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MGNREGA
SUBMITTED TO-Dr. DIPIKA UPADHYAY
SUBMITTEDT BY-ANAND PRATAP SINGH
BBA LLB (second semester)

History of MGNREGA
• MNREGA was set up on Feb 2, 2006
from district Anantpura in the state
of Andhra Pradesh
• In country like India, where human
workforce is the major resource in
development of economy,

mechanism to systematically utilize this
force at grass root development has
been overlooked for
many years since independence. The
enactment of Mahatma Gandhi
National Rural Employment
Guarantee Act (MNREGA) in 2005 is
indeed a significant development in -.

In this regard. In other
words it symbolizes the
achievement of a very long civil
society and people’s movement
towards
ensuring right to food through
ensuring right to work.

The Indian Parliament passed the
National Rural Employment Guarantee
Act (MNREGA) in
August 2005, which provides for a
minimum of 100 days of guaranteed
employment to every rural
household. The Act came into force in
200 of the country’s poorest districts

and has later been
expanded to another 130 districts.
Presently, it has been extended to
cover the whole country.
MNREGA has placed a judicially
enforceable obligation on the state
to provide unskilled, manual

work within 15 days of a person
making an application, within a
radius of 5 km from the
applicant’s residence. Failing
this, the state government is to
provide an unemployment
allowance.
Under the provisions of the act

workers are entitled to a statutory
minimum wage for their labour,
to be paid within seven days after
the work is done. Men and women
are to be paid equal wages.
All these provisions make this a
“People’s Act” in several sense.

1-The Act was prepared through a
wide range of consultation with
people’s organizations. The Act
addresses itself chiefly to working
people and their fundamental right
to life with dignity.

The Act also empowers ordinary
people to
play an active role in the
implementation of employment
guarantee schemes through
Gram Sabhas (participatory &
representative micro level
administrative unit in three tier
Panchayat System),

social audits, participatory
planning and other means. More
than any other
law, MNREGA is an Act of the
people, by the people and for the
people. This Act is an important
step towards the realization of the
right to work.

The popular job scheme of
MGNREGA defines double goals of
non-urban growth and career. The
MGNREGA scheme states that
performs must be focused towards
a set of particular non-urban
growth actions such as: water
preservation and growing,

The primary objective of the Act is
augmenting wage employment for the
poorest of the poor while the
secondary objective is to strengthen
natural resource management through
works that address causes of chronic
poverty, like drought, and thus
encourage sustainable development.

The law and the Constitution of India
• the Act aims to follow the Directive
Principles of State Policy enunciated
in Part IV of the Constitution of India.
The law guarantees the 'right to
work which is consistent with Article
41 that directs the State to secure to
all citizens the right to work.

Further conforming to the Article 23 of
the Universal Declaration of Human
Rights that defines the right to work as
a basic human right, this law
guarantees the right to work to the
people of India and hence is termed as
a "People’s Act"

The statute also seeks to protect the
environment through rural
works which is consistent with Article
48A that directs the State to protect
the environment.
In accordance with the Article 21 of
the Constitution of India that
guarantees the right to life with dignity
to every citizen of India

this act imparts dignity to the rural
people through an assurance of
livelihood security. The Fundamental
Right enshrined in Article 16 of the
Constitution of India guarantees
equality of opportunity in matters of
public employment and prevents the
State from discriminating against
anyone in matters of employment on

the grounds only of
religion, race, caste, sex, descent,
place of birth, place of residence
or any of them. The statute
mandates that at least one-third of
the beneficiaries shall be women
(Section 4.6.9 of the NREGA
Operational Guidelines)

Moreover women representation in
the employment under the Act has
been reported as 48 per cent from
2009–12, showing that the law has
been used as an instrument to reduce
gender inequality and foster women
empowerment. Moreover the share
ofScheduled Castes and Scheduled
Tribes has been around 30 per cent,

showing that the statute has empowered
weaker sections ensuring social justice. In
doing so, the legislation also follows
Article 46 that requires the State to
promote the interests of and work for the
economic uplift of the scheduled castes
and scheduled tribes and protect them
from discrimination and exploitation

Article 40 mandates the State to organise village
panchyat and endow them with such powers and
authority as may be necessary to enable them to
function as units of self-government.. Also the
process of decentralization initiated by 73rd
Amendment to the Constitution of India that
granted a constitutional status to the
panchayat is further reinforced by the Mahatma
Gandhi NREGA that endowed these rural self-
government institutions with authority to
implement the law

Benefit of MGNREGA
• From financial year 2006-07 up to
fy2012-13 over Rs.1,29,000crore has
been spent on wages .this is almost 70%
of total expenditure .the scheme notified
wages have increased across all states
since 2006 .the average wage earned per
beneficiary has risen from Rs.65 per
person day in 2006 to Rs.150 2014

Importance of MGNREGAS
• The MGNREGA has given rise to the
largest employment programme in
human history and is unlike any other
wage employment programme in its
scale, architecture and thrust. Its bottom-
up, peoplecentred, demand-driven, self-
selecting, rights-based design is distinct
and unprecedented

The MGNREGA provides a legal guarantee
for wage employment
It is a demand-driven programme where
provision of work is triggered by the
demand for work by wage-seekers
There are legal provisions for allowances and compensation both in cases of failure to provide work on demand and delays in payment of wages for work undertaken
There are legal provisions for allowances
and compensation both in cases of failure to
provide work on demand and delays in
payment of wages for work undertaken

Plans and decisions regarding the nature and
choice of works to be undertaken, the order in
which each work is to be triggered, site selection
etc. are all to be made in open assembly of gram
sbha and rectify by the GP.
Unlike the earlier wage employment programmes
that were allocation-based, MGNREGA is demand
driven and resource transfer from Centre to States is
based on demand of employment of each state
This provide an additional incentive for state to
leverage the act to meet the employment need of
the poor

An Annual Report prepared by the Central
Employment Guarantee Council (CEGC), on
the outcomes of MGNREGA is required to be
presented annually by the Central
Government to Parliament. Likewise, the
annual reports prepared by State
Employment Guarantee Councils (SEGC) are
to be presented to State Legislatures by the
State Governments, facilitating oversight by
elected representatives.

