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The dynamism cast by the implementation of MGNREGA in India has been quite encouraging as evident from the burgeoning empirical studies examining the status and outcomes of implementation and performance of the programme, both at micro and meso levels. The programme has been implemented for about eight years and become integral part of social safety net for the large part of the population living in rural areas. Though over the years budgetary provision for the programme is increasing in monetary terms, many of the its performance parameters have shown either stagnation or decline in recent years with varying experience from across the states and districts. It is not surprising that questions are asked about the continuation of the programme itself in its present form with a huge fiscal commitment.   The protagonists supporting the continuation of the programme are divided. While one section says the universal nature of the programme must be maintained in the present form covering the entire country, the implementation part needs to be looked into to make it relevant for the present time. The other section is of the view that the programme must be downsized and implemented in those areas where it is needed and the nature of work undertaken should include more non-farm activities keeping in view the changes in aspirations of rural population.   The current review takes a critical look at select studies unraveling various impacts of MGNREGA both at micro and meso levels beginning from its inception in 2005. These studies have covered relevant performance indicators of MGNREGA across states, highlighting the common and unique issues.  Some of these studies used inter-disciplinary research methods relying on both quantitative and qualitative techniques.   The review highlights the finding of researchers that the programme has been deviating from its desired goal originally set by the planners. Many kinds of leakages are found in the implementation of the programme - be it in giving mandated days of employment or payment of wages or participation of marginalized sections. It is also evident from the existing studies that often the gram sabhas or the official machinery responsible for  the  actual  implementation  could  not  undertake  the  mandated  responsibility  leading  to wastage and siphoning of the public money, and general discontentment.  It is also found that beneficiaries are often taken for a ride for not knowing the nuances of the programme. Notwithstanding such lacune studies do show that MGNREGA has had some impact on the rural economy. There were evidences of increasing employment opportunity, better wage rate, and flexible working hours. The impact of the programme is noticed in  strengthening rural  institutions like  gram sabhas,  increase in  access  to  financial institutions like banks, better gender parity in wages and employment opportunities for women, construction of essential physical infrastructures in the village, improvement in natural resource base  of  the  village,  and  greater  accountability of  government machinery because of people’s right to work. The review also found that the studies typically acknowledged the potential of MGNREGA as one of the most viable social safety net for rural poor. However, the studies are not clear whether the programme itself has led or has the potential to lead other sectors of the rural economy because of availability of extra cash in the hands of the people.  

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The paper examines spatial differences and the change in the share of consumption expenditure on selected food and non-food items during 2004-05 and 2007-08 covering rural and urban sectors for 18 major states in India. The analysis is located in the contemporary debate cover the declining share of food expenditure across almost all income strata, including the poor, in rural and urban sectors in the country. Arguably a part of the shift away from food expenditure is explained by the lifestyle related impacts, recent evidence has highlighted the influence of some of the more compelling factors, such as the increased private cost of health, education and other basic services. The recent inflationary trends are likely to have worsened the scenario with respect to household's ability to meet their basic needs. The analysis, tracing the changes in the average consumption expenditure revealed that: a) whereas the expenditure on food in absolute terms has increased almost universally, the share in total expenditure has declined in most of the states; b) the rural-urban gap in food consumption has increased marginally; c) the share of expenditure in education has decline in the case of nearly 50 per cent of the major states; d) for almost all the states the share of health expenditure has declined in both rural as well as urban areas. Conversely the share of expenditure on other non-food items such as fuel, transport and rent has increased. The changes observed in the expenditure pattern may have significant welfare implications across different segments of the population as discussed in the paper.

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