The performance of National Rural Employment Guarantee Scheme in Rajasthan was debated for its stupendous performance in the initial years of the scheme, but also for the relative sharp decline after 2010. Based on a large representative primary survey, this paper argues that the decline in performance of this scheme in Rajasthan is not entirely due to the lack of demand. Instead, the supply-driven top-down nature of the programme has led to a "discouraged worker" syndrome with workers showing disinterest in demanding work and passively waiting for availability of NREGS work.

Two approaches are available for identifying households below the poverty line – the score-based ranking approach proposed by the N C Saxena Committee and an alternative proposed by Jean Dreze and Reetika Khera. Comparing these approaches for Udupi district in Karnataka shows that the former does a fair job of revealing how households are placed on the economic spectrum but excludes more deserving households than the latter. Also, when it comes to implementation, the latter is transparent and relatively much faster.