PMGSY benefits the poor more

By: | Updated: February 11, 2016 2:30 AM

While the debate on MGNREGA continues, with the BJP first bashing and then endorsing the Congress party’s flagship scheme, the data suggests it has limited use.

Narendra modi on mgnregaGiven the MGNREGA leakages versus the rigorous evaluation of PMGSY, the latter seems by far the better anti-poverty scheme. Sadly, poverty data does not capture the period in which PMGSY expenditure climbed rapidly. (PTI)

While the debate on MGNREGA continues, with the BJP first bashing and then endorsing the Congress party’s flagship scheme, the data suggests it has limited use. FE columnist Surjit Bhalla (Read also) shows 48% of workdays created are fictitious and 58% of payments go to the non-poor. Swaminathan Aiyar in The Times of India uses data from NC Saxena in Inclusion (https://goo.gl/cmfVZA and https://goo.gl/0UXV8c respectively) to show the rich states benefit more from MGNREGA while the poor get more from the Pradhan Mantri Gram Sadak Yojana (PMSGY), especially on a per capita poor basis.

Given the MGNREGA leakages versus the rigorous evaluation of PMGSY, the latter seems by far the better anti-poverty scheme. Sadly, poverty data does not capture the period in which PMGSY expenditure climbed rapidly.

page 1 graph 2

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition