MPIA-12823 Macro- Economic Impact of MGNREGA in India: An Analysis in CGE Modeling Framework

Abstract

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is one of the flagship programmes of the Government of India. The programme aims to deal with rural poverty and unemployment by assuring economic security to the rural poor, by providing guaranteed wage employment when other employment alternatives are scarce or inadequate. This study aims to evaluate the macroeconomic impacts of the MGNREGA on the Indian economy by running counterfactual simulations with the aid of PEP-1-1 CGE model. The findings indicate that MGNREGA has increased the real GDP of the economy as well as household income and real consumption budget. The increase in household income is higher for the bottom quintile classes in comparison to the richer households. If the MGNREGA expenditure is reallocated to educational services, medical services, and public administration, the GDP of the economy as well as household income will decline.


Members

Project leader: Akhilesh Kumar Sharma

Project researchers: Charanjit Kaur


Working Papers

Title Modified Size Comments Recommendations
Macro-Economic Impact of MGNREGA in India: An Analysis in CGE Modeling Framework 2017-05-11 778.36KB 0 0

Policy Briefs

Title Modified Size Comments Recommendations
Macroeconomic impact of the MGNREGA guaranteed rural work scheme in India 2017-04-06 273.73KB 0 0

Proposal

Title Modified Size Comments Recommendations
2015-06-16 153.54KB 0 1

Final report

Title Modified Size Comments Recommendations
2016-10-18 431.54KB 0 0

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