MGNREGA AS A TOOL FOR SUSTAINABLE RURAL DEVELOPMENT: A STUDY OF STATE OF RAJASTHAN

Abstract

This study examines the implementation, progress, and challenges of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), one of India’s largest rural employment schemes. Utilizing recent nationwide and state-level data, the analysis highlights MGNREGA’s extensive reach across districts, blocks, and gram panchayats, and its role in promoting inclusive employment among marginalized communities such as Scheduled Castes, Scheduled Tribes, and women. Despite its broad coverage and improved wage rates, the scheme has experienced a significant decline in labour budget utilization, employment days per household, active participation, and fund allocation in recent fiscal years. The study also identifies operational challenges including decreased work completion rates, increased instances of inactive gram panchayats, and reduced expenditure on agriculture-related works. Financial data reveal a contraction in government releases and underutilization of available resources, raising concerns about the scheme’s sustainability and impact. The findings underscore the need for renewed policy focus, enhanced funding, improved ground-level implementation, and stronger convergence with complementary programs to ensure that MGNREGA continues to fulfill its mandate of providing livelihood security and fostering equitable rural development in India.