The government falls short of constitutional requirements even after it indexes wage rates in MGNREGA to inflation.
As a sop to the millions of Indians who work on the Mahatma Gandhi National Rural Employment Guarantee Act (MgNREGA) programmes, the central government has decided to index the wage rate in the scheme to the official Consumer Price Index for Agricultural Labourers (CPIAL). This decision was announced within days of Prime Minister Manmohan Singh making it clear that the government cannot set the MGNREGA wages at the statutory minimum in each state in accordance with the provisions of the Minimum Wages Act of 1948.
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