MGNREGS: Centre to release funds in a week

The Central Government informed the Supreme Court that Rs. 11,030 crore will be released to States within a week to run the MGNREGA programme, especially to generate employment in drought-hit areas.

 

What Is MGNREGA?

The Mahatma Gandhi National Rural Employment Guarantee Act(MGNREGA) is an Act passed to guarantee the right to work by enhancing livelihood security in rural areas by providing at least 100 days of wage employment in a financial year to every household whose adult member volunteer to do unskilled manual work.

Certain facts about MGNREGA

  • Known for its ability to provide economic security and rural assets, MGNREGA plays a key role in areas like reducing rural-urban migration, environment protection, rural women empowerment, supporting social equity and so on..
  • Since its inception the MGNREGA has helped in increasing the number of job by 240 percent in the last ten years.

 

Affidavit filed by the Rural Development Ministry

  • The central government has informed the Supreme Court that the pending wage liability of Rs. 7,983 crore under the MGNREGA scheme as on March (for to the financial year 2015-16) would be cleared by the fund release.
  • As per the affidavit, the funds allocated would be targeted at the wage liability of Rs. 2723 crore in 10 drought affected States along with the  Rural Development Ministry allowing additional 50 days of employment to households.
  • The affidavit states that as per the Annual Master Circular (2016-17), funds would be released to States and union Territories in two parts viz. tranches.
  • The first part of the first tranche will be released within one week in April 2016 and the second part of the first tranche in June 2016 once the regular budget is passed in the Parliament.
  • The second tranche will be released to the States in October 2016 subject to fulfillment of conditions.
  • As 95 percent of wages are credited electronically delay in payment has been come down radically.

Also the Rural Ministry officials had informed the  court that they were able to provide up to 48 days of work to various beneficiaries in 2015-16.

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