UPSC Relevance
GS Paper 2-Governance and service delivery,Role of PRIs,Welfare schemes and Aadhaar debates,Social justice and rights-based entitlements
GS Paper 3-Rural development,Employment and inclusive growth,Use of technology in governance
Why in News
A sudden spike of 27 lakh deletions from the MGNREGS database between October 10 and November 14, 2025 — coinciding with the government’s mandatory e-KYC and Aadhaar-linked verification drive — has triggered concerns of large-scale exclusion of genuine workers, especially in high e-KYC completion states like Andhra Pradesh.
Researchers from Lib Tech have flagged this as an “unusual” and unprecedented rise, with deletions in one month doubling the total deletions of the previous six months.
Background
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), launched in 2005, is the world’s largest rights-based employment programme.
It guarantees 100 days of unskilled manual work annually to any rural household seeking employment.
MGNREGA aims to:
- Provide livelihood security
- Build rural assets and strengthen natural resource management
- Empower women (minimum one-third participation required)
- Promote decentralised planning through Gram Sabhas and PRIs
As of 2022–23, over 15 crore workers were active under the scheme.
Constitutional & Legal Basis
MGNREGA is rooted in:
- Article 21 – Right to livelihood (expanded in Olga Tellis v. Bombay Municipal Corporation)
- Article 38 & 39 – Duty to promote social, economic justice and adequate means of livelihood
- Article 243G – Role of Panchayats in economic development
It is India’s only law that guarantees employment as a legal right.
Key Features of MGNREGA
1. Demand-Driven, Rights-Based Framework
➢ People can ask for work anytime, and the government must provide it within 15 days.
➢ If work is not given, the worker becomes legally entitled to unemployment allowance, ensuring accountability.
2. Decentralised Planning
➢ The Gram Sabha decides which works are needed in the village, making the scheme people-centred.
➢ At least 50% of works must be carried out by Gram Panchayats, which strengthens local self-governance.
3. Inclusivity
➢ Ensures dignity by mandating 33% participation of women, promoting gender equality in rural employment.
➢ Provides equal wages under the Minimum Wages Act, 1948, ensuring fairness and preventing discrimination.
4. Transparency & Social Audit
➢ Social audits by Gram Sabhas help check misuse of funds.
➢ Mandatory proactive disclosure of job cards, muster rolls, and payments builds trust.
5. Timely Wage Payments
➢ Wages must be paid within 15 days, mainly via DBT to prevent delays and leakages.
6. Focus on Durable Asset Creation
➢ Works include water conservation, land development, irrigation, and afforestation, helping long-term rural development.
7. Priority to Marginalised Groups
➢ SC/ST households, landless families, and vulnerable groups get priority in work allocation.
Data & Trends: Understanding MGNREGA’s Performance
- Average employment provided remains 45–55 days, far below the guaranteed 100 days.
- MGNREGA budget allocation has not kept pace with inflation, causing fund shortages.
- Women’s participation is rising; in states like Kerala and Tamil Nadu, it often exceeds 50–60%.
- Rajasthan, Chhattisgarh and Kerala lead in transparency and work execution.
These trends show MGNREGA’s crucial role, but also highlight systemic constraints.
.What Triggered the Recent Deletion Wave?
1. Mandatory e-KYC Verification
- Workers must complete Aadhaar-based e-KYC.
- Supervisor (mate) uploads two live photos daily via NMMS.
- Photos are matched with Aadhaar; mismatch or non-KYC → deletion.
2. Misuse of NMMS Identified
A July 2025 circular flagged:
- Irrelevant photos, photo-to-photo uploads
- Same photo used for multiple workers
- Mismatch between actual and recorded workers
- Missing afternoon photos
→ Led to stricter Aadhaar verification and mass deletions.
3. Aadhaar-Based Payment System (ABPS)
- Uses Aadhaar as financial address.
- Issues: name mismatch, gender/age errors, bank–Aadhaar mismatch.
- Result: payment rejections → many job cards marked invalid.
Scale of Deletions (Oct 10 – Nov 14, 2025)
- 27 lakh job cards deleted.
- Net additions dipped by 17 lakh.
- 6 lakh active workers removed.
- Largest deletions: Andhra Pradesh (15.92 lakh), Chhattisgarh (1.04 lakh), Tamil Nadu (30,529).
- Higher e-KYC completion = higher deletions.
Social Impact of the Deletion Wave
1. Loss of Livelihood
MGNREGA is the primary safety net during lean farm seasons.
Large-scale deletions push vulnerable households into:
● Distress migration
● Informal and exploitative work
● Debt traps due to loss of assured wages
2. Impact on Women
Women depend on MGNREGA because of:
● Nearby worksites
● Equal wages
● Safe, community-based employment
With millions of deletions, rural women face reduced income and fewer safe work options.
3. Consequences for Migrants
Post-pandemic returning migrants rely heavily on MGNREGA for stability.
However:
● Aadhaar mismatches
● Mobile-based attendance (NMMS) issues
→ Exclude those who need jobs the most.
4. Local Economy Effects
Deletion of active workers reduces wage inflow in villages →
● Lower household consumption
● Reduced demand for local goods
● A broader rural economic slowdown
5. Administrative Distrust and Fear
Frequent deletions create fear and confusion among workers, who worry their job cards may disappear without warning.
This leads to:
● Reduced participation in MGNREGA
● Distrust in government systems
● Hesitation to demand work, especially among illiterate and marginalised groups
Long-Standing Issues in MGNREGA Implementation
1. Wage Delays & Chronic Underfunding
Most states fail to follow the 15-day wage payment rule.
