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during the return of native migrants, Q7. Some macroeconomists in
provide broad guidelines and authorised India are of the view that
the sarpanch with the power of a district spending on NREGA should be
magistrate along with some amount of
financial autonomy. increased as it is considered to
be a business cycle stabiliser.
Today, in 2021, after one year of What is your view on NREGA
experience we should have been much spending during the Covid
more prepared. This is so because the period?
past pandemics have shown multiple
spikes. Even if one were to believe that Yes, of course, if people are not able to
the current virus in on its wane, there is get enough jobs at the local level then
talk among experts that one could expect NREGA can be of help. Extension of the
similar kind of virus in the future. scheme to urban areas (as suggested by
Whether it takes the form of a pandemic Drèze on account of job losses in the
or not is a different point, but localised pandemic) will also be welcome. The
impact are likely to be there. All these, scheme being demand-based has in-built
call for strengthening the local bodies, checks and will not be a burden on
not just to address an emergency exchequer if alternative opportunities
situation, but with permanent features to are available. However, note that
improve availability and access of public provisioning for NREGA in the budget
utilities, and to strengthen the local estimates for 2021-22 when compared
economy. This will also allow decision- with the revised estimates of 2020-21 has
making at the local level with evidence- decreased by -35%. With reduction in
based reasoning, which means that funds, those implementing the scheme
research capacities that feed into public will dissuade job creation under NREGA.
policy also need to be strengthened at The pandemic is a time when additional
the local level.
budget could have been allocated for
such schemes.
On evidence-based reasoning, one is
reminded of an opinion attributed to The activities under NREGA could be
John Maynard Keynes who when linked to boost the local economy. For
confronted that he seems to be changing instance, allowing work in one’s one
his position had pointed out that if farms. Maharashtra had done this in its
evidence changes then he changes his EGS, prior to NREGA. In Palghar, earlier
position. We should be pragmatic and part of undivided Thane,
allow people to take decisions, and not implementation of EGS led to revival of
admonish them for mistakes when their rural economy through agricultural and
intentions were honest and sincere, but horticultural development. It also
they should be open to gathering of brought about reduction in seasonal
evidence and evaluating these to migration, increased enrolment in
examine and revise their position when schools, and increased consumption of
required. It is important that people who fruits that are nutritionally beneficial. At
take advantage of this for their rent- the same time, if not implemented
seeking activities are kept away from properly, these could lead to rent
such positions.
seeking. In other words, NREGA can be
positively used with necessary checks
and balances. If used appropriately, it
can have multiplier effects.
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