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NREGA
National Rural Employment Guarantee Act

Group 10
Ravi Shanker 280/45
Srikanth Kolli 208/45

Rahul Meena 276/45
Krishnenthu Raja 222/45
Wage Employment Programs
Historical Perspective

• Maharashtra Model
• Bureaucracy
• Shortage of funds
• Lack of right planning
• Lack of local focus
The National Rural Employment
Guarantee Act (NREGA)

“Act of the people, by the people, and for the people”
NREGA - Overview
Salient Features
Employment to all those who are willing to work (100 days)
Free registration with a job guarantee within 15 days of application
At least 1/3rd of the employees must be women
Fixed minimum wage rate and no upper limit
Weekly disbursement of wages and delays not beyond a fortnight

Unlimited supply of funds for this project
Objective of NREGA
Unemployment
• Enhancement of
livelihood security of
households
• Arrest rural migration

Sustained Development
• Create rural assets
• Create livelihood
resource base
• Restore environment
Expectations from
Expectations from
NREGA
NREGA
Primary
Supplement employment opportunities
Auxiliary
 Regenerate natural resource base
of rural livelihood for sustainable
development
Process Outcomes
Strengthen grass root processes of
democracy
 Infuse transparency and accountability
in governance
NREGA COVERAGE (1st Nationwide employment scheme )
State and Local Govt.
Roles and Responsibilities
State and Local Government
State Rural Employment Guarantee Scheme (REGS)

• 25 per cent of the cost of material and wages for semiskilled/ skilled workers
• Unemployment allowance if the state is unable to
provide employment within 15 days
• Administrative expenses of the State Employment
Guarantee Council
Other Institutions
Funds
Funds
NREGA ‘09 Budget Allocation -39,000 Cr.

Central Govt. provides only 75% of the material costs,
promoting labour intensive works in NREGA
Components of Expenditure
• Material Cost
• Tamilnadu and Mizoram have achieved almost Zero
expense on material
• Orissa has high Material expenses owing to “royalties”
• Expenditure on Wages
• Administrative expenses
• Nagaland and Gujarat have high administrative
expenses
A Snapshot for 07-08
Progress Report
Implementation & Effectiveness of NREGA
144 Crore person-days of employment
34 Mn Households benefited
• Improved – ‘employment per rural household’, share
of women in workforce, expenditure per district, share
of wages in total expenditure
•Decreased % of ST’s benefiting from NREGA
•Increase in daily wages by whopping 15%
•Improved utilization of funds from 73% to 80%
State wise performance
State wise performance
Leaders
• Rajasthan, Madhya
Pradesh and Chhattisgarh
• Account for more than
half of the total
employment
• Haryana and Uttarakhand
• Improved Women
workforce

Laggards
• Bihar, Gujarat, Haryana,
Maharashtra, Punjab and
West Bengal
• Perform worse than
previous years

• Punjab, Bihar and HP
• Less than 33% women
workforce
Participation of Women

WOMEN
43%

•Tamil Nadu (82%)
•Rajasthan (69%)
•Kerala (67%)
•Andhra Pradesh (56%)
•Karnataka (52%)
•Gujarat (49%)
•UP (15%)
•J&K(1%)

At least 1/3rd of the beneficiaries shall be women who have registered and requested for work under the Scheme (NREGA ACT,
Schedule II, Section 6) Year-2007-08
Regenerating Natural Resource Base of Rural Livelihood
Community Building
Building Rural India
Field Visit To Block Office
Facts

• Observations

• 3000 beneficiaries in
2009 out of 30,000
bpl households
• 10% women < state
average of 17%
• All projects are on
rural connectivity
• Rs 80 a day as base

• Central role of Gram
Panchayat
• Unlimited funds, yet
Delays in wage
checks and Job cards
• No record of
measuring asset
creation
Case : NREGA in Kerala
NREGA in Kerala
• Highest literacy rate (90.86)
• Very high rate of unemployment
• Tendency to link literacy to employment (myth)
• First implemented on 5th Feb 2006
• Only in 4 districts (Palakkad, Waynad, Idukki and Kasargod)
• These districts had very low unemployment rate
Major features
• Popularity of Trade Unions
• Village Panchayats played the pivotal role with the
help of technical staffs
• Effectiveness of ‘Kudumbasree’
– Organized into Neighborhood group (NHG)  Area
Development Society (ADS)  Community Development
Society (CDS)
– ADS played a pivotal part in NREGA
Major features
• Focus on eco-restoration works
• Wages are paid directly to individual bank accounts
Problems
• Lag in the implementation (only 4/14 districts)
Problems
• Minimal participation from SC’s and ST’s
• One of the lowest
Achievements
• Major progresses after 2007
• Total corruption free implementation
– Panchayats took the responsibility seriously
– Implemented the programme very fast

• Effectiveness of Kudumbasree system
– Community of poor people
– Created a feeling of unity among them
– Doing work for their localities created an urgency
Achievements
• Participation of women
– Helped to empower women
– Participated in important decisions of her family
and society
– Equal wage for men and women
Achievements

Participation of women in NREGA
Achievements
• Public works done by local peoples
– Reduced corruption
– Increased urgency

• Importance given to natural resource
management and environment protection
• Setup of Labour Banks
– Develop skills of the workers
– Panchayats to teach Panchayats
Way Ahead
Way Ahead
• NREGA is here to stay
 Monitor the programme effectively
 Village level resource planning and development
 Other development programs like Bharat Nirman should sync
with NREGA
 From quantitative employment generation to sustainable
development through asset building
• Representatives
 Proper election and training
 More power to Panchayat Raj
Thank You

