated receipts for demanded work should be issued so that workers can claim unemployment allowance.  Funds for unemployment allowance should be met by the central government.
  • Regular monitoring: National Level Monitors (NLMs) are deployed by the Ministry of Rural Development for regular and special monitoring of MGNREGA and to enquire into complaints regarding mis-utilisation of funds, etc.  The Committee recommends that the frequency of monitoring by NLMs should increase and appropriate measures should be taken by states based on their recommendations.  Additionally, social audits must mandatorily be held every six months.  The Committee observes that the performance of MGNREGA is better in states with effective social audit mechanisms.
  • Training of functionaries: Training and capacity building of elected representatives and other functionaries of PRIs must be done regularly as it will facilitate their involvement in the implementation of MGNREGA.

The National Education Policy (NEP) 2020 was released on July 30, 2020.  It will replace the National Policy on Education, 1986.  Key recommendations of the NEP include: (i) redesigning the structure of school curriculum to incorporate early childhood care and education, (ii) curtailing dropouts for ensuring universal access to education, (iii) increasing gross enrolment in higher education to 50% by 2035, and (iv) improving research in higher education institutes by setting up a Research Foundation.  In this blog, we examine the current status of education in the country in view of some of these recommendations made by the NEP.

Universal access to Education

The NEP states that the Right to Education Act, 2009 has been successful in achieving near universal enrolment in elementary education, however retaining children remains a challenge for the schooling system.  As of 2015-16, Gross Enrolment Ratio was 56.2% at senior secondary level as compared to 99.2% at primary level.  GER denotes enrolment as a percent of the population of corresponding age group.  Further, it noted that the decline in GER is higher for certain socio-economically disadvantaged groups, based on: (i) gender identities (female, transgender persons), (ii) socio-cultural identities (scheduled castes, scheduled tribes), (iii) geographical identities (students from small villages and small towns), (iv) socio-economic identities (migrant communities and low income households), and (v) disabilities.  In the table below, we detail the GER in school education across: (i) gender, and (ii) socio-cultural identities.  

Table 1: GER in school education for different gender and social groups (2015-16)

Level

Male

Female

SC

ST

All

Primary (I-V) 

97.9%

100.7%

110.9%

106.7%

99.2%

Upper Primary (VI-VIII) 

88.7%

97.6%

102.4%

96.7%

92.8%

Secondary (IX-X) 

79.2%

81%

85.3%

74.5%

80%

Senior Secondary (XI-XII) 

56%

56.4%

56.8%

43.1%

56.2%

Sources: Educational Statistics at Glance 2018, MHRD; PRS.

Data for all groups indicates decline in GER as we move from primary to senior secondary for all groups.  This decline is particularly high in case of Scheduled Tribes.  Further, we analyse the reason for dropping out from school education.  Data suggests that the most prominent reason for dropping out was: engagement in domestic activities (for girls) and engagement in economic activities (for boys). 

Table 2: Major reasons for dropping out (Class 1-12) for 2015-16

Reason for dropping out

Male

Female

Child not interested in studies 

23.8%

15.6%

Financial Constraints 

23.7%

15.2%

Engage in Domestic Activities 

4.8%

29.7%

Engage in Economic Activities 

31.0%

4.9%

School is far off 

0.5%

3.4%

Unable to cop-up with studies 

5.4%

4.6%

Completed desired level/ Class 

5.7%

6.5%

Marriage

 

13.9%

Other reasons

5.1%

6.2%

Note: Other reasons include: (i) timings of educational Institution not suitable, (ii) language/medium of Instruction used unfamiliar, (iii) inadequate number of teachers, (iv) quality of teachers not satisfactory, (v) unfriendly atmosphere at school. For girl students, other reasons also include: (i) non-availability of female teachers, (ii) non-availability of girl’s toilet.
Sources: Educational Statistics at Glance 2018, MHRD; PRS.

The NEP recommends strengthening of existing schemes and policies which are targeted for such socio-economically disadvantaged groups (for instance, schemes for free bicycles for girls or scholarships) to tackle dropouts.   Further, it recommends setting up special education zones in areas with significant proportion of such disadvantaged groups.  A gender inclusion fund should also be setup to assist female and transgender students in getting access to education. 

Increasing GER in Higher Education to 50% by 2035

The NEP aims to increase the GER in higher education to 50% by 2035.  As of 2018-19, the GER in higher education in the country stood at 26.3%.  Figure 2 shows the trend of GER in higher education over the last few years.  Note that the annual growth rate of GER in higher education in the last few years has been around 2%.    

Figure 1: GER in Higher Education (2014-15 to 2018-19)

image                                                                                                     

 

 

 

 

 

Sources: All India Survey on Higher Education, MHRD; PRS.

Table 3: Comparison of GER (higher education) with other countries

Country

GER (2017-18)

India 

25%

Brazil

51%

China

49%

Indonesia

36%

South Africa

22%

Pakistan

9%

Germany

70%

France 

66%

United Kingdom

60%

Sources: UNESCO; PRS.

