MGNREGA

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MGNREGA

  1. 1. The Mahatma Gandhi National Rural EmploymentGuarantee Act (MGNREGA) is an Indian job guaranteescheme, enacted by legislation on August 25, 2005.
  2. 2. The scheme provides a legal guarantee for one hundreddays of employment in every financial year to adult membersof any rural household willing to do public work-relatedunskilled manual work at the statutory minimum wage ofRs 120 (US$2.64) per day in 2009 prices.
  3. 3. 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 EmploymentGuarantee Act (NREGA) but was renamed on 2 October2009.
  4. 4. The Plan
  5. 5. Under the MGNREGA the Central Government meets thecost towards the payment of wage, 3/4 of material cost andsome percentage of administrative cost.
  6. 6. State Governments meet the cost of unemploymentallowance, 1/4 of material cost and administrative cost ofState council.
  7. 7. Since the State Governments pay the unemploymentallowance, they are heavily incentivized to offer employmentto workers.
  8. 8. However, it is up to the State Government to decide theamount of unemployment allowance, subject to the stipulationthat it not be less than 1/4 the minimum wage for the first 30days, and not less than 1/2 the minimum wage thereafter.
  9. 9. 100 days of employment (or unemployment allowance) perhousehold must be provided to able and willing workers everyfinancial year.
  10. 10. Funding
  11. 11. MGNREGA started with an initial outlay of $2.5bn(Rs11300cr)in year 2006–07. The funding has considerably beenincreased as shown in the table below:
  12. 12. Works
  13. 13. The MGNREGA achieves twin objectives of ruraldevelopment and employment.
  14. 14. The MGNREGA stipulates that works must be targetedtowards 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
  15. 15. Source: •www.nrega.nic.in•www.en.wikipedia.org Thank You
  16. 16. COMING UP NEXT Indian oil corporation ltdIF YOU HAVE ANY SUGGESTION, OPINION OR FEEDBACK PLEASE FEEL FREE TO WRITE US AT roshankumar.2007@rediffmail.com
  17. 17. Roshankumar S Pimpalkar

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