Social audit is a new feature that is an
integral part of MGNREGA. Potentially, this
creates unprecedented accountability of
performance, especially towards immediate
stakeholder
MGNREGA also marks a break from
the relief programmes of the past towards an
integrated natural resource management and
livelihoods generation perspective

CRITISIZM
Despite its progress in improved
implementation and governance, the
NREGA still has to deal with the
corruption and other improprieties that
have come to be associated with any
Govt. program in India. The CAG
review said in as many as 70% of the
villages checked

there were no proper records
available on number of households
who demanded jobs and the actual
number of people who benefited
from the job guarantee scheme.
Hurdles to its implementation apart,
the main criticism, however, is of the
idea itself.

A focus on channeling the work to
beneficial and durable infrastructure
projects would create a great
difference to the lives of the poor in
the long term, rather than a focus
on just distributing the money.
Otherwise, it would just create a
long term

dependency among the poor on the
largesse of the Govt. If the works are
only of marginal importance, and
involve mainly the equivalent of
digging and filling the ground, it
would be such a huge waste of
human potential and resources.

• And now the middleman between the
Indian government and the worker ,most
of the worker are not able to receive
there actual remuneration which must
receive by them
the name of dead persons are also
there in the data of wage distribution
,the money belong to that dead person is
one of the highest earning medium for
the gram pradhan ,block officer etc .

As the main focus of the scheme is to
provide local employment, it may be
discouraging rural workers from going
to better places where they can
improve their skills. This could well
delay the process of achieving
economic transformation.

Mahatma Gandhi NREGA at a glance
• MGNREGA are enforced in total—
778134 villages,in year 2013-2014
• Total expenditure of Indian
government under this scheme in
financial year 2013-2014 was
37547.1crores

Rural Development Ministry spends
about 40,000crors rupees each year
on the job guarantee scheme

% payment generated within 15 days
58.5% in year 2013-2014
63% in year 2012-2013
4.5%payment generated within 15
days has decrease

• Total job card issued
• Fy2011-2012 2012-2013
12.39Crore 12.54Crore
In year 2006-07 the total number of
job card issued only 3.78crore
and in year 2008-09 the total number
of job card issued 10.1crore

• Total 25% of SCs people were working
under this scheme in financial year 2006-
2007
• Total 30% of SCs people were working
under this scheme in financial year 2010-
2011
• But the total number of SCs people who
are working under MGNREGA decrease
and in financial year 2012-2013 it was
only 22%

And now about women in MGNREGA
% of women in total number of workers is
increasing in year 2006-07 % of women
was 40% and in year 2011-12 it was 48%
and in year 2012-13 it increase again and
currently the total number of women
worker under this scheme is 53% i.e
74.74crore

Total worker
• And now total number of worker under the
MGNREGA
• FY2006-07 = 90.5crore
• FY2007-08 = 143.59crore
• FY2008-09 = 216.32crore
• FY2009-10 = 283.59crore
• FY2010-11 = 257.15crore

Total fund
• 12073.55crore in FY 2006-2007
• 19305.81crore in FY 2007-2008
• 37397.06crore in FY 2008-2009
• 49579.19crore in FY 2009-2010
• 54172.14crore in FY 2010-2011
• 48832.49crore in FY 2011-2012
• 39620.16crore in FY 2012-2013

Expenditure ,%against available fund
• 2006-07 = 8823.35 73%
• 2007-08 = 15856.89 82%
• 2008-09 = 27250.10 73%
• 2009-10 = 37905.23 76%
• 2010-11 = 39377.27 73%
• 2011-12 = 38034.70 78 %
• 2012-13 = 25074.69 63%

The Central Government bears the costs on the following
items:
The entire cost of wages of unskilled manual
workers.
75% of the cost of material, wages of skilled and
semi-skilled workers.
Administrative expenses as may be determined by
the Central Government, which will include,inter alia
the salary and the allowances of the programme officer and
his s supporting staff and work site facilities
• Expenses of the Central Employment Guarantee
Council.

The State Government bears the costs on
the following items
25% of the cost of material, wages of skilled
and semi-skilled workers
Unemployment allowance payable in case the
State Government cannot provide wage
employment on time
Administrative expenses of the State
Employment Guarantee Council.

To ensure transparency in wage payments
and prevent misappropriations, the
Government of India mandated that all
MGNREGA wage payments should be
made through banks/post office account
opened in the name of the worker. As a result,
nearly 8.6 crore bank/post office accounts (as
per MIS data) of rural people have been
opened under MGNREGA

And around 80 per cent of MGNREGA
payments are made through this
route. There are 4.08crore accounts in
banks and 4.53crore in Post Offices(as
per MIS data). The opening of accounts
has brought the poor into the organised
sector and in some cases provided them
with better access to credit, an
unprecedented financial inclusion
initiative

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