The NEP recommends that for increasing GER, capacity of existing higher education institutes will have to be improved by restructuring and expanding existing institutes.  It recommends that all institutes should aim to be large multidisciplinary institutes (with enrolments in thousands), and there should be one such institution in or near every district by 2030.   Further, institutions should have the option to run open distance learning and online programmes to improve access to higher education.  

Foundational literacy and numeracy

The NEP states that a large proportion of the students currently enrolled in elementary school have not attained foundational literacy and numeracy (the ability to read and understand basic text, and carry out basic addition and subtraction).  It recommends that every child should attain foundational literacy and numeracy by grade three.  

Table 4 highlights the results of the National Achievement Survey 2017 on the learning levels of students at Grade 3 in language and mathematics.  The results of the survey suggest that only 57% students in Grade 3 are able to solve basic numeracy skills related to addition and subtraction.  

Table 4: NAS results on learning level of Grade-3 students

Learning level (Grade 3)

Percentage of students

Ability to read small texts with comprehension (Language)

68%

Ability to read printed scripts on classroom walls such as poems, posters (Language)

65%

Solving simple daily life addition and subtraction problems with 3 digits (Mathematics)

57%

Analyses and applies the appropriate number operation in a situation (Mathematics)

59%

Sources: National Achievement Survey (2017) dashboard, NCERT; PRS.

To achieve universal foundational literacy and numeracy, the Policy recommends setting up a National Mission on Foundational Literacy and Numeracy under the MHRD.  All state governments must prepare implementation plans to achieve these goals by 2025.  A national repository of high-quality resources on foundational literacy and numeracy will be made available on government’s e-learning platform (DIKSHA).   Other measures to be taken in this regard include: (i) filling teacher vacancies at the earliest, (ii) ensuring a pupil to teacher ratio of 30:1 for effective teaching, and (iii) training teachers to impart foundational literacy and numeracy.

Effective governance of schools

The Policy states that establishing primary schools in every habitation across the country has helped increase access to education.  However, it has led to the development of schools with low number of students.  The small size of schools makes it operationally and economically challenging to deploy teachers and critical physical resources (such as library books, sports equipment).  

With respect to this observation, the distribution of schools by enrolment size can be seen in the table below.  Note that, as of September 2016, more than 55% of primary schools in the country had an enrolment below 60 students.   

Table 5: Distribution of schools by enrolment size

Strength (Grade)

Below 30

31-60

61-90

91-120

121-150

151-200

More than 200

Primary schools (Class 1-5)

28.0%

27.5%

16.0%

10.3%

6.3%

5.6%

6.4%

Upper primary schools (Class 6-8)

14.8%

27.9%

18.7%

15.0%

8.4%

7.2%

8.0%

Upper primary schools (Class 1-8)

5.7%

11.6%

13.0%

12.1%

10.4%

13.4%

33.8%

Sources: Flash Statistics on School Education 2016-17, UDISE; PRS.

While nearly 80% primary schools had a library, only 1.5% schools had a librarian (as of September 2016).  The availability of facilities is better in higher senior secondary schools as compared to primary or upper primary schools. 

Table 6: Distribution of schools with access to physical facilities

Facilities

Primary schools (Class 1-5)

Upper primary schools (Class 1-8)

Higher senior secondary
 schools (Class 1-12)

Library

79.8%

88.0%

94.4%

Librarian

1.5%

4.5%

34.4%

Playground

54.9%

65.5%

84.3%

Functional computer

4.4%

25.2%

46.0%

Internet connection

0.9%

4.2%

67.9%

Sources: Flash Statistics on School Education 2016-17, UDISE; PRS.

To overcome the challenges associated with development of small schools, the NEP recommends grouping schools together to form a school complex.  The school complex will consist of one secondary school and other schools, aanganwadis in a 5-10 km radius.  This will ensure: (i) adequate number of teachers for all subjects in a school complex, (ii) adequate infrastructural resources, and (iii) effective governance of schools.

Restructuring of Higher Education Institutes

The NEP notes that the higher education ecosystem in the country is severely fragmented.  The present complex nomenclature of higher education institutes (HEIs) in the country such as ‘deemed to be university’, ‘affiliating university’, ‘affiliating technical university', ‘unitary university’ shall be replaced simply by 'university'.

According to the All India Survey on Higher Education 2018-19, India has 993 universities, 39,931 colleges, and 10,725 stand-alone institutions (technical institutes such as polytechnics or teacher training institutes).  

Table 7: Number of Universities in India according to different categories

Type of university

Number of universities

Central University

46

Central Open University

1

Institutes of National Importance

127

State Public University

371

Institution Under State Legislature Act

5

State Open University

14

State Private University

304

State Private Open University

1

Deemed University- Government

34

Deemed University- Government Aided

10

Deemed University- Private

80

Total

993

Sources: All India Survey on Higher Education 2018-19; PRS.

