mgnrega
TRANSCRIPT
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is an Indian job guarantee scheme, enacted by legislation on August 25, 2005.
The scheme provides a legal guarantee for one hundred 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 of Rs 120 (US$2.64) per day in 2009 prices.
The Central government outlay for scheme is 40,000 crore (US$8.8 billion) in FY 2010–11.
The law was initially called the National Rural Employment Guarantee Act (NREGA) but was renamed on 2 October 2009.
The Plan
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.
Since the State Governments pay the unemployment allowance, they are heavily incentivized to offer employment to workers.
However, it is up to the State Government to decide the amount of unemployment allowance, subject to the stipulation that it not be less than 1/4 the minimum wage for the first 30 days, and not less than 1/2 the minimum wage thereafter.
100 days of employment (or unemployment allowance) per household must be provided to able and willing workers every financial year.
Funding
MGNREGA started with an initial outlay of $2.5bn(Rs11300cr) in year 2006–07. The funding has considerably been increased as shown in the table below:
Works
The MGNREGA achieves twin objectives of rural development and employment.
The MGNREGA stipulates that works must be targeted towards a set of specific rural development activities such as:
• water conservation and harvesting• afforestation • rural connectivity • flood control • construction and repair of embankments etc. • Digging of new tanks/ponds• percolation tanks • construction of small check dams etc
Source:
• www.nrega.nic.in
• www.en.wikipedia.org
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