Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

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  • Enhance livelihood security by providing 100 days guaranteed employment to every rural household

  • “Stellar Example of Rural Employment” by World Bank

  • It was earlier known as the National Rural Employment Guarantee Act

  • It was passed on 7th September 2005

  • Proposed by the P.V Narasimha Rao Government in 1991 for employment and development

  • It aims to provide 100 days wage employment

  • It aims to create durable assets

  • Employment to be provided within 5 km of employees residence and within 15 days

  • It is to be implemented by Gram Panchayat

  • It help in protecting environment and fostering equity

  • MGNREGA Strengthens decentralization in Indian Democracy

Salient Features of the Act

  • Right based framework

  • Time bound guarantee

  • Guaranteed Employment

  • Labour intensive work

  • Decentralized planning

  • Work Site facilities

  • Women Empowerment

  • Transparency and Accountability

  • Funding

Changes in MGNREGA Structures

  • (2009 - 10) - 90% wages for males and 26% wages for females higher from market

  • (2011 - 12) - Wages were lower for both than market

  • (2017 - 18) - Private market wages higher than MGNREGA wages

  • Due to Covid-19, Workforce has migrated to rural areas from cities

  • Therefore, to tackle Migrant crises the Finance Minister of Government of India on 26th March 2020 announced that MGNREGA workers will get Rs 2000

  • Rs31000 crore funds for testing, screening and providing better Health care facilities

Underlying Challenges

  • Inadequate Financing

  • Delay in payment of wages

  • Ineffective role of Panchayati Raj institutions

  • Large number of incomplete works

  • Fabrication of Job Cards

Way Forward

Short Term Measures

  • State Government should immediately start work in villages

  • Local Bodies must be Active

  • Adequate Facilities must be provided at work site

  • Speed up Payment in Cash

Long Term Measures

  • Strengthening of the authority of Gram Panchayat to sanction work and payment

  • Coordinating with other schemes

  • creating awareness in Rural areas about Government Policies