Telangana outperforms national trends in MGNREGA employment for April-September 2024

The state has not only bucked the national trend of declining employment under the scheme but also recorded a remarkable 27.1% increase in person-days generated compared to the previous financial year.

Hyderabad: Telangana has outperformed national trends under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for the months of April and September 2024. A report of comparative analysis released by LibTech India - which works in social sector - revealed that Telangana has demonstrated significant success in the implementation of MGNREGA for the period from April to September 2024.

The state has not only bucked the national trend of declining employment under the scheme but also recorded a remarkable 27.1 per cent increase in person-days generated compared to the previous financial year.

As per data analysed by the team of Libtech, while national MGNREGA person-days dropped by 16.2 per cent, Telangana saw a sharp increase of 27.1 per cent, producing 10.35 crore person-days during the six-month period, which accounts for 6.6 per cent of the national total.

Despite a reduction in household participation at the national level, Telangana reported an increase in the number of households benefiting from MGNREGA, with 25.33 lakh households employed during FY 2024-25.

Kamareddy, Mulugu, and Warangal districts led the state in employment generation, with significant increases of 82 per cent, and 66 per cent each, respectively. However, Sangareddy district saw a slight decline, with person-days falling from 46 lakh in FY 2023-24 to 43 lakh in FY 2024-25.

The financial year began strongly, with employment generation in April and May surpassing figures from the same period in the previous year. However, after a directive from the Ministry of Rural Development in May, there was a sharp drop in person-days starting in June, with July recording a steep decline of 41.5 per cent.

“The mid-year decline in employment generation highlights the impact of the Ministry’s intervention, which flagged issues regarding fund allocation. This appears to have slowed the program’s momentum significantly from June onwards. The report highlights Telangana's strong performance, particularly in contrast to the national decline in MGNREGA employment generation," said Libtech India's programme manager in Telangana, Rahul Mukkera.

"However, the sharp drop in person-days following the Ministry of Rural Development’s intervention raises important questions about balancing central oversight with state-level autonomy in welfare program implementation," Mukkera added.

Strengthening this balance could enhance the effectiveness of MGNREGA in meeting local employment needs, he added.

The Libtech India's report observed that as a demand-driven employment programme, MGNREGA is expected to align with the demand from workers. However, in recent years, the Union government’s control over budget allocations, coupled with varying levels of political will and administrative capacity among states, has influenced the programme's implementation. This makes it essential to analyse employment-related data to assess MGNREGA's effectiveness in Telangana.