The Parliamentary Standing Committee on Rural Development and Panchayati Raj has raised serious concerns about the Centre's inability to align daily wages under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with rising inflation. The committee criticized the persistent failure to ensure that the program's wages remain commensurate with the cost of living, undermining its objective of providing a safety net for rural households. An analysis of wage trends under MGNREGA reveals a worrying mismatch between wage growth and inflation. In recent years, MGNREGA wage growth has consistently lagged behind both general and food inflation rates, with only two exceptions: FY21 and FY24. This disparity means that the real purchasing power of workers' wages has been steadily eroded, leaving them more vulnerable to economic pressures and limiting the scheme's effectiveness in addressing rural poverty. Another pressing issue flagged by the committee is the stark disparity in MGNREGA wage rates across states. Data shows significant variation in wage levels, which are not always aligned with the respective costs of living in those regions. This inconsistency not only undermines the principle of equitable support but also exacerbates regional inequalities, with some workers receiving disproportionately lower wages compared to others despite performing similar tasks. These issues highlight the urgent need for comprehensive reforms to make MGNREGA wages more responsive to inflation and uniform across states. Addressing these challenges will require a coordinated approach that includes regular wage revisions tied to inflation indices, state-level consultations to reduce disparities, and robust monitoring mechanisms to ensure timely implementation. By taking these steps, the government can enhance the scheme's ability to fulfill its mandate of providing meaningful economic security to rural workers. Disclaimer:This image is taken from ET Bureau.