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Group of economists writes to PM Modi requesting not to dilute NREGA

by IBNS 14 Oct 2014, 10:36 am

New Delhi, Oct 14 (IBNS): At least 28 leading economists wrote to Prime Minister Narendra Modi saying they fear that the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) is trying to dilute the rural jobs guarantee scheme introduced in by the previous Congress-led United Progressive Alliance (UPA) government.

The letter said: “We are writing to express our deep concern about the future of the National Rural Employment Guarantee Act (NREGA)…It is alarming to hear of multiple moves (some of them going back to the preceding government) to dilute or restrict the provisions of the Act. Wages have been frozen in real terms, and long delays in wage payments have further reduced their real value.”

The signatories to the letter included names like Pranab Bardhan of Berkeley, development economist Jean Dreze, Maitreesh Ghatak of London School of Economics, Dilip Abreau of Princeton, Anirban Kar of the Delhi School of Economics and Ritika Khera of IIT Delhi.

The rural jobs guarantee scheme was introduced in 2005 by the previous government.

The economists further said that about 50 million households were getting job benefits each year at a relatively small cost and there have been “wide-ranging social benefits” too owing to the scheme.