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National Rural EmploymentNational Rural Employment

Guarantee ActGuarantee Act((August 25, 2005)August 25, 2005)

Abhishek Kumar

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NREGANREGA

National Rural Employment Guarantee Act 2005National Rural Employment Guarantee Act 2005

A job guarantee schemeA job guarantee scheme

any adult who is willing to do unskilled manualany adult who is willing to do unskilled manual

work at the minimum wage is entitled to beingwork at the minimum wage is entitled to beingemployed on local public works scheme withinemployed on local public works scheme within

fifteen days of applyingfifteen days of applying

Focus is on employment generationFocus is on employment generation Now known as Mahatma Gandhi National RuralNow known as Mahatma Gandhi National Rural

Employment Guarantee ActEmployment Guarantee Act

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FeaturesFeatures

Guaranteed employment of 100 days in a financial yearGuaranteed employment of 100 days in a financial year

Wage rate at the statutory minimum wage of agriculturalWage rate at the statutory minimum wage of agricultural

labourers in state, unless the Central Government notifieslabourers in state, unless the Central Government notifies

the minimum amountthe minimum amount Work should be within a radius of 5 km from theWork should be within a radius of 5 km from the

applicants residenceapplicants residence

Provision of Unemployment AllowanceProvision of Unemployment Allowance

NREGA mandates a minimum of 33% participation ofNREGA mandates a minimum of 33% participation ofwomenwomen

Not confined only to BPL familiesNot confined only to BPL families

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Basic objective is to enhance theBasic objective is to enhance the

livelihood securitylivelihood security in rural areas alongin rural areas along

with other activities like generatingwith other activities like generatingproductive assets, protection ofproductive assets, protection of

environment, empowering rural women,environment, empowering rural women,

reducing ruralreducing rural--urban migration andurban migration andfostering social equity.fostering social equity.

ObjectiveObjective

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Cost SharingCost Sharing

Central Government to pay for:Central Government to pay for:

-- wage costswage costs

-- 75% of material cost75% of material cost-- some administrative costssome administrative costs

State Government to pay for:State Government to pay for:

-- 25% of material costs25% of material costs-- Other administrative costsOther administrative costs

-- Unemployment allowanceUnemployment allowance

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Present DetailsPresent Details

Allocations hiked by 144% to Rs. 39,100 crore inAllocations hiked by 144% to Rs. 39,100 crore in

Union Budget for 2009Union Budget for 2009--10 & has been maintained at10 & has been maintained at

Rs. 40100 crore for 2010Rs. 40100 crore for 2010--11.11.

In 09In 09--10, 4.47 crore households provided10, 4.47 crore households provided

employment generating 215.63 personemployment generating 215.63 person--daysdays

Women constitute 49% of the total participationWomen constitute 49% of the total participation

SCs and STs account for 52% of the totalSCs and STs account for 52% of the total

beneficiariesbeneficiaries

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ProcessProcess

Interested households register with Gram PanchayatInterested households register with Gram Panchayat

Adult members of registered households apply forAdult members of registered households apply for

workwork

Gram Panchayat issues a Job Card to eachGram Panchayat issues a Job Card to eachapplicantapplicant

Employment should be provided within 15 days ofEmployment should be provided within 15 days of

receipt of information and within 5 kilometers fromreceipt of information and within 5 kilometers from

their place of residencetheir place of residence

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Process contdProcess contd

If place of work is more than 5 kilometers from theIf place of work is more than 5 kilometers from theplace of residence then an extra wage of 10% isplace of residence then an extra wage of 10% is

provided to the applicant meet the transportation andprovided to the applicant meet the transportation and

living expensesliving expenses

If employment is not provided within 15 days fromIf employment is not provided within 15 days from

the date of application then he is entitled to a dailythe date of application then he is entitled to a daily

unemployment allowanceunemployment allowance

NREGA follows a demand driven process in whichNREGA follows a demand driven process in whichworks are initiated only after a specified number ofworks are initiated only after a specified number of

applications by wage seekers are receivedapplications by wage seekers are received

