Joint Evaluation Report Employment Guarantee Scheme Maharashtra

JOINT EVALUATION REPORT ON EMPLOYMENT GUARANTEE SCHEME OF MAHARASHTRA {APRIL X m —OCTOBER 1978] •ROGRAMME EVALUATION ORGANISATION DIRECTORATE OF •LANNING COMMISSION ECONOMICS & STATISTICS iOVERNMENT OF INDIA GOVERNMENT OF MAHARASHTRA JEW DELHI BOMBAY June 1980 Mb. S"frrTms U»lt. Iw llraai ln‘^'n.i*p t4a€«tHor>»1 rbirw # A w >r'.f D « c n 6..,.J^_1..<!? ____ O rte-.l2i -X .3) ___________ PREFACE The Maharashtra Government launched the Employ While assessing the impact of EGS on the ultimate ment Guarantee Scheme (EGS) in May, 1972. beneliciary, it was considered necessary to reach a However, in view of the enormous programmes of crjOss section of the rural community either as wage scarcity relief which were under way till 1973-74, earners or as cultivators in order to comprehend their the first serious effort of organising BGS works was background and characteristics, state of unemploy initiated after the State Assembly approved m ment, degree oU relief in under-employment ana un December, 1974 the Government Resolution employment provided by the EGS works. Factors • eiterating its recognition to the ‘right to work’ determining the labour response in different areas and as enunciated in the Directive Principles of the Consti situations lor a wide variety p t works were examined tution of India. EGS was given the statutory status so as to derive lessons for better attainment of the iin January, 1979. objectives of the EGS. 2. A fundamental premise of the scheme is that 5. The study was conducted in four districts, viz. works undertaken should provide gainful and produc Nashik, Solapur, B e^ and Bhandara representing the tive employment, gainful to the individual and produc three regions (Western Maharashtra, Marathwada and tive to the economy, in approved works to all unskilled Vidarbha). Two Talukas were selected from each persons in rural areas' who need work and are prepared of the above lôtir districts. Thus, Baglan and Kalvan to do manual work but cannot find it either on farm Talukas in Nashik district, Barshi and Karmala in or allied operations in the area or on the normal plan/ Solapur, Georai and Ambejogai in Beed and Salekasa non-plan wprks implemented by the Government and Sakoli in Bhandara district were selected. In all, Departments, the Zila Parishads, the Panchayat Sami- 155 villages, 244 works and 3404 beneficiary house ties and the Gram Panchayats. Other important holds were selected. Theêlected households were objectives of the Scheme are (a) only productive contacted in 4 rounds 5urniP the period April, 1976 works which result in the creation of durable com to October, 1978. -v* munity assets are to be taken up under the scheme. The works regaling to ininot iirigalion, soil consex- 6. Some oi the salienis findings oi the evaluation ation, land development, road development in hilly study are enumerated b^9^q^ : and inaccessible areas, plantation of trees along canal and roadsides are some illustrations of such productive (i) A total expenditiê of Rs. 216 crores had vorks. (b) Works having the cost of unskilled ele been incurred on the scheme since its incep ment of more than 60 per cent of the total cost are tion (1972-73) upto February, 1979. permitted and have tO' be invariably executed depart- This had resulted in the generation of 56.27 mentally (and not through any contractor) by various crore person days of employment. implementing agencies of the Government and Zila Parishads. (ii) In order to raise resources for implementa tion of the scheme, the State Government 3. The Evaluation Study of the Employment had levied special taxes viz, (a) taxes on Guarantee Scheme of Maharashtra was jointly conduct professions, trade callings and employment; ed by the Programme Evaluation Organisation and the (b) additional tax on motor vehicles; (c) Government of Maharashtra during 1976-78 in pur additional tax on sales tax; (d) special cess suance ,of the decision taken by the then Deputy Chair on irrigated agricultural lands; (e) surcharge man, Planning Commission and the Chief Minister of on land revenue; and (f) taxes on residential Maharashtra in 1975. The objectives of the evalua- urban lands and buildings under the Educa -ôn study were (i) to provide a description of the tional Cess Act. The State Government had, îcthods actually adopted in the field for obtaining the in turn, provided a matching contribution prescribed scheme objectives; (ii) to assess how far equal to the net qollection of taxes and the methods adopted were proving effective for the levies every year and credited to a separate attainment of these objectives; (iii) to analyse the fund called the ‘Employment Guarantee factors on which the effectiveness depends; and (iv) to Fund’. suggest action, if any, at Government, District or Taluka level, relating among