Mahatma Gandhi National Rural Employment Guarantee Act

1. MGNREGA
-DISHANT JOJIT JAMES
JR.MSC[AEX]

2. The National Rural Employment
Guarantee Act (NREGA)
“Act of the people, by the people, and for the people”

3. What Is it ?
Scheme Provides at least 100 days of work at not less
than Rs 60/day which varies by state.
36.7 Million rural Households have benefitted so far in
2012-13, while 49.8 million rural household benefitted in
2011-12
Implemented in 645 districts across the country

4. Introduction
The Mahatma Gandhi National Rural Employment Guarantee
Act (MGNREGA) is an Indian legislation enacted on 7th September
2005 and launched on Feb 2,2006 from Anantapur in Andhra Pradesh
,that aims to guarantee the 'right to work' and ensure 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.

5. Objectives of NREGA
• Augmenting wage employment.
• Strengthening natural resource management through works that
address causes of chronic poverty like drought, deforestation and soil
erosion and so encourage sustainable development.
• Strengthening grassroots processes of democracy.
• Infusing transparency and accountability in governance.
• Strengthening decentralization and deepening processes of democracy
by giving a pivotal role to the Panchayati Raj Institutions in planning,
monitoring and implementation.

6. Wage Employment Programs
1980’s
• National Rural Employment
Programme (NREP) launched to use
unemployed and underemployed
workers to build community assets
• Rural Landless Employment Guarantee
(RLEG) launched to provide 100 days
of guaranteed employment to 1
member from each rural, landless
household
• Jawahar Rozgar Yojana launched,
combining NREP and RLEG
1990’s
• Employment Assurance Scheme (EAS)
launched to provide employment
during the lean agricultural season
• Jawahar Gram Samridhi Yojana (JGSY)
launched; dedicated to development of
demand driven rural Infrastructure
2000’s
• Sampoorna Gramin Rozgar Yojana
(SGRY)launched, merging EAS and
JGSY
• Food for Work Programme (NFFWP)
launched to generate additional
supplementary wage employment and
create assets
• National Rural Employment
Guarantee Scheme (NREGS)
launched to provide 100 days of
guaranteed employment to one
member from each rural household
and create community assets

7. SALIENT FEATURES OF MGNREGA
• i) Adult members of a rural household willing to participate, have to apply for registration, either orally or in written, to
Gram Panchayat; they will be provided with a Job Card within 15 days after verification, with proper photographs of the
members willing, free of cost!
• ii) Employment will be given within 15 days of application for work; if not ,daily unemployment allowance as per the Act,
has to be paid; liability of payment of unemployment allowance is of the State.
• iii) Work should ordinarily be provided within 5 km radius of the village. In case work is provided beyond 5 km, extra
wages of 10% are payable to meet additional transportation and living expenses.
• iv) Wages are to be paid according to the Minimum Wages Act 1948 for agricultural laborers in the State, unless the
Centre notifies a wage rate which will not be less than Rs. 60/ per day. Equal wages will be provided to both men and
women.
• v) Disbursement of wages has to be done on weekly basis and not beyond a fortnight in any case.

8. • vi) At least one-third beneficiaries shall be women who have registered and requested work under the
scheme.
• vii) Work site facilities such as crèche, drinking water and shade have to be provided.
• viii) Permissible works predominantly include water and soil conservation, afforestation and land development
works. Contractors and machinery are not allowed.
• ix) A 60:40 wage and material ratio has to be maintained.
• x) The Central Government bears the 100 percent wage cost of unskilled manual labor and 75 percent of the
material cost including the wages of skilled and semi skilled workers

9. Adult members of rural households submit their name, age and address with photo to the Gram Panchayat.
The Gram panchayat registers households after making enquiry and issues a job card. The job card contains the
details of adult member enrolled and his /her photo.
Registered person can submit an application for work in writing (for at least fourteen days of continuous work)
either to panchayat or to Programme Officer.
The panchayat/programme officer will accept the valid application and issue dated receipt of application;
Letter providing work will be sent to the applicant and also displayed at panchayat office.
Registration will be made for five years and may be renewed from time to time.
EMPLOYMENT CARD

