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Indian Economy / Social Development Programs

National Rural Employment Generation Scheme


    Mahatma Gandhi National Rural Employment Guarantee Scheme ( MGNREGA ) is a flagship programme, which came into force on passing the National Rural Employment Guarantee Act on August 25, 2005.

    • The main intention of the programme is to raise the livelihood security of the rural households by assuring at least hundred days of wage employment in a given financial year to each of the rural households whose adult members are interested in doing unskilled manual work.
    • This scheme was launched on 2nd February, 2006 in Anantapur District of Andhra Pradesh. It is being implemented by Ministry of Rural Development, Government of India.
    • The Scheme was being implemented in 200 districts in the 1st phase and later got covered to the entire territory of India with some exceptions like districts that are having 100% urban population.
    • The Gram Panchayat will issue a Job Card to all the adult members of a household who are willing to work, after due verification. Employment has to be furnished within 15 days after being applied for work, otherwise daily unemployment allowance must be paid. The State Government has the liability to pay unemployment allowance to the concerned persons.
    • Generally, work shall be provided within 5km radius of the village in which the person resides. If it is beyond 5km range, extra 10% wage is to be paid in order to compensate for transportation and living expenses.
    • Wages shall be given as per the Minimum Wages Act, 1948 to the agricultural labourers in the State. Wages need to be paid off every week or in any case within a fortnight. At least one-third of the beneficiaries need to be women, who have requested for work. Equal wages are be given to both men and women.
    • A 60:40 expense ratio for wages and materials has to be maintained. Contractors and machinery are not being allowed. There needs to be a Social Audit that should be conducted by the Gram Sabha.