Study reveals delay in MGNREGA payments

MGNREGA wages were delayed for 71% of transactions beyond the mandated seven days, according to a report in the Business Standard. The report quoted a study by LibTech India and the People’s Action for Job Security (PAEG) which was carried out on about 1.8 million transactions between April 2021 and September 2021 by randomly sampling 10% of Fund Transfer Orders (FTOs) from one block per district per state for ten states.

The study also said in 44% of transactions the delay went beyond the mandated 15 days, and 14% of transactions it went beyond the mandated 30 days.

Wages segregated on the basis of caste category of workers

In stage 1 of the payment system, panchayat or block sends a FTO with worker details after the work is finished. The central government processes the FTOs and transfer the money directly to workers’ accounts. The time set for completion of  Stage 1 is 8 days and for Stage 2 it is 7 days after Stage 1.

The delay is higher in some poor states, said the study. For example, Stage 2 for nearly two-thirds transactions in Jharkhand exceeded 15 days, the Business Standard said, adding that half or more than half of the transactions of Madhya Pradesh, Chhattisgarh, and West Bengal exceeded 15 days.

In March 2021, the Central government had segregated payment of wages based on the caste category of workers, a move that beats the universal nature of the programme, said the report.

“What we are seeing are at least three different yet connected issues. First, the continued delays in payment of wages. Second, arbitrary technological interventions in the payments process whose conceived rationale and observed outcomes are at odds and third is difficulties faced by workers and officials alike in resolving payment related grievances owing to adoption of opaque technical architecture,” the study said.