Govt panel suggests sharp hike in NREGS wage rates, budgetary outlay

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A high-level government panel, tasked with recommending changes to make the rural job guarantee scheme more effective, has called for a significant increase in the extant wage rates--over and above the recent annual hike--and the budgetary allocation for the programme, persons aware of the details said...

This is because rates under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) serve as the benchmark for farm/rural wages and significantly influence industrial wages as well..

Any sharp hike in the MGNREGS rate can potentially push up farm wages, lead to higher cost of agricultural production for farmers and stoke broader price pressure in the economy when authorities are trying to tame inflation, experts said...

While the panel hasnt suggested the quantum of annual budgetary outlay for the MGNREGS, it wants the allocation to be increased substantially so that the recommendations can be implemented, said the persons quoted above...

She has also highlighted that the actual spending under the scheme has been substantially higher than the initial Budgetary outlay in recent years, suggesting that the government has provided adequate funds to cater for increased demand...

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