other things to: (a) (iii) There was greater increase in employment - coverage (aggregate and spatial), (b) wage payment, on part-time jobs compared to those report ■ (c) ccôtdination and administration, (d) identifica ing increase in full-time employment. tion of EGS works' into sectoral plans as well as with (iv) The average wages earned were 18 per cent local district plans, (e) release and utilisation of funds, higher on EGS works than on ‘other works’. (f) progress reporting and review, Thus, these wages compared very favourably 4. The objectives of the Joint Evaluation Study thus with the prevailing wage rates. In fact, covered broadly three: main areas ot observation, viz., 53 per cent of the participating households (i) planning of rural works; (ii) organisation for exe had conceded ‘better wages’ as a primary cution of works; and (iii) the response of labour. reason for participation on EGS works. (0 (v) The EGS had reduced wage disparity bet proportion of their areas benefiting from ween men ana women smct wagci aic paiu these works. on me oasis oi tiicu: output. (xiii) The landless agricultural labourers who did (vi) The Food tor Work Programme was also not participate in the programme were miegratea witn tms scheme so as to ensure essentially ihose living hand to mcmth and mmimum consumption level. Inus part oi could not afford to wait for the wages to me wages are paid in kind m me lurm oi be paid after a week, 10 or 15 days of their wheat. participation on EGS works despite know (vii) There was predominance ,of female partici ledge of better wages on these works. A pation to tne extent oi 57 per cent in view has to be taKen whether a shift in out or bV selected worKs in piogress wmcn pohcy is called for on the part oi the State mcluaea specially major irrigatiun works. Government to encourage better participa tion from this section of the target group. (viii) About 78 per cent of the selected house- (xiv) Of the user households (those whose lands noids had leported increase m agricultmal were oenented irom tne proauctive assets prpoucuon to tne extent ot 25 per cent due created oy tne works;, yi per cent 10 uimsation oi JiOii assets. Aoout 4U per oeiunged to tne category oi cultivators where cent ot me cultivators nad taken to raismg as omy about 7 per cent were agricultural ot new crops. Tnus ECjl> had given mem labourers. Disaggregatmg tne culuvator bom tecnmcal and economic exposure to nousenolds by size oi o|)crational noldmg. acnievmg ingner production possiDilities. It was observed mat benefits of liGS asseis (ix) Increase in earnings due to utiUsation of nad gone to a large extent to tte metiium EGS assets had enabled the user house and uig farmers, ih e small anc majgmal holds m repayment of tneir loans. Out of larmers constituted only 21 per cent oi the 480 households repaying loans, 335 could user households. Nearly 78 per cent of do so pn account of increased earnmgs from me user households had reported increase works. in agriculaural production to the extent of 25 per cent. There was also change in the (x) In case of works contributing to the pro cropping pattem in case of 40 per cent of ductivity of land, viz., irrigation, soil conser the nousenolds. The EGS had thus given vation, land development, afforestation etc., both technical and economic expc»uie the proportion of expenditure incurred was to achieving higher production possibilities. 93 in 1974-75 but subsequently came down to 75 in 1978-79 (February, 1979). On 7. The most important gain is the breaking down the other hand, the allocation for roads had of ihe caste barrier since ah rural workers worKed to increased to 22.0 per cent in 1978-79 gether on a project irrespective of caste or refigious from 5.7 per cent in 1974-75 although tlie' affihations. Besides, multiplier effects of investment on Guidelines specifically laid down hmitations EGS works are important since it had provided perma on number of road works since these were nent employment creation and increased aîcultural considered less productive, production through various irrigation and soil conser vation works. Ihis had also helped in introducing (xi) In overwhelming cases of completed works, new remunerative crops. necessary complementary investment had not been made in the form of construction 8. Subsequent to the field investigations completed % • • of weMs, land -levellMig- and • land- shaping, in October, .1978,. the State .Government had taken application of fertihsers and other essential up further steps in introducmg certain changes in the inputs. This; had resulted in the sub-opti administration and implementation of the EGS mal use of the potential created. No speci Scheme. A note in Ibis' regard by the Gpvemment fic agency seemed to have been assiêd the of Maharashtra is given in Appendix B.

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