MGNREGA, Contributing Towards Inclusive Growth
After identifying the much needed step to combat the serious problem of wide spread unemployment in the country, the National Rural Employment Guarantee Act (NREGA) was enacted on 7, September, 2005 by the central government. NREGA, renamed as Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), provides for the enhancement of livelihood security of the households in rural areas of the country by providing at least 100 days of guaranteed wage employment in every year to each household whose adult members volunteer to do unskilled manual work.
MNREGA made the Government legally accountable for providing employment to those who ask for it and thereby goes beyond providing a social safety net towards guaranteeing the Right to Employment. The most significant feature of this Act is that if a worker who has applied for work under MNREGA is not provided employment within 15 days from the date on which work is requested, an unemployment allowance shall be payable by the State Government at the rate prescribed in the Act. The Scheme is working as a social safety net. It has prevented distress migration and helped in empowerment of women.
The employment availability and wage rates have made a significant impact on the inhabitants of rural areas. Wages for rural households under the MGNREGA have increased in Maharashtra from Rs. 47 to Rs. 72, in Uttar Pradesh from Rs. 58 to Rs. 100, in Bihar from Rs. 68 to Rs. 100, in West Bengal from Rs. 64 to Rs. 100, in Madhya Pradesh from Rs. 58 to Rs. 100 in Jammu & Kashmir from Rs. 45 to Rs. 100 and in Chhattisgarh from Rs. 58 to Rs. 100 to name a few states. At the national level, the average wages paid under the MGNREGA have increased from Rs. 75 in 2007-08 to Rs. 93 in 2009-10.
Increase in wage rate and number of workdays in rural areas has increased the income of rural households. Increase in income has resulted in increase in ability of rural households to purchase food grains, other essential commodities, and to access education and health care.
About 46 lakh works have been taken up during 2009-10 and most of these (67%) relate to water conservation. This has resulted in rise in water table in dry and arid regions as large number of water conservation and drought proofing works have been taken up under the MGNREGA.
More than 9 crore saving bank accounts in the Banks and Post Offices have been opened for the MGNREGA workers under the financial inclusion program.
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