Mahatma Gandhi National Rural Employment Guarantee Scheme and Socio-economic conditions of Rural households: A comparative study of Tamil Nadu and Maharashtra

Abstract

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) is one of the most significant rural development initiatives implemented by the Government of India to enhance livelihood security through guaranteed wage employment. The scheme aims to reduce rural poverty, generate employment opportunities, improve income security, create durable assets, and promote inclusive socio-economic development. Despite its nationwide implementation, the effectiveness of MGNREGS varies across states due to differences in socio-economic conditions, administrative efficiency, and implementation practices. In this context, the present study examines the impact of MGNREGS on the socio-economic conditions of rural households in Tamil Nadu and Maharashtra. The study adopts a descriptive and comparative research design and utilizes both primary and secondary data sources. Primary data were collected from 600 MGNREGS beneficiaries, comprising 300 respondents from Tamil Nadu and 300 respondents from Maharashtra, through a structured questionnaire. Secondary data were obtained from government reports, MGNREGA annual reports, journals, books, and official publications. Statistical tools such as percentage analysis, correlation analysis, regression analysis, Analysis of Variance (ANOVA), and independent sample t-tests were employed to analyze the data. The findings reveal that MGNREGS has significantly contributed to employment generation, household income enhancement, consumption expenditure, healthcare expenditure, and overall livelihood security among rural households. The results further indicate that Tamil Nadu performs relatively better in terms of employment generation, worker participation, and beneficiary satisfaction, while Maharashtra demonstrates stronger outcomes in asset creation, water conservation, and rural infrastructure development. The hypothesis testing confirms a significant positive relationship between MGNREGS participation and socio-economic improvement among beneficiaries. The study concludes that MGNREGS has played a crucial role in improving the socio-economic well-being of rural households in both states. However, challenges such as delayed wage payments, administrative inefficiencies, and regional disparities continue to affect programme performance. The study recommends strengthening implementation mechanisms, ensuring timely wage disbursement, enhancing transparency, and promoting greater community participation to improve the effectiveness of the scheme. The findings contribute to the understanding of rural employment programmes and provide valuable insights for policymakers in designing strategies for sustainable and inclusive rural development.