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Implementation andImplementation andMonitoringMonitoring

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Implementing PrinciplesImplementing Principles

Block is the main unit of implementationBlock is the main unit of implementation

In each block, a Programme Officer is to coIn each block, a Programme Officer is to co--

ordinate the implementationordinate the implementation

Gram Panchayats are the main implementingGram Panchayats are the main implementing

agenciesagencies

Accountability is to Gram SabhaAccountability is to Gram Sabha

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MonitoringMonitoring

(As per the guidelines of Ministry of Rural Development)(As per the guidelines of Ministry of Rural Development)

The Panchayat concerned will have the right to inspectThe Panchayat concerned will have the right to inspect

and review the progress of any work under its area ofand review the progress of any work under its area of

jurisdictionjurisdiction For each work sanctioned, there will be a supervisoryFor each work sanctioned, there will be a supervisory

committee of local people to ensure that the work hascommittee of local people to ensure that the work has

been properly done.been properly done.

District Level monitoring will do a complete verificationDistrict Level monitoring will do a complete verificationof the works completed under the programmeof the works completed under the programme

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Social AuditSocial Audit

A social audit is a process in which the people workA social audit is a process in which the people work

with the government to monitor and evaluate thewith the government to monitor and evaluate the

planning and implementation of a scheme orplanning and implementation of a scheme or

programme, or indeed of a policy or law.programme, or indeed of a policy or law.

Social audit process is critically dependent on theSocial audit process is critically dependent on the

demystification and dissemination of all relevantdemystification and dissemination of all relevantinformationinformation

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Social Audit in NREGASocial Audit in NREGA

Social Audit to be conducted once in six monthsSocial Audit to be conducted once in six months

Prior planning and announcement of auditPrior planning and announcement of audit

Programme Officer responsible for audit (planningProgramme Officer responsible for audit (planning

and availability of documents)and availability of documents)

Formation of Social Audit Committee (SAC) havingFormation of Social Audit Committee (SAC) having

members comprising workers (onemembers comprising workers (one--third must bethird must be

women)women)

Public representations and concerned officials toPublic representations and concerned officials to

attendattend

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DeficienciesDeficiencies

Lack of technical and professional support forLack of technical and professional support for

implementing projects under NREGAimplementing projects under NREGA

Delays in payment to workersDelays in payment to workers

Issues of corruption and leakagesIssues of corruption and leakages

Poor implementation in states like Bihar and U.P.Poor implementation in states like Bihar and U.P.

Less coverage areaLess coverage area

Only 19% of the 8,50,000 differentlyOnly 19% of the 8,50,000 differently abledabled peoplepeopleregistered for this scheme have got workregistered for this scheme have got work

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AchievementsAchievements

53 million families got work in 0953 million families got work in 09--1010

3 billion person3 billion person--days of work generated in 09days of work generated in 09--1010

against 86 million in 03against 86 million in 03--0404

Scheduled Castes and Scheduled Tribes constituteScheduled Castes and Scheduled Tribes constitute52% of the total beneficiaries in 0952% of the total beneficiaries in 09--1010

Womens participation is up to 50%Womens participation is up to 50%

Increase in household income: Post NREGA,Increase in household income: Post NREGA,minimum daily wage has increased from Rs. 75 tominimum daily wage has increased from Rs. 75 to

Rs. 87 (upto July, 2009)Rs. 87 (upto July, 2009)

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Strategies forImprovementStrategies forImprovement

Setting up of a team to ensure that the needy get theSetting up of a team to ensure that the needy get the

job cards, the workers are fully paid and substantialjob cards, the workers are fully paid and substantial

assets are createdassets are created

In the long run, Panchayats should be empowered toIn the long run, Panchayats should be empowered to

train officials and build capacity to ensure propertrain officials and build capacity to ensure proper

implementationimplementation

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Thank YouThank You