The finance ministry’s proposal to utilise record foodgrains procurement for paying part of the wages to workers under Mahatma Gandhi National Rural Employment Guarantee Act (MG-NREGA) appears not to have takers in the ministry of rural development, which is wary of the repetition of bad experience during the NDA time such a scheme was in practice.
Sources said that the finance ministry had floated the idea for discussion to pay at least 25 per cent MGNREGA wages in kind by giving corresponding value of foodgrains. The food ministry appears to have been backing the idea, as it is grappling with the “problem of plenty” with record food grains procurement in itself creating additional cost of storage.
“This idea of food for work will not materialise. The MG-NREGA workers can go to public distribution shops (PDS) and buy foodgrains. The ministry will not get into such things, as we have already burnt fingers earlier when foodgrains were given to workers,” said a senior official.
The finance ministry had cut the annual budgetary allocation for MGNREGA from `40,000 crores in 2011-12 to `33,000 crores in 2012-13.
However, there appears to be decline in demands for jobs under MG-NREGA, as the flagship scheme witnessed a decline of 20 per cent in the year 2011-12 for job demands than the corresponding previous year. The ministry of rural development is, however, of the view that since the MGNREGA is a demand driven scheme if there were more demands for works more funds would be made available.
The food ministry has, however, to deal with the “problem of plenty”, as the National Food Security Bill, which would account for 61 million tonnes of foodgrains, does not appear to be taking shape due to stiff opposition by key UPA ally the Trinamul Congress.