MGNREGA
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was approved
by the parliament in its 2005 monsoon season on September 5, 2005. It was implemented and
came into force on February 2, 2006. It was the first act of its kind in the world wherein an
economic safety net is provided to around 2/3rd of the population through a right to work. The
MGNREGA act has laudable objectives of providing a work-guarantee to the poor rural
households on one hand and quality asset creation, strengthening of rural resource base, ensuring
social inclusion as well as strengthening of Panchayati Raj institutions on the other.
Objectives of MGNREGA
The primary objective of the act is to provide a minimum level of household security to the rural
households by providing on demand right to work i.e. at least 100 days of unskilled labour.
The other objectives of the act includes creation of productive assets both of prescribed
quality and durability through the provided wage employment, strengthening the
livelihood resource base of the rural poor, a proactive ensuring of social inclusion of women,
SCs and STs and strengthening of the Panchayati Raj Institutions (PRIs).
The auxiliary objective of the act as strengthening natural resource management (NRM)
through works that address causes of chronic poverty like drought, deforestation and soil erosion
to ensure sustainable development. Moreover, strengthening of grass root processes of
democracy and infusion of transparency and accountability in governance has been measured as
process outcomes.
Features of MGNREGA
Some of the salient features of MNREGA:
1. Unlike its predecessors, which had their beginnings in executive orders MNREGA is an act of
the parliament and thus has both legal superiority as well as constitutional approval.
2. It is irrevocable and can be dismissed only by another act of parliament.
3. It is not only a work-based employment programme but also integrates the agenda of
providing minimum livelihood security to rural households and other development objectives.
Other key features are:
1. At least 100 days of employment at a minimum wage thus ensuring a minimum livelihood
security for the poor rural households ensuring them a life of dignity.
2. A demand-driven employment strategy allowing for the self-selection of the participants.
3. Unemployment expenses to the demander in case of inability of the state agency to provide for
suitable employment, thus helping keep the government officials on their toes for providing
gainful employment.
4. Providing fund for MGNREGA is a legal obligation and not subject to budgetary allocations
thus ensuring that livelihood of poor is not contingent upon the fiscal allocations.
5. 60% of the project cost to be spent on wages of the unskilled labour and 40% on wages of
semi-skilled labour, skilled labour and material costs.
6. Central funding for 100% of the wage costs of the unskilled labour and 75% of wages of semi-
skilled labour, skilled labour and material costs. State to provide for the unemployment wages.
7. A non-lapsable corpus of funds which can be carried over during fiscal years unlike budgetary
allocations.
8. An emphasis on the works of water-conservation and harvesting which is an important
concern in rural areas.
9. A decentralized implementation mechanism through PRIs.
10. Social auditing to enforce transparency and accountability.
