Employment guarantee programmeare the catalyst in the economic growth and progress in the modern era. In this direction, there is a rapid thrust for financial stability among rural masses after implementing programme like MGNRES, and many more should come into picture for further development as emerging economies countries like India. The study made an attempt to assess economic analysis of income determinants and discriminant in Andhra Pradesh.The present study was undertaken in Anantapuram, Mahabubnagar and Srikakulam districts in Andhra Pradesh state during the year 2010-2011 using multiple random sampling technique for grand total of respondents are 360 from all the 3 districts. The results revealed that, the various factors responsible for MGNREGS beneficiary household incomeamong them days of employment in agriculture, days of employment in MGNREGS and number of migrant persons per household were statistically significant indicating that they were the important variables in determining the income of MGNREGS beneficiaries. The coefficient of employment days in agriculture implies that every one day will add ` 162 per day in total household income. Similarly, for every one day employment in MGNREGS would add ` 92 per day in the total income.The results also conveys that, the main determinants of income of non-beneficiaries of MGNREGS were farm size, number of livestock units and employment in non- agriculture. Further, The results of discriminating function analysis was studied between two distinct group viz., beneficiaries and non-beneficiaries, the D2 value (0.27) was found to be statistically significant at five per cent level of probability indicating that the variables considered in the function were useful in distinguishing the two groups of MGNREGS programme as beneficiaries and non-beneficiaries in the study area.