Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/31574 
Year of Publication: 
2007
Series/Report no.: 
Working Paper No. 505
Publisher: 
Levy Economics Institute of Bard College, Annandale-on-Hudson, NY
Abstract: 
Since its enactment in 2005, the National Rural Employment Guarantee Act (NREGA) has been implemented in 200 districts in India. Based on state-by-state employment demand-supply data and the use of funds released under NREGA, it is found that, although it is a demand-driven scheme, there are significant interstate differences in the supply of employment. The supply falls far short of demand, particularly in low-income states, where the organizational capacity to implement the scheme is limited. It is also noted that the NREGA-induced fiscal expansion has not contributed to higher fiscal imbalances. The consolidation of other public employment programs into NREGA has actually kept the total allocation of funds by the central government at a level no higher than those reached in the fiscal years 200203 to 200506. The NREGA fund utilization ratio varies widely across states and is abysmally low in the poorer states. Since the flow of resources to individual states is based on approved plans outlining employment demand, it may turn out to be regressive for the poorer states with low organizational capacity in terms of planning and management of the schemes, especially labor demand forecasting.
Subjects: 
Employment Guarantee
Rural Employment Program
Budgetary Incidence
JEL: 
J21
J23
J31
J38
Document Type: 
Working Paper

Files in This Item:
File
Size
173.99 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.