The finance minister, Nirmala Sitharaman, has highlighted the need for a deeper understanding of the implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to effectively monitor rural activities. In an interview with Mint, she pointed out significant variations in the patterns of job demand in rural areas under the scheme, emphasizing the necessity to comprehend the scheme’s implementation.

Sitharaman noted that the demand for MGNREGA is not uniformly increasing across all regions. She emphasized the seasonal fluctuations in rural area activities and the subsequent addition of names to the scheme. She also highlighted that in some states, MGNREGA has been targeted as a resource from the Centre. However, she also mentioned that the Comptroller and Auditor General (CAG) has pointed out that in some cases, the demand matches or exceeds the rough estimate of the amount likely to come to the state, raising questions about the implications of this trend.

These insights from the finance minister shed light on the complex and nuanced economic landscape in rural areas, indicating the need for a more comprehensive approach to understanding and monitoring the impact of MGNREGA on rural activities and employment.