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Impact of Income Generated from NREGA on a Household's Developmental Expenditure, with a Specific Mention of Healthcare Expenditure


  • Surabhi Somani
  • Agency : NREGA, Health Expenditure, Expenditure Analysis, Debt Trap
  • Objective :
    •   To find out whether the expenditure pattern of the people in the surveyed region has changed after the NREGA. 
    • To know the expenditure on Health from the income derived before and after NREGA.  
    • To know the expenditure on the children education from the income derived through NREGA. 
    •  To know if people working for NREGA are released from the Debt Trap



  • Background : Governments of India launched National Rural Employment Guarantee Act in 2005. It aims to provide for enhancement of livelihood security of the households in rural areas of the country by providing at least one hundred days of guaranteed wage employment. This is done every financial year to every household whose adult member volunteer to do unskilled manual work.



  • Methodology : Not Available
  • Findings :
    • There were 81% of women working in NREGA.  
    • There was a radical change in the expenditure pattern of the people surveyed  
    • 41% increase in the expenditure pattern by males.  
    • 43% increase in the expenditure pattern by females.  
    •  Expenditure on Health has increased by 31% after NREGA,  
    •  16% by Males  
    • 35% by Females  
    •    Average Expenditure on Child's Education has increased from Rs. 426/- to Rs. 546/-  
    •  Though the disposable income has increased but so is their capability to get more loans.  
    •   Only 2 people out of 138 had increased expenditure on Adverse Habits.  
    •   All the work site facilities such as drinking water, toilet facilities and creche were provided.  
    • People surveyed were happy to work in NREGA as there was no such incident of untimely payment or rude behavior.  
    •  They would like to be a part of NREGA for next year as well.



  • Recommendations : There is a large group with 46% of people in reprodutive age group which works on NREGA sites so family planning counseling can be done here.   People are getting free medicines from the hospital. So RSBY scheme would not be of any significance in this Block.   At the policy level, 100 days of work could be increased as people are ready to rejoin and it gives them the means of income



To find out whether the expenditure pattern of the people in the surveyed region has changed after the NREGA.