10. Phase I NREGA(200)
(Backward Districts ranked on
basis of agricultural wages,
output per agricultural worker
and SCT/ST population of the
district)
Phase II NREGA(130)
Phase III NREGA(266)
NREGA COVERAGE (1st Nationwide employment scheme )

11. Implementation Status
 The scheme was introduced in 200 districts during financial year 2006-
07 and 130 districts during the financial year 2007-08.
 In April 2008 NREGA expanded to entire rural area of the country
covering 34 States and Union Territories, 614 Districts, 6,096 blocks and
2.65 lakh Gram Panchayats.
 The scheme covered 644 districts , 6,576 blocks and 7.78 lakh villages in
the financial year 2013-14.

13. Fund & Accounts Management
Fund Allocation Note
Wage
Gram
Panchayat
MCC
Wage Seekers
Material
Suppliers
Payment for material delivered
Work Startup Order
Fund Status Report
Fund receipt, transfer
Advances
Claims
Savings Account Mgt
Maint of ledgers
Period financial reports

14. Activities…
Sl.No. Activity Time Schedule
1 Closing of Muster Roll
6th day after start of work
2 Bringing of muster roll & measurement book
8th day
3 1. Entry of muster rolls in MIS
2. Generation of pay order 9th & 10th day
4 1. Submission of pay order at block post office/bank
2. Generation of wage slip
3. Transfer of pay order at village post office/bank 11th & 12th day
5 Deposit of wages in the a/c of wage earners
(electronic fund transfer) 13th day

15. Management Information System (MIS)
A web enabled MIS www.nrega.nic.in has been developed. This makes data transparent
and available in the public domain to be equally accessed by all.
Benefits availed through NREGA MIS:
E-Governance for Masses:
• Computerisation of all NREGA activities
• All information available for public access
• Accuracy ensured in payment of wages to workers
• Lodging of complaints through Grievance Redressal System
Assists Gram Panchayats in NREGA Implementation :
 Tracking of 100 days of employment to a household
 Generates documents as per NREGA guidelines
 Tracking of funds from the Ministry to the worker

17. i .Water Conservation and water harvesting including contour trenches, contour bunds, boulder
checks, gabion structures, underground dykes, earthen dams, stop dams and springshed
development;
ii. Drought Proofing including plantation and afforestation;
iii. Irrigation canals including micro and minor irrigation works;
iv. Provision of irrigation facility, dug out farm pond, horticulture, plantation, farm bunding
and land development;
v. Renovation of traditional water bodies including desilting of tanks;
vi. Land Development;
vii. Flood control and protection works including drainage in water logged areas, deepening
and repairing of flood channels, chaur renovation, construction of storm water drains for
coastal protection;
viii. Rural connectivity to provide all weather access, including culverts and roads within a
village, wherever necessary;

18. ix. Construction of Bharat Nirman Rajiv Gandhi Sewa Kendra as Knowledge Resource Centre
at the Block level and as Gram Panchayat Bhawan at the Gram Panchayat level;
x. Agriculture related works, such as, NADEP composting, vermi-composting, liquid
biomanures;
xi. Livestock related works, such as, poultry shelter, goat shelter, construction of pucca floor,
urine tank and fodder trough for cattle, azolla as cattle-feed supplement;
xii. Fisheries related works, such as, fisheries in seasonal water bodies on public land;
xiii. Works in coastal areas, such as, fish drying yards, belt vegetation;
xiv. Rural drinking water related works, such as, soak pits, recharge pits;
xv. Rural sanitation related works, such as, individual household latrines, school toilet units,
anganwadi toilets, solid and liquid waste management;
xv(a) Construction of anganwadi centres.
xv(b) Construction of play fields.
xvi. Any other work which may be notified by the Central Government in consultation with the
State Government.

