The Modi government's squeeze on the UPA's flagship MNREGA scheme is translating into dramatic fund cuts for Maharashtra, which has a BJP government.Compared to the last financial year till December, central funds to the rural job scheme have almost halved.
The MNREGA--among the largest job-creation programmes in the world--provides a social safety net for the rural poor. Under the scheme, the Centre funds 100 days of work at the minimum wage for rural job-seekers. States pitch in to finance the rest.
The picture in Maharashtra shows how swiftly federal funding has fallen over the last year. In the nine-month period between April and December 2014, Maharashtra received Rs.593 crore from the Centre. Compare this with the same period in 2013 when it had received Rs.1,152 crore.A staggering 48.5% fund cut.
The picture is not much better when you compare the entire year. In the 2013-14 financial year, Maharashtra received central funds amounting to Rs.1,277 crore for the scheme. But based on the money received so far, the state government officials estimate it will receive just about Rs.800 crore for the 2014-15 financial year (a dip of 37%). Interestingly , after the generous funding it had received during the UPA regime, the state had asked for a larger chunk of central funding for the programme this year.
Officials say the cuts have not affected the working of the scheme so far. Sources say the scheme has not been hit so far because officials are relying on finance that remained unused from the previous year The state's experience matches the larger national trend, with the NDA seeking to restrict the scheme. In October 2014, 28 leading economists had written to Prime Minister Narendra Modi urging him not to “dilute“ the programme.
He points out that Maharashtra has among the worst records in the country for providing employment under MNREGA and restricting funds could make matters much worse.
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