MNREGA stands for Mahatma Gandhi National Rural Employment Guarantee Act. In short this govt scheme is referred to as NREGA scheme. It was enacted by central govt legislation on August 25, 2005. This scheme 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 at the statutory minimum wage of INR 120 per day.
The Central government outlay for NREGA scheme was 40,000 crore (US$8.8 billion) in financial year 2010–11. But the biggest question is whether the real benefit is reaching to the unemployed needy people? The reports of NREGA funds being misused is very common in remote villages. There is a need to make people aware of NREGA social audit process.
The benefits of this scheme is not reaching to the poor people, instead it’s making people richer who are supposed to facilitate this scheme to village GRAM PANCHAYAT level.
A few facts about MNREGA:
1) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was launched on 2nd February, 2006 from Anantapur in Andhra Pradesh and initially covered 200 “poorest” districts of the country.
2) The Act was implemented in phased manner – 130 districts were added in 2007–08. With its spread over 625 districts across the country.
3) The law was initially called the National Rural Employment Guarantee Act (NREGA) but was renamed on 02 October 2009 to Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
4) 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 in rural India, whether or not they are below the poverty line.
5) Around one-third of the stipulated work force should be women.
6) Under the MGNREGA the Central Government meets the cost towards the payment of wage, 3/4 of material cost and some percentage of administrative cost. State Governments meet the cost of unemployment allowance, 1/4 of material cost and administrative cost of State council.
7) The national budget for the financial year 2009–2010 for MNREGA was Rs. 391 billion.
8) The MNREGA Job Card should be issued within 15 days of application.
9) Employment should be given within 15 days of application for work, if it is not then daily unemployment allowance as per the Act, has to be paid. The liability of payment of unemployment allowance is of the State Govts.
10) A person is entitled to a daily unemployment allowance of not less than one-fourth the wage rate for the first 30 days. For payment of unemployment deduction can be made from the salary of the gram panchayat secretary and paid to the workers.
11) A Job Card holder may submit a written application for employment to the Gram Panchayat, stating the time and duration for which work is sought.
12) The Gram Panchayat will issue a dated receipt of the written application for employment, against which the guarantee of providing employment within 15 days operates.
13) Work should ordinarily be provided within 5 km radius of the village. In case work is provided beyond 5 km, extra wages of 10% are payable to meet additional transportation and living expenses.
14) Disbursement of wages to labour has to be done on weekly basis and not beyond a fortnight in any case.
15) Permissible works predominantly include water and soil conservation, afforestation and land development works.
16) A 60:40 wage and material ratio has to be maintained. No contractors and machinery is allowed.
17) The Central Govt. bears the 100 percent wage cost of unskilled manual labour and 75 percent of the material cost including the wages of skilled and semi skilled workers
18) It is also widely criticized that NREGS has contributed to farm labour shortage.
19) Dr. Jean Drèze, a Belgian born economist, at the Delhi School of Economics, has been a major influence on MNREGA projecy.
Is central government wasting the hard earned money of tax-payers? If govt is implementing job guaranty schemes for rural unemployed youth, it should make sure the money is not diverted somewhere else. There is an urgent need of enquiry into the financial health of all past and present Sarpanch/Gram Pradhan's to ascertain their all movable and immovable assets & their source of income.
The Central government outlay for NREGA scheme was 40,000 crore (US$8.8 billion) in financial year 2010–11. But the biggest question is whether the real benefit is reaching to the unemployed needy people? The reports of NREGA funds being misused is very common in remote villages. There is a need to make people aware of NREGA social audit process.
The benefits of this scheme is not reaching to the poor people, instead it’s making people richer who are supposed to facilitate this scheme to village GRAM PANCHAYAT level.
A few facts about MNREGA:
1) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was launched on 2nd February, 2006 from Anantapur in Andhra Pradesh and initially covered 200 “poorest” districts of the country.
2) The Act was implemented in phased manner – 130 districts were added in 2007–08. With its spread over 625 districts across the country.
3) The law was initially called the National Rural Employment Guarantee Act (NREGA) but was renamed on 02 October 2009 to Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
4) 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 in rural India, whether or not they are below the poverty line.
5) Around one-third of the stipulated work force should be women.
6) Under the MGNREGA the Central Government meets the cost towards the payment of wage, 3/4 of material cost and some percentage of administrative cost. State Governments meet the cost of unemployment allowance, 1/4 of material cost and administrative cost of State council.
7) The national budget for the financial year 2009–2010 for MNREGA was Rs. 391 billion.
8) The MNREGA Job Card should be issued within 15 days of application.
9) Employment should be given within 15 days of application for work, if it is not then daily unemployment allowance as per the Act, has to be paid. The liability of payment of unemployment allowance is of the State Govts.
10) A person is entitled to a daily unemployment allowance of not less than one-fourth the wage rate for the first 30 days. For payment of unemployment deduction can be made from the salary of the gram panchayat secretary and paid to the workers.
11) A Job Card holder may submit a written application for employment to the Gram Panchayat, stating the time and duration for which work is sought.
12) The Gram Panchayat will issue a dated receipt of the written application for employment, against which the guarantee of providing employment within 15 days operates.
13) Work should ordinarily be provided within 5 km radius of the village. In case work is provided beyond 5 km, extra wages of 10% are payable to meet additional transportation and living expenses.
14) Disbursement of wages to labour has to be done on weekly basis and not beyond a fortnight in any case.
15) Permissible works predominantly include water and soil conservation, afforestation and land development works.
16) A 60:40 wage and material ratio has to be maintained. No contractors and machinery is allowed.
17) The Central Govt. bears the 100 percent wage cost of unskilled manual labour and 75 percent of the material cost including the wages of skilled and semi skilled workers
18) It is also widely criticized that NREGS has contributed to farm labour shortage.
19) Dr. Jean Drèze, a Belgian born economist, at the Delhi School of Economics, has been a major influence on MNREGA projecy.
Is central government wasting the hard earned money of tax-payers? If govt is implementing job guaranty schemes for rural unemployed youth, it should make sure the money is not diverted somewhere else. There is an urgent need of enquiry into the financial health of all past and present Sarpanch/Gram Pradhan's to ascertain their all movable and immovable assets & their source of income.