19. Nature of MGNREGA works are such that they
augment productivity
Community Lands
 Water conservation
 Water harvesting
 Irrigation
 Drought proofing
 Plantation &
Afforestation
 Renovation of water bodies
 Desilting of tanks & canals
 Flood control measures
 Rural connectivity
Private Lands
of SC/ST/IAY/Land Reform
beneficiaries/BPL/small and
marginal farmers
Small & marginal farmers account for
80% of land- holdings & operate 40%
of cultivated land
 Land Development
 Irrigation facilities
 Horticulture Plantation

20. 1%
8%
6%
9%
16%
13%
3%
16%
27%
Flood Control and Protection
Water Conservation and Water
Harvesting
Provision of Irrigation facility to
Land Owned by SC/ST/BPL/ IAY
Beneficiaries
Rural Connectivity
Land Development
Others
Drought Proofing (Afforestation
& Plantation)
Micro Irrigation Works
Renovation of Traditional Water
bodies
Highest Priority to Water Conservation

21. Flood control and
protection works
including drainage in
water logged areas
TYPES OF WORK UNDER THE SCHEME:

22. Plantation Works

23. Water Conservation

25. FY 2014-2015 FY 2013-2014 FY 2012-2013 FY 2011-2012
645 644 636 635
6601 6576 6568 6378
247643 247643 247643 247643
778134 778134 778134 778133
13.1 14 13.2 12.6
29 31.1 29.3 27.8
84787 34387 26190 25389
73.2 79.3 79.1 53.2
76.1 102.7 104.6 80.8
Wages(Rs. In Cr.) 8063.6 23289.4 27152.8 24306.2
Material and skilled Wages(Rs. In Cr.) 2298.7 8261.9 10430 10650.5
GP Level 20.3 226 307.6 301.8
Block Level 267.1 1335 1330.1 1191.7
District Level 106.7 594.5 482 514.4
State Level 59.32 200.961 32.936 108.055
Total Adm Expenditure 453.5 2356.4 2152.7 2116
Total Exp(Rs. in Cr.) 10815.7 33907.7 39735.4 37072.7
Labour Vs Material(%) 77.8 73.8 72.2 69.5
Admin Exp(%) 4.2 6.9 5.4 5.7
Households 223.1 484.9 498.9 506.4
Individuals 327.6 746.5 797.3 820
Men 148.3 387.7 422.1 446.6
Women 179.3 358.9 375.3 373.3
SCs 73.7 169.6 181.7 185
STs 60.2 131.7 142.9 147.4
Persons with Disability 2.6 4.9 4.6 4
Total as per LB 227 258.6 278.7 199.6
Persondays Generated so far 56.7 220.7 230.5 218.8
% of Total LB 25 85.4 82.7 109.6
% as per Proportionate LB 61
SC persondays 12.5 49.8 51.2 48.5
ST persondays 10 38.2 41 40.9
133.2 132.6 121.4 114.5
25.4 45.5 46.2 43.2
2.1 46.5 51.7 41.7
33.9 43.1 63 57.8
49.7 30 0.9 0% of payments Disbursed through EFMS
Performance since inception: Persondays Generated (In Cr.): 1717.75 Total expenditure(Rs.In Cr.): 250744.35
Today 6809902 workers are expected on 275707 worksites (as per e-MustRoll)
Mahatma Gandhi NREGA at a Glance
Wage Employment Provided(in lakhs)
Person days(In Cr)
Average Wage rate per day per person
Average days of employment provided per Household
Total No of HHs completed 100 Days of Wage Employment(In Lakhs)
% payments gererated within 15 days
Total No. of Workers in Job Card(In Cr)
Number of GPs with NIL exp
Number of Ongoing Works(In Lakhs)
Total No. of Works Takenup (New+Spill Over)(In lakhs)
Total Exp(In Cr)
Adm Exp:
Total no of Districts
Total No. of Blocks
Total No. of GPs
Total no of Villages
Total No. of HH Registered(In Cr)

26. •OUTCOME 
(Achievements of
NREGA)

27. 1. Maximizing Work Opportunities: Livelihood Security
Under NREGA , in FY 2012-13, 50 million households were
provided employment and 230.5 crore person days were
generated.
In FY 2013-14, 48 million households were provided work and
220.7 crore person days were generated.

