MGNREGA Impact on Rural Asset Creation: a study in two villages of Prakasam District of Andhra Pradesh, India uri icon


  • The Government of India created a historic Act, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005, to address the twin challenges of reducing Poverty and Creating Employment, which guarantees employment of every rural household of the country for 100 days, the largest employment-generating programme in the world, ensuring the right to work This paper focuses on an in-depth primary survey in two villages in Prakasham district of Andhra Pradesh, and evaluation of the effectiveness of MGNREGS in creating individual and community level assets, and the financial and economic sustainability of these assets created under the programme in the selected study sites. The study finds that participants spent the additional wage earnings from MGNREGS mostly on procurement of the basic household materials, food security by purchasing of food items required for the family, and livelihood intervention as few able to purchase buffalos from the saving out of MGNREGS work. Some of the households spent the additional wage income also on payment of educational fee to the children and improving the quality of life for future generation. Likewise, substantial level of community assets have been also created by the programme in the study villages (such as rural road, digging up community water tank, etc.); however, the sustainability of community assets created through MGNREGA is in question, unless some collective measures are not taken. Based on the empirical findings at the study villages, at the end, the study also provides recommendations for enhancing asset creation and sustainability of asset for wider benefits to the rural communities

publication date

  • 2014