The study has tried to capture the effect of MGNREGA by selecting two sets of villages in the Gulbarga district of Karnataka, one which have utilized 75 per cent of allocated funds and the other which have utilized less the 25 per cent of allocated funds under MGNREGA. The study is based on primary data obtained from 120 sample farmers belonging to five village panchayats. In redgram, a significant difference has been observed in use of machine power and labour use between fully and partially-implemented MGNREGA villages, but no difference has been recorded in the use of material inputs. Similarly, in the rabi jowar, there is a significant difference in labour use but not in the use of machine power and material inputs between two categories of villages. The total cost of cultivation in fully-implemented MGNREGA villages has been found higher by 22.91 per cent and 16.37 per cent in red gram and rabi jowar, respectively. The labour productivity of male and female has been noticed lower in fully-implemented MGNREGA villages for all operations in both the crops. The study has given some suggestions to address the problem of labour scarcity in fully-implemented villages.