International Journal of Agriculture Extension and Social Development

author(s)
Wangshitula Longchar, Arunima Kumari and Niranda Sharma Leihaothabam

abstract
After gaining independence in 1947, India faced significant challenges with poverty and unemployment due to rapid population growth. The labor force grows at 2.0% annually, outpacing the 1.6% employment growth rate, necessitating long-term solutions focusing on the labor supply side. Despite a lower unemployment rate, poverty remains severe, with underemployment being a major issue, especially in rural areas where 60% of the population lives. Various national schemes were implemented to combat poverty, but many failed due to resource constraints and lack of planning. The NREGA scheme, later renamed MGNREGA, was introduced in 2005 to address these issues by providing 100 days of paid labor annually to rural households. This study is conducted to access the impact of MGNREGA scheme through income as the main aim of the scheme concentrates on creating an impact through increasing the income generation of the beneficiaries. As a result, it was found that there is a significance difference in the total yearly income of the beneficiaries with a difference of 16.01 per cent. The expenditure on the children per year was also increased by 16.8 per cent and the average budget on food was also increased by 9.6 per cent. It was also observed that the per capita savings of the beneficiaries have increased by 37.23 per cent. The beneficiaries were able to open saving accounts in banks and other schemes with the benefits received from money made through the MGNREGA scheme. The study also showed moderate behavioural change and high social participation. The study also shows the different budget allocation at district and state level. Statistical tools such as Mean, frequency and percentage method, t-test method and Karl’s correlation coefficient were used for the study. Overall, MGNREGA has had a positive impact on income generation among rural households, contributing to poverty alleviation and economic stability.