A MICROECONOMIC ASSESSMENT OF MGNREGA ON INCOME AND EXPENDITURE PATTERNS IN MIZORAM: A CASE STUDY OF LAWNGTLAI DISTRICT

Abstract

This study examines the impacts of MGNREGA on income and expenditure patterns of the beneficiary households of Lawngtlai district, Mizoram. The study is conducted using multi stage sampling method covering a sample size of 374 households from the four blocks of Lawngtlai district. Percentage changed method and paired t- test approach are used to evaluate the impacts of MGNREGA on income and expenditure patterns. From the study, it is found that annual income of the beneficiary households increase by 19.12 percent as compared to the income before participation of the program. The total consumption expenditure increased by 18.24 percent per month as a result of income enhancement effect of MGNREGA program. The expenditure on consumption on food items is increased by 21.57 percent per month and that of non food items is 16.18 percent per month. The marginal propensity to consume (MPC) of MGNREGA beneficiary households on the average is 0.95 indicating that an increase of rupees 100 in income leads to an increase of rupees 95 in expenditure of the households. Thus, MGNREGA program has significantly contributed to income stabilization and better expenditure choices among rural households of Mizoram.