29. 2.Inclusive Growth:
NREGA has provided employment particularly for marginalized groups. The participation
percentages were 55% (SC/ST) in 2008-09 and 53% (SC/ST) upto July, 2009. Women
workforce participation has also surpassed the statutory minimum requirement of 33 per
cent. In FY 08-09, women participation was 48%, which increased to 52% in 2009-10
(upto July, 09).
Women participation during the scheme execution in Kerala has been very high.
(Kudumbashree movement).Out of total employment generated in the State, the
women beneficiaries were included 65.8 percent in 2006-07 increased to 85.01
percent in 2008-09, 88.19 percent in 2009-10 and 90.36 percent 2010-11.
Empowerment of rural women has emerged as an unintended consequence
of NREGS.
Women have benefited more as workers than as a community. Women as
individuals have gained because of their ability to earn independently, made
possible due to the paid employment opportunity under NREGS.

30. Women participation in NREGA in major
states during 2010-11
100
90
80
70
60
50
40
30
20
10
0

31. 3.Augmenting household income, savings and
investment:
Post-NREGA, there has been a revision of minimum wages
across the country ; in the last three years, average daily
wage rate has increased from Rs. 114 in 2011-12 to Rs 133
in 2014-15.

32. 236
155

33. 4.Financial Inclusion:
• Over 7.33 crore NREGA bank and post office accounts have been opened so far.
These accounts have helped bring the rural poor under the organized banking
sector.
• This will not only infuse integrity in wage payment, but also bring the most
vulnerable people in rural India into formal banking and credit system.
5.Regenerating Natural Resources:
• Under NREGA water and soil conservation, plantation and afforestation has
been given priority.
• Works relating to drought proofing and flood protection are aimed to provide
resistance to climate shocks and natural disasters.

34. Funds
NREGA 2014 Budget Allocation -34,000 Cr.
Central Govt. provides only 75% of the material costs,
promoting labour intensive works in NREGA

35. State and Local Government
State Rural Employment Guarantee Scheme (REGS)
• 25 per cent of the cost of material and wages for semi-
skilled/ skilled workers
• Unemployment allowance if the state is unable to
provide employment within 15 days
• Administrative expenses of the State Employment
Guarantee Council

36. Component of expenditure
 Material cost
 Expenditure on wage
 Administrative cost
NREGA’14-34000 cr.
Material
Wages
52%
14%
17%
14%
3%
Water
conservati
on 52%
Land
developm
ent
Rural
connectivi
ty
provision
of
irrigation

37. Funding
* 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 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.
State Employment Guarantee Fund (SEGF)
The Ministry has stressed on the formation of State Employment Guarantee Funds (SEGF). Eighteen States have constituted SEGF and have
dedicated account for Mahatma Gandhi NREGA.
In remaining States where SEGF has not been constituted, each District has a dedicated account for Mahatma Gandhi NREGA funds. Proposals are
submitted based on clearly delineated guidelines so that funds may be distributed efficiently at each level, and adequate funds may be available to
respond to demand. Under Mahatma Gandhi NREGA, fund releases are based on an appraisal of both financial and physical indicators of outcomes.

39. 4/3/2017 39
 If any person employed under the scheme is or child accompanying any person
injured ; he/she shall be entitled to free of charge medical treatment
 During the period of hospitalization of injured worker
 Accommodation, treatment and medicines
 Half of the wage per day to be paid to injured person
 If a person employed under a scheme
 dies or
 becomes permanently disabled by the accident at site
The legal heirs of the deceased or the disabled shall be paid an ex gratia payment at the rate of
Rs.25000 By the Central government.

