MGNREGA Act 2005 – Mahatma gandhi National Rural Employment Guarantee Act 2005 – MGNREGA Act 2005 – Mahatma gandhi National Rural Employment Guarantee

MGNREGA Act 2005 – Mahatma gandhi National Rural Employment Guarantee

  • The National Rural Employment Guarantee Act (NREGA, also known as the National Rural Employment Guarantee Scheme, NREGS) is an Indian legislation enacted on August 25, 2005.
  • The NREGA provides a legal guarantee for 100 days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work at the statutory minimum wage.
  • This act was introduced with an aim of improving the purchasing power of the rural people, primarily semi or un-skilled work to people living below poverty line in rural India.
  • It attempts to bridge the gap between the rich and poor in the country.
  • Roughly one-third of the stipulated work force must be women.

National Rural Employment Guarantee Act (NREGA) Guaranteeing the Right to Work Objectives •

  1. To provide legal guarantee for 100 days of wage employment to every household in the rural areas of the country each year •
  2. To combine the twin goals of providing employment and asset creation in rural areas

Salient Features

  1. • First such effort in the world to provide legal guarantee for the Right to Work •
  2. Covers all districts of the country •
  3. All rural households in rural areas, whose adult members volunteer to do unskilled manual work eligible •
  4. Job card under the Act is the right of every rural household willing to work on NREGA and applies for it •
  5. Choice of works done through village level plans and 50% or more of work to be executed by panchayati raj institutions •
  6. Work focuses on areas like water conservation, land development, provision of irrigation facility on private land of people below the poverty line, rural connectivity etc. •
  7. Contractors banned in NREGA works •
  8. Payment made through post office and bank accounts •
  9. Unemployment allowance to be paid if Government unable to provide jobs within 15 days of application •
  10. All muster rolls put up on the internet • Social audit made mandatory

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Now Here is Latest Data about MGNREGA According to Latest Economic survey 2014-15

  • With an  outlay of ` 33,000 crore in 2013-14, the scheme provided 219.72 crore person days of employment to 4.78 crore households with an average wage employment of 46 person days.
  • The share of women, SC, and ST person days in this period was 53 per cent, 23 per cent and 17 per cent respectively.
  • With wages indexed to the consumer price index for agricultural labour (CPI-AL), the average wage under the scheme has increased from ` 65 in FY 2006-07 to ` 132 in FY 2013-14, .
  • We can see that average wages of labour has been increased in past few years .
  • so increase in wages resulting in improvement in the bargaining power of agriculture labour.
  • It has also led to improved economic outcomes, especially in watershed activities, and reduction in distress migration.

In Indian Budget 2015-16 government of India increased fund for MGNREGA –

  • Finance Minister Arun Jaitley in his budget speech said that he would increase the allocation for the scheme by Rs 5,000 crore.