Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme

 What is MGNREGA?

  • The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is an employment guarantee act
  • It was introduced in 2005 through the National Rural Employment Guarantee Act,2005.

Objective:

  • The National mahatma gandhi scheme aims to enhance livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.

Implementation:

  • Ministry of Rural Development (MRD),Government of India in association with state governments monitors the implementation of the scheme.

Features of the act:

  • Demand driven scheme:Worker to be hired when he demands and not when the Government wants it.
  • Gram Panchayat is mandated to provide employment within 15 days of work application failing which worker is entitled to unemployment allowance
  • Payment of wages within 15 days of competition of work failing which worker is entitled to delay compensation of 0.05%/ day of wages earned.

Concerns with the scheme:

Income tax return filing is mandatory for a company and a firm. However, individuals, HUF, AOP, BOI are mandatorily required to file return of income if the income exceed basis exemption limit of Rs 2.5 lakhs. This limit is different for senior citizens and super senior citizens.

  • Insufficient budget allocation
  • Poor wages rate
  • Delay in wage payments
  • Fabrication of job cards:Payments to fictitious workers
  • Ineffective grievance redressal
  • Large number of incomplete work
  • Poor quality of assets created.

Measures to be taken:

  • Proper and timely allocation of funds
  • Ensuring minimum wages for workers
  • Effective monitoring of projects
  • Ensuring employment to rural households as per demand for work.
  • Proper job card verification
  • Ensuring efficient grievance redressal mechanism.

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