The NEP recommends that all HEIs should be restructured into three categories: (i) research universities focusing equally on research and teaching, (ii) teaching universities focusing primarily on teaching, and (iii) degree granting colleges primarily focused on undergraduate teaching.  All such institutions will gradually move towards full autonomy - academic, administrative, and financial.  

Setting up a National Research Foundation to boost research

The NEP states that investment on research and innovation in India, at only 0.69% of GDP, lags behind several other countries.   India’s expenditure on research and development (R&D) in the last few years can be seen in the figure below.   Note that the total investment on R&D in India as a proportion of GDP has been stagnant at around 0.7% of GDP.   In 2018-19, the total expenditure on R&D in India was Rs 1,23,848 crore.  Of this, Rs 72,732 crore (58%) of expenditure was by government, and the remaining (42%) was by private industry. 

Figure 2: R&D Expenditure in India (2011-12 to 2018-19) 

image     

 

 

 

 

 

 

Sources: S&T Indicators Table 2019-20, Ministry of Science and Technology, March 2020; PRS.

Figure 3: Comparison of R&D expenditure in India with other countries (2017)

image

 

 

 

 

 

 

 

 

 

Sources: S&T Indicators Table 2019-20, Ministry of Science and Technology, March 2020; PRS.

To boost research, the NEP recommends setting up an independent National Research Foundation (NRF) for funding and facilitating quality research in India.  The Foundation will act as a liaison between researchers and relevant branches of government as well as industry.  Specialised institutions which currently fund research, such as the Department of Science and Technology, and the Indian Council of Medical Research, will continue to fund independent projects.  The Foundation will collaborate with such agencies to avoid duplication.

Digital education

The NEP states that alternative modes of quality education should be developed when in-person education is not possible, as observed during the recent pandemic.  Several interventions must be taken to ensure inclusive digital education such as: (i) developing two-way audio and video interfaces for holding online classes, and (ii) use of other channels such as television, radio, mass media in multiple languages to ensure reach of digital content where digital infrastructure is lacking.

In this context, we analyse: (i) the availability of computer and internet across households in India, and (ii) ability to use computer or internet by persons in the age group of 5-14.  As of 2017-18, the access to internet and computer was relatively poor in rural areas.  Only 4.4% of rural households have access to a computer (excludes smartphones), and nearly 15% have access to internet facility.  Amongst urban households, 42% have access to internet. 

Table 8: Access to Computer and Internet across households (2017-18)

Access to ICT

Rural

Urban

Overall

Households having computer

4.4%

23.4%

10.7%

Households having internet facility

14.9%

42.0%

23.8%

Note: Computer includes desktop, laptop, notebook, tablet.  It does not include smartphone. 

Sources: Household Social Consumption on Education (2017-18), Ministry of Statistics and Programme Implementation, July 2020; PRS.

Table 9: Ability to use Computer and Internet across persons in the age group 5-14 (2017-18)

Ability to use ICT

Rural

Urban

Overall

Ability to use computer

5.1%

21.3%

9.1%

Ability to use internet

5.1%

19.7%

8.8%

Note: Ability to use computer means to be able to carry out any of the tasks such as: (i) copying or moving a file/folder, (ii) sending emails, (iii) transferring files between a computer and other devices, among others. Ability to use internet means to be able to use the internet browser for website navigation, using e-mail or social networking applications.

Sources: Household Social Consumption on Education (2017-18), Ministry of Statistics and Programme Implementation, July 2020; PRS.

Public spending on education to be increased to 6% of GDP

The recommendation of increasing public spending on Education to 6% of GDP was first made by the National Policy on Education 1968 and reiterated by the 1986 Policy.  NEP 2020 reaffirms the recommendation of increasing public spending on education to 6% of GDP.  In 2017-18, the public spending on education (includes spending by centre and states) was budgeted at 4.43% of GDP.  

Table 10: Public spending on Education (2013-2018)

Year

Public expenditure (Rs crore)

% of GDP

2013-14

4,30,879

3.84%

2014-15

5,06,849

4.07%

2015-16

5,77,793

4.20%

2016-17

6,64,265

4.32%

2017-18

7,56,945

4.43%

Sources: 312th Report, Standing Committee on Human Resource Development, March 2020; PRS.

Figure 4: Comparison of public spending on Education in India with other countries as % of GDP (2015)

image

 

 

 

 

 

 

 

 

 

Sources: Educational Statistics at Glance 2018, MHRD; PRS.

In the figure below, we look at the disparities within states in education spending.  In 2020-21, states in India have allocated 15.7% of their budgeted expenditure towards education.  States such as Delhi, Rajasthan, and Maharashtra have allocated more than 18% of their expenditure on Education for the year 2020-21.  On the other hand, Telangana (7.4%), Andhra Pradesh (12.1%) and Punjab (12.3%) lack in spending on education, as compared to the average of states. 

Figure 5: Budgeted allocation on Education (2020-21) by states in India

image

Note: AP is Andhra Pradesh, UP is Uttar Pradesh, HP is Himachal Pradesh and WB is West Bengal.
Sources: Analysis of various state budget documents; PRS.

For a detailed summary of the National Education Policy, see here