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Economic impact of MGNREGS works in north Karnataka

Author

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  • Sheetal Bharat

    (BASE University, Bengaluru
    BASE University, Bengaluru
    BASE University, Bengaluru)

Abstract

Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) works carried out in Honnakiranagi village in Kalburgi district of North Karnataka are evaluated in this paper for their economic impact on the participants. A preliminary survey on about a third of the households’ expenditures suggest that the MGNREGS works had a significant impact on their incomes as well as quality of consumption. It was found that if a household works an extra day under MGNREGS, they are likely to spend over 40 per cent of their additional income on grains, about 6 per cent on milk, over 9 per cent on sugar, over 15 per cent on reading and writing paraphernalia, all other factors being held constant. However, participation in the scheme do not seem to help the families move upwardly in terms of ownership of more durable assets, indicating that the scheme is broadly servicing the demand for necessary goods, not beyond. These findings confirm the Engel law which states that the lowest income families spend large shares of their incomes on necessaries. The scheme is adequately performing its intended role of enhancing household budgets for those who most need such an enhancement.

Suggested Citation

  • Sheetal Bharat, 2022. "Economic impact of MGNREGS works in north Karnataka," BASE University Working Papers 16/2022, BASE University, Bengaluru, India.
    • Handle: RePEc:alj:wpaper:16/2022
    as

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    References listed on IDEAS

    as
    1. Ahuja, Usha Rani & Tyagi, Dushayant & Chauhan, Sonia & Chaudhary, Khyali Ram, 2011. "Impact of MGNREGA on Rural Employment and Migration: A Study in Agriculturally-backward and Agriculturally-advanced Districts of Haryana," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 24(Conferenc), November.
    2. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    3. Tagat, Anirudh, 2020. "Female matters: Impact of a workfare program on intra-household female decision-making in rural India," World Development Perspectives, Elsevier, vol. 20(C).
    Full references (including those not matched with items on IDEAS)

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