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NREGA

  • 1. NREGA National Rural Employment Guarantee Act Group 10 Ravi Shanker 280/45 Srikanth Kolli 208/45 Rahul Meena 276/45 Krishnenthu Raja 222/45
  • 2.
  • 3. Wage Employment Programs Historical Perspective • Maharashtra Model • Bureaucracy • Shortage of funds • Lack of right planning • Lack of local focus
  • 4. The National Rural Employment Guarantee Act (NREGA) “Act of the people, by the people, and for the people”
  • 5. NREGA - Overview Salient Features Employment to all those who are willing to work (100 days) Free registration with a job guarantee within 15 days of application At least 1/3rd of the employees must be women Fixed minimum wage rate and no upper limit Weekly disbursement of wages and delays not beyond a fortnight Unlimited supply of funds for this project
  • 6. Objective of NREGA Unemployment • Enhancement of livelihood security of households • Arrest rural migration Sustained Development • Create rural assets • Create livelihood resource base • Restore environment
  • 7. Expectations from Expectations from NREGA NREGA Primary Supplement employment opportunities Auxiliary  Regenerate natural resource base of rural livelihood for sustainable development Process Outcomes Strengthen grass root processes of democracy  Infuse transparency and accountability in governance
  • 8. NREGA COVERAGE (1st Nationwide employment scheme )
  • 9. State and Local Govt. Roles and Responsibilities
  • 10. State and Local Government State Rural Employment Guarantee Scheme (REGS) • 25 per cent of the cost of material and wages for semiskilled/ skilled workers • Unemployment allowance if the state is unable to provide employment within 15 days • Administrative expenses of the State Employment Guarantee Council
  • 12. Funds
  • 13. Funds NREGA ‘09 Budget Allocation -39,000 Cr. Central Govt. provides only 75% of the material costs, promoting labour intensive works in NREGA
  • 14. Components of Expenditure • Material Cost • Tamilnadu and Mizoram have achieved almost Zero expense on material • Orissa has high Material expenses owing to “royalties” • Expenditure on Wages • Administrative expenses • Nagaland and Gujarat have high administrative expenses
  • 15. A Snapshot for 07-08
  • 17. Implementation & Effectiveness of NREGA 144 Crore person-days of employment 34 Mn Households benefited • Improved – ‘employment per rural household’, share of women in workforce, expenditure per district, share of wages in total expenditure •Decreased % of ST’s benefiting from NREGA •Increase in daily wages by whopping 15% •Improved utilization of funds from 73% to 80%
  • 19.
  • 20. State wise performance Leaders • Rajasthan, Madhya Pradesh and Chhattisgarh • Account for more than half of the total employment • Haryana and Uttarakhand • Improved Women workforce Laggards • Bihar, Gujarat, Haryana, Maharashtra, Punjab and West Bengal • Perform worse than previous years • Punjab, Bihar and HP • Less than 33% women workforce
  • 21. Participation of Women WOMEN 43% •Tamil Nadu (82%) •Rajasthan (69%) •Kerala (67%) •Andhra Pradesh (56%) •Karnataka (52%) •Gujarat (49%) •UP (15%) •J&K(1%) At least 1/3rd of the beneficiaries shall be women who have registered and requested for work under the Scheme (NREGA ACT, Schedule II, Section 6) Year-2007-08
  • 22. Regenerating Natural Resource Base of Rural Livelihood
  • 24.
  • 25. Field Visit To Block Office Facts • Observations • 3000 beneficiaries in 2009 out of 30,000 bpl households • 10% women < state average of 17% • All projects are on rural connectivity • Rs 80 a day as base • Central role of Gram Panchayat • Unlimited funds, yet Delays in wage checks and Job cards • No record of measuring asset creation
  • 26. Case : NREGA in Kerala
  • 27. NREGA in Kerala • Highest literacy rate (90.86) • Very high rate of unemployment • Tendency to link literacy to employment (myth) • First implemented on 5th Feb 2006 • Only in 4 districts (Palakkad, Waynad, Idukki and Kasargod) • These districts had very low unemployment rate
  • 28. Major features • Popularity of Trade Unions • Village Panchayats played the pivotal role with the help of technical staffs • Effectiveness of ‘Kudumbasree’ – Organized into Neighborhood group (NHG)  Area Development Society (ADS)  Community Development Society (CDS) – ADS played a pivotal part in NREGA
  • 29. Major features • Focus on eco-restoration works • Wages are paid directly to individual bank accounts
  • 30. Problems • Lag in the implementation (only 4/14 districts)
  • 31. Problems • Minimal participation from SC’s and ST’s • One of the lowest
  • 32. Achievements • Major progresses after 2007 • Total corruption free implementation – Panchayats took the responsibility seriously – Implemented the programme very fast • Effectiveness of Kudumbasree system – Community of poor people – Created a feeling of unity among them – Doing work for their localities created an urgency
  • 33. Achievements • Participation of women – Helped to empower women – Participated in important decisions of her family and society – Equal wage for men and women
  • 35. Achievements • Public works done by local peoples – Reduced corruption – Increased urgency • Importance given to natural resource management and environment protection • Setup of Labour Banks – Develop skills of the workers – Panchayats to teach Panchayats
  • 37. Way Ahead • NREGA is here to stay  Monitor the programme effectively  Village level resource planning and development  Other development programs like Bharat Nirman should sync with NREGA  From quantitative employment generation to sustainable development through asset building • Representatives  Proper election and training  More power to Panchayat Raj