Demand under MGNREGS is not a true indicator of rural distress: Eco Survey

The Economic Survey 2023-24 indicates that MGNREGS demand is not a true indicator of rural distress. Despite high rural unemployment, states like Bihar and UP utilized less MGNREGS funds than states with lower poverty levels, such as Tamil Nadu and Kerala. The survey highlights that MGNREGS fund usage is more influenced by institutional capacity and wage rate variations than by actual rural distress.