‘employment guarantee act an opportunity to strengthen grassroots democracy and to empower weaker sections’: pm

pm addresses state ministers of rural development

Tuesday, September 27, 2005

The Prime Minister, Dr. Manmohan Singh, has said that National Rural Employment Guarantee Act (NREGA) was a path-breaking legislation that offered an opportunity for strengthening the grassroots democracy and empowering weaker sections of our society. “The NREGA must be a transparent and a truly people’s programme. Therefore, methods of estimation and measurement of works and rates of payment for each task should be made as transparent, as is physically possible”, he said. Dr. Singh stressed the need to translate the legal commitment of the Act into an effective Programme of Action that delivers the benefits as guaranteed. He emphasised that the foremost requirement was establishing institutional mechanisms for implementing the guarantee and said that the success of the NREGA depended vitally on its proper implementation.

The Prime Minister said that the Act invested the rural people with the right to demand employment. He urged the State Governments to pay attention to three watchwords – that outlays are matched by outcomes, that productive assets are created to pay for the money that is spent and that guarantee is implemented in its true spirit. “If this legislation is to yield the desired results, it is also necessary that all of us work to ensure that our economy grows at he rate of 7-8% per annum”, Dr. Singh added.

Following is the text of the Prime Minister’s opening remarks at the meeting:

“I am very happy to be in your midst when you are deliberating on a subject which is of great importance to the welfare of our rural citizens and I am very happy also that this important task has been assigned for supervision, for guidance to Shri Raghuvansh Prasad Singhji. His commitment, his dedication to the cause of rural masses, particularly the downtrodden sections of our rural communities is something in which we all take pride. So I am very happy that this path-breaking legislation which we have now enacted will be implemented under his care, guidance and supervision.

When we became independent as a nation, our Founding Fathers dreamt of a country where every citizen would be free from poverty, ignorance and disease – problems, which had plagued millions of our citizens for centuries. While we have made remarkable progress in many spheres since then, it is still a matter of serious concern that large segments of our people still suffer from these age old scourges. It is only by empowering our people and by granting them an inalienable right to a livelihood that we can ensure that such intentions and dreams get translated into reality.

In this context, the National Rural Employment Guarantee Act has been enacted. It is a path-breaking legislation. It’s a landmark in the economic history of our people, in the regime of rights enjoyed by our people, and in our efforts for promotion of social equity and justice. It entitles our rural poor to guaranteed employment, to a means of sustenance, a means to avert distress, a means to secure two square meals a day, and a means to lift them out of the trap of poverty.

The legal guarantee of 100 days of employment in a year to a rural household is unprecedented. India has set an example that I am sure many other countries will follow. The passing of this legislation is also significant because of the widespread discussion that it generated. Our Chairperson and Congress president, Smt. Sonia Gandhi herself took a great deal of interest in ensuring that the legislation that we enact does come up to the peoples’ expectations. I also draw your attention to the debate in Parliament. I urge you all to draw the correct lessons from what was said in that debate. Today, you are gathered to consider how best we can deliver on this promise to our poor.

The NREGA is a unique social safety net because its beneficiaries are not passive recipients of doles, but will become active participants in the creation of tangible real rural assets. While we are committed to extend the NREGA to the entire country, our focus presently is on the 200 most backward districts. Our Government will ensure a completely non-partisan choice of districts. Our performance in these 200 districts will yield useful insights and lessons while extending it across the country. Therefore, the quality of implementation of the Act in its initial phase is of critical importance. We need to translate the legal commitment of the Act into an effective Programme of Action that delivers the benefits to our people as guaranteed by the Act. I take this opportunity to highlight some issues that would require your personal attention.

First of all, we must realize the difference between a scheme and a guarantee. A scheme is supply driven while a guarantee imposes a legal obligation on the state. Focus shifts from outlays and expenditures to ensuring that employment is provided where needed. Of course, this has to be tied with tangible works resulting in the creation of real productive assets. But the focus on employment is clear and there should be no doubt on that.

