Mahatma Gandhi National Rural Employment Guarantee Act

Under the leadership of then-Prime Minister Dr Manmohan Singh, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was passed on August 23, 2005. It took effect on February 2, 2006. It is a labour security law that was enacted with the sole intention of ensuring at least one adult member of a rural home a legal guarantee of 100 days of wage employment. The act requires that the adult member be willing to work for the mandated minimum wage doing unskilled manual labour.

Initially, it was called the National Rural Employment Guarantee Act 2005, later renamed in 2009 to the Mahatma Gandhi National Rural Employment Guarantee Act 2005. MGNREGA was introduced in only 200 districts in its first phase, but it now spans 644 districts with significant rural populations across the country. Exceptions to this rule are the districts with a 100% urban population. Since the involvement of contractors is prohibited, the act is implemented primarily by the gram panchayats. 

Salient Features

• The Mahatma Gandhi National Rural Employment Guarantee Act is one of the world’s most extensive work and social security programmes ever to come into existence.

• The Act provides a legal right to the employment of at least one adult from a rural household who volunteers to do unskilled labour work

• The sole purpose of the act is to provide guaranteed wage employment to rural households for at least 100 days in a financial year

• The minimum wages are paid to boost the purchasing power of the rural population

• Employment is provided within a radius of five kilometres of the worker’s residence. If the distance is more than five kilometres, then appropriate extra wages are paid

• The work under the act is offered within 15 days of registration, or else the candidates will be eligible for a government unemployment benefit

• It addresses the chronic poverty issue by guaranteeing the “right to work”.

• The act aids in bridging the gap between the rich and poor to attain sustainable development of the country

• It also gives work opportunities to differently-abled people. For example, Tamil Nadu has become the first state to employ the differently-abled under the Mahatma Gandhi National Rural Employment Guarantee Act. 

• Apart from providing financial security to the rural population, the Mahatma Gandhi National Rural Employment Guarantee Act also boosts the creation of infrastructural assets, environmental protection and reduces rural-to-urban migration. 

• It mandates one-third of the beneficiaries to be women and promotes equal wages for women workers, thus promoting women’s empowerment.

Examination and Assessment of MGNREGA

Section 17 of the MGNREGA has mandated a social audit to examine and assess the work executed under the MGNREGA to ensure transparency and accountability. It includes all the details of the work given, the number of employed labourers, and the materials used. The central government provides funds for conducting social audits, whereas the state government keeps follow-ups on the audits. Gram sabhas are given the authority to conduct social audits. According to the act, people should be informed of the date and time of the social audit by going door to door, posting notices on notice boards of gram panchayat offices, or posting posters in public places. 

Funding Pattern 

The centre and state governments both share the finances of the Mahatma Gandhi National Rural Employment Guarantee Act 2005. The funding is divided into three categories: wages for skilled labour, semi-skilled and unskilled labour. Most of the expenses are borne by the central government, including 6% of the administrative costs, 75% of the cost of semi-skilled and skilled labour, 75% of the cost of materials, and 100% of the cost of unskilled labour. The wage rates for the workers are also determined by the central government and can range from Rs 190-300 per day, depending on the state.

Permissible and Non -Permissible Work Under MGNREGA

Schedule 1 of the Mahatma Gandhi National Rural Employment Guarantee Act enlists all the permissible work. It is divided into categories such as irrigation and flood management, watershed, agriculture and livestock, sanitation, rural drinking water, fisheries, coastal area works, etc. 

The non-permissible work includes non-tangible, repetitive, non-quantifiable work such as removing weeds, pebbles, watering, etc. However, removing weeds and watering for horticulture and forestation can be considered if they are a part of a consolidated project for no longer than 2-3 years.

As per the act, all these workplaces must have child care centres, resting facilities, potable drinking water, and first aid.

Conclusion

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005 is one of the critical chapters to study for the Public Service Commission (PSC) exams. These notes cover all the critical aspects of MGNREGA, such as its salient features, funding pattern, the kind of work permitted and not, and the social audits that help the government keep track of all the related activities MGNREGA.