Note on MGNREGA (Download PDF)


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MGNREGA Scheme has seen major changes in the last two years with use of ICT tools, space technology, and focus on improving livelihood of people. MGNREGA Provides diversified livelihood opportunities through convergent programme implementation.

Image of MGNREGA data

Image of MGNREGA Data

Image of MGNREGA data

What is MGNREGS?

Mahatma Gandhi National Rural Employment Guarantee Scheme Act aims at enhancing the livelihood security of people in rural areas by guaranteeing hundred days of wage-employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work.

Image of Work Flow of NREGA

Image of Work Flow of NREGA

Image of Work Flow of NREGA

Important Changes in MGNREGA

  • Provides diversified livelihood opportunities through convergent programme implementation

  • New measures include electronic fund management system (eFMS), Aadhaar seeding, Geo tagging of assets and strengthening of Social Audit System provide transparency and accountability in implementation.

  • Emphasis on proper work file maintenance and setting up of Citizen Information Boards as part of Janta Information Systems.

  • The current Financial Year by the highest ever budget allocation of Rs. 48000 Cr to make sure availability of funds not a constraint for the implementation of the program.

  • To ensure that MGNREGA workers receive their wages on time, National Electronic Fund Management System (NeFMS) was put in place with 96 % of wages being paid directly to the beneficiaries’ bank accounts.

  • Intense monitoring and accountability for delays in payments ensures 85 % of the wages being paid to the workers in time.

  • Completed MGNREGA works are now geo tagged and made available in public domain improving and enhancing transparency.

  • More than 2 Cr assets have been geo tagged so far.

  • Ministry has made it mandatory to geo tag three stages of an asset creation.

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Created with Highcharts 5.0. 14YearTimely Payment Status (%) Timely Payment Status505026.8526.8536.9236.9242.1642.1684.8784.87Timely Payment StatusFY 2013 - 2014FY 2014 - 2015FY 2015 - 2016FY 2016 - 2017FY 2017 - 20180255075100 FY 2014 - 2015Timely Payment Status: 26.85

Working of MGNREGA

  • Through a bottom-up participatory approach, every year the GPs prepare the works to be executed in the next financial year.

  • Works the 155 permissible activities under the Scheme- revised periodically depending upon State requests.

  • In accordance with the NREGA Act, Central Employment Guarantee Council (CEGC) guide, evaluate and monitor the implementation of the program on the ground.

MGNREGA Objectives

  • Strengthening the livelihood resource base of the poor

  • Meet demand for wage employment on the ground

  • Close to 1.5 Cr works are taken up every year under MGNREGA.

  • In the last FY, strong push towards work completion led to the highest work completion of 62 Lakhs.

Chart of MGNREGA Objectives

Chart of MGNREGA Objectives

Chart of MGNREGA Objectives

Convergence of MGNREGS with Other Schemes.

  • A good example of convergence is houses under Pradhan Mantri Awas Yojana (PMAY) - 33 Lakhs houses were constructed in FY 2016 - 17 with Rs. 18000 from MGNREGS as unskilled wage labour

  • For convergence with Swachh Bharat Abhiyan, MGNREGA provides Rs. 12000 for construction of household toilets in every PMAY house.

Skilling MGNREGS Workers

  • Multiple assets to a household for augmentation of livelihood potential is a major thrust under MGNREGS.

  • Skilling the MGNREGS workers done through Barefoot Technician program with 5380 Bare Foot Technicians (BFT) trained so far in 19 States providing technical support at field.


  • Committee under the Chairmanship of Additional Secretary with representatives of relevant Central Ministries and five State Governments the issue of Alignment of MGNREGA Wages with Minimum Agricultural Wages.

  • The MGNREGA Wages notified under Section 6.1 of the MGNREGA Act on 1st December, 2009.

  • For the States with minimum wages higher than Rs. 100/-, those wages were taken as MGNREGA wages.

  • For States with minimum agricultural wages less than Rs. 100/- MGNREGA wages were notified as Rs. 100/-.

  • Since then, MGNREGA wages have been indexed to Consumer Price Index for Agricultural Labour.

  • The present divergence between MGNREGA wages and minimum wages for agricultural labour attributed to States not following a scientific and uniform system of indexation of wage rates while MGNREGA wages are increased based on changes in Consumer Price Index for Agricultural Labours.

- Published/Last Modified on: October 3, 2017

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