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National Rural Employment Guarantee Act (NREGA), Complete Details

National Rural Employment Guarantee Act (NREGA): NREGA guarantees 100 days of wage employment annually to rural households, empowering them economically and creating durable assets for rural development.
authorImageParul Rishi8 May, 2024
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National Rural Employment Guarantee Act (NREGA)

National Rural Employment Guarantee Act (NREGA): The National Rural Employment Guarantee Act (NREGA), enacted in 2005, is a social security and labor law aimed at providing livelihood security in rural areas of India. This article looks into the various aspects of NREGA, including its objectives, features, implementation, impact, challenges, and future prospects.

National Rural Employment Guarantee Act (NREGA) Background

Historical Context Leading to the Enactment of NREGA:

  • Before NREGA, rural India faced persistent poverty, unemployment, and agrarian distress, increased by factors like droughts, floods, and land degradation.
  • Previous government schemes were inadequate in addressing rural livelihood challenges, leading to a demand for a comprehensive rural employment guarantee.

Overview of Socio-economic Conditions in Rural India Prior to NREGA:

  • Rural areas suffered from widespread poverty, lack of livelihood opportunities, and inadequate infrastructure, leading to migration, exploitation, and social exclusion.
  • Unemployment, underemployment, and seasonal agricultural work characterized the rural labor market, resulting in income insecurity and vulnerability.

Need for a Comprehensive Rural Employment Guarantee Scheme:

  • There was a pressing need to ensure livelihood security and enhance the economic resilience of rural households, particularly during periods of agricultural off-seasons and economic downturns.
  • A comprehensive rural employment guarantee scheme was necessary to provide a safety net for rural households, create productive assets, and promote sustainable rural development.
  • Such a scheme aimed to empower marginalized communities, promote social inclusion, and address the root causes of rural poverty and unemployment, contributing to overall economic growth and development.
Check more about Government Schemes in India here.

National Rural Employment Guarantee Act (NREGA) Objectives

  • Ensuring livelihood security by providing at least 100 days of guaranteed wage employment in a financial year to every household in rural areas.
  • Creating durable assets and improving rural infrastructure through labor-intensive works.
  • Empowering women and marginalized sections of society by promoting their participation in the workforce.
  • Enhancing the purchasing power of rural households and stimulating economic growth in rural areas.

National Rural Employment Guarantee Act (NREGA) Key Features

  • Legal Guarantee: NREGA provides a legal guarantee of employment to rural households, making it enforceable by law.
  • Demand-Driven Approach: The scheme operates on a demand-driven basis, with employment opportunities generated based on requests from rural households.
  • Wage Payments: Workers under NREGA are entitled to timely payment of wages directly into their bank accounts, ensuring transparency and accountability.
  • Focus on Asset Creation: NREGA emphasizes the creation of durable assets such as water conservation structures, rural roads, and irrigation facilities.
  • Social Inclusion: The scheme promotes the participation of women, Scheduled Castes (SCs), Scheduled Tribes (STs), and other marginalized groups, ensuring their equitable access to employment opportunities.

National Rural Employment Guarantee Act (NREGA) Key Implementation Mechanism

1. Roles and Responsibilities:

  • Central and State Governments: Formulate policies, allocate funds, and provide overall guidance and support for NREGA implementation.
  • Local Self-Government Institutions (Panchayati Raj Institutions): Gram Panchayats identify works, issue job cards, and supervise implementation at the village level.
  • Implementing Agencies: Responsible for executing NREGA works as per guidelines, ensuring transparency, and timely payment of wages.

2. Registration, Job Cards, and Work Allocation:

  • Registration of Households: Rural households register with Gram Panchayats to participate in NREGA.
  • Issuance of Job Cards: Job cards are provided to registered households, containing details of family members eligible for employment.
  • Allocation of Work: Based on demand from registered households and priorities identified by Gram Panchayats, work is allocated to eligible individuals or groups.

3. Monitoring and Grievance Redressal:

  • Monitoring Mechanisms: Regular monitoring of NREGA works is conducted at various levels, including social audits, government inspections, and third-party evaluations.
  • Grievance Redressal: Grievance redressal mechanisms, such as toll-free helplines, public hearings, and complaint registers, are in place to address issues related to wage payment delays, work quality, or corruption.
  • Accountability: Transparent reporting and dissemination of information regarding NREGA activities ensure accountability of stakeholders and promote public participation in monitoring and evaluation processes.

National Rural Employment Guarantee Act (NREGA) Key Impact

  • Poverty Alleviation: NREGA has contributed to poverty reduction by providing employment and income opportunities to rural households.
  • Asset Creation: The scheme has led to the creation of productive assets, including water conservation structures, rural roads, and livelihood assets, benefiting rural communities.
  • Social Empowerment: NREGA has empowered women and marginalized sections of society by providing them with access to wage employment and enhancing their socio-economic status.
  • Migration Control: NREGA has helped in controlling distress migration by providing alternative livelihood opportunities in rural areas.

National Rural Employment Guarantee Act (NREGA) Key Challenges

  • Delayed Wage Payments: Instances of delayed wage payments and discrepancies in wage calculation.
  • Leakages and Corruption: Challenges related to leakages, corruption, and mismanagement in the implementation of NREGA.
  • Administrative Capacity: Limited administrative capacity and institutional mechanisms at the grassroots level for effective implementation and monitoring.
  • Low Awareness: Lack of awareness and participation among rural households, especially marginalized communities, regarding their entitlements under NREGA.

National Rural Employment Guarantee Act (NREGA) Key Future Prospects

  • Strengthening Implementation: Enhancing the administrative and institutional capacity for effective implementation of NREGA at the grassroots level.
  • Transparency and Accountability: Strengthening transparency and accountability mechanisms to prevent leakages and corruption in the implementation of the scheme.
  • Convergence with Other Schemes: Promoting convergence between NREGA and other rural development programs to maximize synergies and optimize outcomes.
  • Awareness and Participation: Increasing awareness and participation of rural households, especially women and marginalized communities, in the planning and implementation of NREGA.
National Rural Employment Guarantee Act (NREGA) represents a shift in India's approach towards rural development by providing a legal guarantee of employment and livelihood security to rural households. Despite facing challenges, NREGA has made significant strides in poverty alleviation, asset creation, and social empowerment in rural areas. To succeed in upcoming exams, candidates should consider exploring PW SSC Books We provide high-quality content at an affordable price, including sample papers, mock tests, guidance sessions, and more to ensure aspirants secure their selection. Also, enroll today on SSC Online Coaching to turn your dreams into reality.

National Rural Employment Guarantee Act (NREGA) FAQs

What is NREGA?

NREGA is a government program providing 100 days of wage employment annually to rural households

Who is eligible for NREGA?

All rural households in India are eligible for NREGA employment, with priority given to marginalized groups.

What type of work is done under NREGA?

NREGA focuses on creating assets like roads, ponds, and irrigation channels, benefiting rural communities.

How is payment made under NREGA?

Wages are directly transferred to the bank accounts of workers to ensure transparency and prevent corruption.
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