Barely two months after it was launched amidst great hope, the National Rural Employment Guarantee Act (EGA) has run into a roadblock with the Centre deciding to cut down the minimum wages.

A few days ago, after analysing the average payments to workers employed under the EGA, the Centre decided to fix a uniform wage rate of Rs 60. The earlier directive allowed states to fix their own wage rates. If the new decision is implemented, the states would be forced to bring down the wages too. In case they wish to protect the existing rates, they would have to shell out the difference from their own resources.

The Centre’s decision has come under scathing criticism from economists and social workers, who fear that the unilateral decision will cause huge damage to the EGA, which has the potential to change the face of rural India. ‘‘We would protest the Centre’s move. Many states today offer more than Rs 60 to labourers enrolled for the EGA works. If the Centre goes ahead with the cut, it would be a huge loss to the workers,’’ social activist Aruna Roy said. Roy, who has been among the biggest advocates of the EGA, recently conducted a padyatra in Dungarpur to assess the popularity of the scheme among the villagers. Dungarpur is one of the six districts in Rajasthan where this scheme is being implemented.

During the march, which was attended by social workers from all across the country and economists such as Jean Dreze, an on-the-spot audit of the works was also conducted. The results of the mass audit indicate that the scheme has not only become hugely popular in the tribal belt but has also emerged as a model that keeps corruption at the bare minimum.

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