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Assessment of Economic Impacts of MGNREGA in Selected Two Villages of Karnataka State using Social Accounting Matrix (SAM),Socioeconomics Discussion Paper Series Number 26

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Title Assessment of Economic Impacts of MGNREGA in Selected Two Villages of Karnataka State using Social Accounting
Matrix (SAM),Socioeconomics Discussion Paper Series Number 26
 
Creator Murthy, P S S
Kumar, G
Gowda, V C
Bhattarai, M
Chandrakanth, M G
Girish, M R
Nagaraj, N
 
Subject Agriculture-Farming, Production, Technology, Economics
 
Description Public investment on rural infrastructure development, as done under employment
Guarantee Act (MGNREGA), besides providing income, employment and livelihood security
to rural labor force, is expected to have positive impacts on other sectors of the rural
economy as well. This includes benefit to both farm and non-farm of the rural economy.
Therefore, using framework of local economy wide modeling, particularly Social Accounting
Matrix (SAM), we have analyzed direct and total economy wide impact of MGNREGA in two
different dryland villages of Karnataka state of India: One village is in Tumkur district
(Belladamadugu village) in Southern region and the other in Bijapur district (Markabinahalli
village) in Northern region of Karnataka. SAM analysis was carried out collecting both
primary as well as secondary data for the agricultural year 2012-13 (From 1st June 2012 to
31st May 2013). Purposive sampling was done for collection of data from the households.
Following ICRISAT VDSA Study criteria, farm households were classified into five strata
namely, landless households, and marginal, small, medium and large land holding
households; and farming sector data were collected from the stratified random sampling of
these households. In additions, data was collected from different economic agents including
shops (Agricultural input shop, canteen, Provision store) and service providers (tailor,
barber, drivers, labourers and so on) regarding details of employment provided, receipts and
expenditure. Then, we have constructed SAM of 82X82 sizes for the analysis. Multiplier
effect of MNGREGS on the whole village economy of Markabinahalli and BM villages was
1.9 and 1.45, respectively. This suggests for a very weak multiplier impact of the MGNREGA
interventions. Likewise, we have also estimated income, output and employment multiplier of
the MGNREGA interventions in each of the village. On the whole, the direct and total impact
of MGNREGS on village economy was weak due to several factors, among them the
important factors were the high level of leakage of MGNREGA expenditure on several
materials and machines use that were brought from outside of the village economy. At the
end, this study also suggests policy measures for enhancing multiplier impact of the
MGNREGS program interventions in the local economy.
 
Publisher ICRISAT
 
Date 2014
 
Type Socioeconomics Discussion Paper Series
NonPeerReviewed
 
Format application/pdf
 
Language en
 
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Identifier http://oar.icrisat.org/8346/1/SEDPS_26_2014.pdf
Murthy, P S S and Kumar, G and Gowda, V C and Bhattarai, M and Chandrakanth, M G and Girish, M R and Nagaraj, N (2014) Assessment of Economic Impacts of MGNREGA in Selected Two Villages of Karnataka State using Social Accounting Matrix (SAM),Socioeconomics Discussion Paper Series Number 26. [Socioeconomics Discussion Paper Series]