Controlling surplus population, on the one hand and use of underutilized resources on the other, have induced governments of the developing world to adopt measures so that, poverty, underdevelopment and social insecurity are managed outside the sphere of core sector, especially through rural employment generation. MGNREGS of India is one such programme. Many researchers suggested the need for government intervention in job creation. On the other hand, some researchers have criticized such policies on the ground that these programmes misallocate resources towards relatively less productive frontiers. We propose theoretically that, the problem is not so much with the revenue expenditure, rather the bottleneck lies on the supply-side and can be mitigated by introducing infrastructural factors. Moreover in this chapter, we have tried to criticize the quality of jobs done and types of infrastructure generated through MGNREGS as it seems that both fail to increase food production and thus create some conflicts between rural and urban sectors.