Workers rarely receive compensation for delayed wages, turning a rights-based law into a supply-driven system where workers depend on state finances rather than legal guarantees.
Timely wage payments reflect deep social inequities:
● SC: 46%
● ST: 37%
● Others: 26%
Worst delays occur in Madhya Pradesh, Jharkhand, Odisha, and West Bengal, showing how caste and geography shape exclusion.
3. Weak Role of PRIs
Panchayati Raj Institutions (PRIs) often lack autonomy and administrative support. This results in:
● Delayed sanctioning of works
● Poor monitoring
● Weak or incomplete asset creation at village level
4. Fake Job Cards & Duplicate Entries
Persistent data issues lead to:
● Ghost beneficiaries
● Irregular muster rolls
● Poor-quality or incomplete assets due to inflated attendance records
5. Technology-Driven Exclusion (Added)
New systems like NMMS, ABPS, and e-KYC often exclude workers who lack smartphones, stable networks, or perfect Aadhaar–bank matching.
This hits migrants, women, and older workers the hardest.
Implications of the Current Technology-heavy Approach
1. Transparency with Higher Exclusion
Aadhaar-linked systems improve tracking and transparency, but they also amplify exclusion when biometric mismatches, network issues, or incorrect data block genuine workers.
2. Digital Errors Become Grounds for Denial
Technical glitches — wrong Aadhaar details, NMMS photo errors, ABPS rejections — end up denying legal entitlements, even though the law guarantees work on demand.
3. Digital Literacy Barriers
Workers with low digital literacy, especially women, elderly, and migrants, face new hurdles in completing e-KYC, using NMMS, or updating bank–Aadhaar links.
4. Accountability Shifts Away from Local Institutions
Heavy reliance on tech reduces the role of social audits, Gram Sabhas, and local monitoring.
This weakens community oversight and shifts responsibility to apps and algorithms, which often lack ground-level understanding.
Way Forward
1. Technology with Safeguards
Use tech without excluding workers by:
● Enabling offline NMMS mode for areas with poor network
● Allowing multiple ID options beyond Aadhaar
● Relaxing rules for name/gender mismatches to prevent wrongful deletions
2. Ensure Timely Fund Release
● Introduce automatic wage compensation for all delayed payments
● Guarantee adequate annual budget allocation so states don’t run out of funds mid-year
3. Strengthen Panchayats
● Empower PRIs to authorise wage payments for faster processing
● Improve capacity for monitoring, planning, and grievance redressal at village level
4. Start Works on Time
● Maintain a ready-to-start shelf of projects in every village
● Provide work immediately upon demand, restoring the scheme’s rights-based nature
5. Convergence with Other Missions
MGNREGA works can support key national goals such as:
● Climate adaptation (check dams, water harvesting, groundwater recharge)
● Swachh Bharat
● Green India Mission
● Flood and drought mitigation
6. Protect Vulnerable Groups
● Simplify job card issuance for migrants and mobile populations
● Ensure gender wage parity and safe, nearby worksites
● Offer community outreach for e-KYC assistance to reduce digital exclusion
Conclusion
MGNREGA remains a lifeline for rural India, but the recent spike in Aadhaar-linked deletions highlights the tension between technological reforms and inclusive welfare delivery.
Unless technology is implemented with sensitivity, transparency, and safeguards, the scheme risks drifting away from its founding principle — ensuring dignified, guaranteed livelihood for all rural households.
UPSC Prelims Practice Questions: MGNREGA
1. Consider the following statements regarding MGNREGA:
- It provides a legal guarantee of 150 days of unskilled manual work to every rural household.
- At least one-third of the beneficiaries must be women.
- Wage payments under MGNREGA must follow the minimum wages fixed under the Minimum Wages Act, 1948.
Which of the statements given above is/are correct?
(A) 2 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 3
Answer: (B)
Statement 1 is wrong — the guarantee is 100 days, not 150.
2. With reference to MGNREGA, consider the following statements:
- It is a demand-driven scheme.
- Unemployment allowance must be given if work is not provided within 15 days of demand.
- Gram Sabha has no role in recommending works.
Which of the statements given above is/are correct?
(A) 1 and 2 only
(B) 3 only
(C) 1 and 3 only
(D) 1, 2 and 3
Answer: (A)
Gram Sabha has a mandatory role — so Statement 3 is incorrect.
3. Which of the following are features of MGNREGA?
- Creation of durable assets
- Strengthening decentralisation through PRIs
- Use of only skilled labour for public works
- Mandatory social audit
Select the correct answer using the code below:
(A) 1 and 2 only
(B) 1, 2 and 4 only
(C) 2, 3 and 4 only
(D) 1, 3 and 4 only
Answer: (B)
MGNREGA is for unskilled labour, not skilled.
4. In the context of MGNREGA, “Demand-driven” implies:
(A) Government allocates funds based on fixed annual quotas.
(B) Workers are provided employment only if Gram Panchayat approves.
(C) Workers get employment on asking; else unemployment allowance is paid.
(D) Only areas with high migration get funds.
Answer: (C)
5. Which of the following is/are correct about wage payments under MGNREGA?
- Wages must be paid within 15 days.
- Compensation for delayed wages is mandatory.
- All states follow equal wage rates under the scheme.
Select the correct answer:
(A) 1 only
(B) 1 and 2 only
(C) 2 and 3 only
(D) 1, 2 and 3
Answer: (B)
Wage rates differ by state; hence Statement 3 is incorrect.