Thesis

Economic impact of mgnregp on rural livelihood security in tumkur district, karnataka – a sam analysis

Abstract

A brief on introductory comments on the report: This work done by Mr. Gowda was supported by ICRISAT led project on” Impact of social protection program (MGNREGA) on income , poverty and social welfare of the households in SAT India”. Dr. Madhusudan Bhattarai, economist in RP-MIP is the coordinator of this project from ICRISAT. This thesis research is completed by Mr. Gowda under the supervision of Prof. Srikanthmurthy, UAS, Bangalore, and this is a part of the collaborative research between ICRISAT and University of Agricultural Science, Bangalore, wherein the student, Mr. Gowda’s research and field work activities work were supported by the collaborative research project between ICRISAT and UAS/Bangalore. Acknowledgements: This research presented in this paper was made possible through findings from CGIAR Research Program on Policies, Institutions and Markets (or CRP- PIM) and co-funded from Village Dynamics Studies in South Asia (VDSA) project sponsored by the Bill & Melinda Gates Foundation to ICRISAT and consortium of its partners. Abstract: This study highlights construction of a 65 x 65 sector Social Accounting Matrix for Belladamadugu, a predominantly rural VDSA village economy of Tumkur district for 2012-13. The key sectors are ldentified for the village along with the economic role of MGNREGP through estimation of output, income and employment multipliers. The major transactions in the SAM were among the activity account to the commodity account, factor account and household account and not among sectors within the commodity account. The key sectors identified based on the column multiplier are 'Milk production and dairy cooperative' with potential multiplier value (Rs 172 lakhs) followed by 'Tamarind harvesting and processing'(Rs 158 lakhs), 'SHGs' sector (Rs 146 lakhs). The output multiplier of MGNREGP was the least being 1.08, with employment multiplier of 0.17 and household income multiplier of 0.20(totaling 1.45). Wages earned per worker (Rs 2370) formed a meager three per cent of total income, showing the poor role of MGNREGP, despite the fact that SAM multiplier matrix showed that 66 per cent of the sectors had inter action with MGNREGP