This will require a lot of hard work by the States, such as in creating perspective plans, having a shelf of projects, establishing mechanisms for providing work wherever required, setting up institutions for monitoring and for providing technical support, designing smooth financial flows and providing for accountability of the entire processes so that there is no corruption, so that there are no leakages. A task of this nature has never been attempted before in our country and hence, the importance of an utmost serious effort in this regard.

The foremost requirement is establishing institutional mechanisms for implementing the guarantee. The Panchayati Raj Institutions, with the assistance of government agencies, are central to this process. Panchayati Raj Institutions, will have to be geared up for it. This is also an opportunity for strengthening grassroot democracy. You would need to ensure capacity building of these institutions so that they may discharge their responsibilities effectively and purposely. Besides the panchayats, other supporting agencies like the District Administration and Line Departments should be properly trained for the tasks that lie ahead. All agencies responsible for the implementation at all levels should know that deficiencies and deviations bear costs.

The guarantee requires timely transfer of resources to the implementing agencies so that works can start on demand. States will, therefore, have to ensure that wage employment is given within 15 days of demand for work. If this does not happen, States will be liable to pay unemployment allowance at their own cost.

Under Employment Guarantee Schemes, there is much wider scope for participatory planning than ever before with the Gram Sabha selecting the works needed. Local communities and panchayats enable local area planning. With proper technical support, they should be able to develop feasible plans well in advance to meet the demand for work in 15 days. I believe that many development initiatives have been impeded not so much for want of resources as for want of proper perspective planning. We must strengthen our capabilities to devise projects and programmes suited to the needs of the local population, their resource endowment, their aspirations are being taken into account.

This Act provides an opportunity for creating durable assets that strengthen the livelihood resource-base of the area. Those who work for wages in creating these assets should gradually move into self-sustaining employment. The nature of works suggested in the Act offers an opportunity to States to rejuvenate their natural resource-base and banish poverty and also create durable productive assets which will in turn improve agricultural productivity. A careful selection and execution of works has the potential to transform the rural economy of the state and to change the very geography of poverty.

The NREGA must be a transparent and a truly people’s programme. Therefore, methods of estimation and measurement of works and rates of payment for each task should be made as transparent as is physically possible. The labour that seeks work must understand what is offered, on what terms and demand its full entitlement. Similarly, there should be complete transparency in maintenance of muster rolls and payment of wages. There should be fairness all around. That’s the intention, that’s the purpose of this Act.

Every aspect of implementation will be covered by the Right to Information Act, which is another historical legislation enacted by our people. These works will respond to the people’s felt needs and aspirations and any mishandling of works, programmes will invite the people’s wrath. That’s why we must be fully prepared to discharge the responsibilities that are entrusted to the State Governments for implementation of these path-breaking legislations. It must be noted that people in general will have full access to public records and information pertaining to the implementation of NREGA. Therefore, we must not forget that eternal vigilance is the price of liberty.

The Act offers an opportunity to empower weaker sections of our society. Scheduled Castes and Scheduled Tribes and beneficiaries of land reforms can benefit through irrigation works on their field and water management schemes I suggest should be given utmost priority in designing the works programme. Women have been given priority in the allotment of employment opportunities. Thus, the economic security offered by the Act can be leveraged for social equity as well.

This Act invests the rural people with the right to demand employment and they should know it. We must spare no effort in communicating the meaning and purposes of the Act right across the rural areas, specially where poverty, disease and distress migration are endemic.

Hon. Ministers, you will recall that I had said in Parliament that the success of the NREGA depends vitally on its proper implementation. If this legislation is to yield the desired results, it is also necessary that all of us work to ensure that our economy grows at the rate of 7–8% per annum. We must create a climate for enterprise where both private and public sector investment can find a hospitable place. We must manage our budgets well so that the fiscal health of the Government is not impaired. We must generate the resources that we expend.

I urge every State Government to pay attention to three watchwords: that outlays are matched by outcomes; that productive assets are created to pay for the money that is spent; and the guarantee is implemented in its true spirit. As long as we are mindful of these watchwords, we will be able to implement this historic commitment in right earnest to our people.

Let us make it our collective commitment, let us all working together pledge to give our full support to this historic, path-breaking

YSR/DS/HS/HK/KKI