Sequentially, however, work demand touched a five month high in December, as most farm labourers usually start coming back to the job market after crop sowing for the Rabi season.
About 18.44 million people sought the typically unskilled work under the MGNREGS in December, down 28.4% from 25.77 million a year earlier. In November, however, only 14.66 million people had demanded work.
With this, demand for MGNREGS work eased for a sixth straight month from a year before, reflecting buoyant economic activities that usually open up better-paying job opportunities in industrial and other sectors.
The people who sought such work in December represented 15.36 million households, down 28.8% from a year before.
The government last month brought in the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) law to replace the MGNREGA. The new law goes beyond just being an employment guarantee legislation and has a broader mandate to further bolster rural jobs and infrastructure. The Opposition, however, has termed the law as regressive.
An SBI research report this week said states could gain ₹17,000 crore more in central allocation under the new law, compared with the average annual outlay under the earlier legislation over the past seven years.While the new law has been notified, supporting rules for its implementation are yet to be issued.
The latest data showed 196.6 million people have sought work under the MGNREGS in the first three quarters of this fiscal, down 15.3% from a year before, indicating buoyant economic activities.
However, some critics have suggested that the government’s unusual move to cap the MGNREGS spending at 60% of its 2025-26 allocation in the first half of the fiscal weighed on demand during key summer months.
A senior government official, however, refuted it, saying the expenditure department’s decision was aimed at more judicious deployment of funds.