40. 40
Details of Institutions related to NREGA
Indian Institute of
Women’s Studies
Centre for Budget
& Governance
Accountability
IIM Bangalore Institute of Human
Development
Centre for
Development
Alternatives
Objective Analyse women
access to NREGA,
assess State
Schemes, document
labour market
conditions, assist
design gender
sensitive works.
Monitor
implementation of
NREGA, identify
implementation
challenges faced by
State Gov, Local
admn and PRIs,
increase awareness
of NREGA,
Identify Practical
issues of
implementation,
management and
coordination through
quick surveys at the
worksites, village,
conformity with Act &
Guidelines
Process
documentation;
assess impact of
NREGA on wages,
employment, durable
assets;policy,
recommendations;
sensitise
stakeholders
Suggestive corrective
measures, assess
strengths and
weaknesses in
Schemes
Coverage 2 distts of
Orissa,Maharashtra,
TN, WB
1 distt. In AP, 2 each
in Chattisgarh,
Jharkhand, MP
1 in AP and 1 in
Karnataka
6 districts of Bihar 6 districts of Gujarat

41. Amendments in NREGA
 (7th Jan,2010)
NREGA was renamed to MGNREGA
 (14th May,2010)
Old Logo New Logo

42. Advantage from MGNREGA
Environmental
Benefits and
Vulnerability
Reduction
Every 5th rural
Indian
household
benefits from
MGNREGA
Agricultural
Sustainability
Women
empowerment

43. NREGS: Success Story of Hardoi(UP)
 Name of Work – Renovation of Kakhraiya Pond ,Year – 2006-07
 Cost of the work – Rs.1.126 lakh
 Man days Created- 1300
 Benefit of the Project – It is useful for recharging the ground
water, for drinking water for animals, for irrigation purpose as
well as it has provided the employment to the local labourers.

44. LIMITATIONS 
 Registration problems in terms of caste discrimination.
 Uniform distribution of job cards is a time consuming process and leads to dissatisfaction.
 Only 19% of the 8.5 lakh differently able people registered for the scheme have got work under
NREGA.
 Illegal charges levied on people for application forms.
 Non-issuance of receipts to applicants.
 Unavailability of necessary facilities at the work places.
 Improper maintenance of attendance of the workers.
 Payments of wages delayed.
 Measurement of work done by the workers a major problem.
 Inadequate number of officials for the scheme.
 Delay in appointments of officials in the villages.
 Another issue is that of fake muster rolls & bills being generated

45. In Bundelkhand, M.P, the scheme is plagued by
corruption and delayed payment of wages.
In the last three years, the State government has spent
over 1.1 lakh crores on the scheme. However, results
remain unsatisfactory.
The Union government recently increased the number of
job days from 100 to 200, but people here are not
celebrating and would prefer migrating to Delhi.
“We have to pay bribes, face intimidation and still wages
are never paid on time. Private employers pay less, but
at least we get paid at the end of the day”, says Bootha
Ahirwar, a farmer from Majhora village.
Empty document: Gurba
Ahirwar of Akona village
in Madhya Pradesh
showing his NREGA job
card, with no entries
made in it.
.

46. Way Ahead
Monitor the programme effectively
Village level resource planning and development
Other development programs like Bharat Nirman should sync with NREGA
From quantitative employment generation to sustainable development through asset building
Representatives
Proper election and training
More power to Panchayat Raj

54. References
[1]. UNDERSTANDING NREGA: A SIMPLE THEORY AND SOME FACTS, Diganta Mukherjee, Uday Bhanu Sinha; Working
Paper No. 196; Centre for Development Economics Department of Economics, Delhi School of Economics
[2]. An Assessment of the Performance of The National Rural Employment Guarantee Programme in Terms of its
Potential for Creation of Natural Wealth in India’s Villages, Centre for Science and Environment Report Prepared for the
Ministry of Rural Development Government of India, September 2008
[3] Internet