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Analysis of the
MNREGAGroup 1
Roll 1,2,3,4,5
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NREGA- 2005
| The National Rural Employment Guarantee Act 2005 is a lawwhereby any adult who is willing to do unskilled manual work atthe minimum wage is entitled to being employed on local public
works within 15 days of applying, with a guarantee of 100 days ofunskilled manual work per household per year
| It extends to the whole ofIndia except the State of Jammuand Kashmir
| This programme was formerly known as National Food for WorkProgramme.
| To meet the requirement of the act the plan has been modifiedto act as a National Rural Employment Guarntee Scheme.
| Currently it covers half ofrural India, to be extended to therest within 4 years
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OBJECTIVES
| The primary objective of the Act isaugmenting Wage Employment
| The auxillary objective Naturalresource development
This work guarantee canalso serves other objectiveslike
| Generating productiveassets
| Protecting the
environment| Empowering rural women| Reducing rural urban
migration and fosteringsocial equity.
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| Its auxiliary objective as per Schedule I is strengthening natural resourcemanagement through :
| Water conservation and water harvesting;
| Drought proofing (including afforestation and tree plantation);
| Irrigation canal including micro and minor irrigation works;
| Provision of irrigation facility to land owned by households belonging to the
| Scheduled Castes and Scheduled Tribes
| to land of beneficiaries of land reforms
| that of the beneficiaries under the Indira Awas Yojana of the Government ofIndia
| Renovation of traditional water bodies including desilting of tanks;
| Land development;| Flood control and protection works including drainage in water logged areas;
| Rural connectivity to provide all-weather access
| Any other work which may be notified by the Central Government inconsultation with the State Government.
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FORMULATION
| NREGA came into force on September 7, 2005
| NREGS was formulated by the Planning Commission in
consultation with the Ministry ofRural Development andthe State Governments.
| Its implementation was notified in a phased manner.
| In phase I - it was introduced in 200 most backwarddistricts of the country on February 2, 2006.
| In phase II- 130 districts were further included underNREGS with effect from April 1, 2007.
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NEED 1990 CRISIS
Growing unemployment and underemployment
Falling purchasing power
Declining per capita availability of foodgrains -For the first
time since independence, the decade witnessed a decline in per capita
output in Indian agriculture.
Reduced farm incomes and real wage growth
Indebtedness and land alienation, esp. for small and marginal farmers.
Slackening pace ofpoverty reduction and worsening poverty amongstmarginalized social groups and ethnic minorities
According to the FAO, the number of hungry people in India increased by19 million between 1997 and 2001. Nearly half our children remainchronically malnourished
Rural India was crying out for change
It is good to see those brought to power by this verdict now seeking tofulfill the people's mandate by enacting the NREGA legislation.
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| The States were finding difficult to provide State shareof funds and therefore, a 100% Centrally SponsoredScheme was proposed so that the investment inbackward areas does not suffer because of lack ofresources available with the States.
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Current scenario
At the macro level out of the Rs 12,073 crore available for theprogramme, Rs 8,823 crores (73 per cent) was utilised.
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PERFORMACE
| The utilisation per district > Rs 100 crore
| In Rajasthan 115 crore
| Madhya Pradesh -103 crore
| Was less than Rs 25 crore in Gujarat -14, Maharashtra -18 and
Tamil Nadu - 25| The objective of 100 days of employment was not achieved in
any state.
| However, the per district person days of employment andhouseholds provided employment were comparatively high inMadhya Pradesh (1.6 lakh households, 68 days), Orissa (0.7
lakh households, 57 days), Chhattisgarh (1.7 lakh households,54 days) and Rajasthan (two lakh households, 83 days).
| In West Bengal and Tamil Nadu although three lakh and 1.2lakh households, respectively worked under the NREGA, theycould do so only for 14 and 26 days, respectively.
| In Gujarat and Maharashtra, only 30,000 and 40,000
households per district availed of the employment guarantee.
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| The performance of the administration also showspositive trends:
| Registration was completed and job cards issued
| Work was invariably provided on demand
| Their selection was also relevant water conservation(54 per cent) irrigation on SC and ST landholdings (10per cent), land development (11 per cent)
| Initiatives have been taken not just by collectors but by
the numerous village functionaries, block developmentofficers (BDOs) and officers at the field level;
| Training programmes have commenced for officials,elected representatives, NGOs and community groups.
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AMENDEMENTS
| March 6, 2007 To provide horticulture plantationand land development facilities on land owned by
households belonging to the Scheduled Castes and theScheduled Tribes orto Below Poverty Line families orto beneficiaries of land reforms or to thebeneficiaries under the Indira Awas Yojana of theGovernment ofIndia.
| July 24, 2009 - To add small and marginal farmers as
defined in the Agriculture Debt Waiver and DebtRelief Scheme, 2008.
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STAKEHOLDERS
Key Stakeholders are:
I. Wage seekersII. Gram Sabha
III. Programme Officer at the block level
IV. District Programme Coordinator
V. State GovernmentVI. Ministry ofRural Development
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Responsibility of Gram
Panchayat
| To avail NREGA benefits the applicationforregistration has to be made to the
Gram Panchayat.| Verification.
| Issue a Job Card to the household.
| Job card does not entitle a person toreceive employment. He will need to applyfor work
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Contd.
| To get employment, the job seeker shouldsubmit a written application to the Gram
Panchayat.| Issue a dated receipt for the application
| The Gram Panchayat send letters to theapplicants informing them where and whento report for work
| Allocating employment within fifteen days ofapplication
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Contd.
| If the job seeker does not get employment within
15 days of submitting the application, a daily
unemployment allowance has to be paid as per the
Act.
| If the applicant does not report to work within 15
days of being notified, he or she will not be entitled
to the unemployment allowance.
| The applicant can however, re-apply for work
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Contd.
| Work should be provided within 5 km ofapplicant's residence.
| Beyond 5 km, applicant is entitled to 10%additional wages towards transport andliving expenses.
|
Persons older in age and women sh
all begiven preference for work nearer to thevillage
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Responsibility at Block Level
| The Intermediate Panchayat will be responsible forplanning at the Block level
| Program officer at the Block level will assist theIntermediate Panchayat in its functions.
| Scrutinizing the annual development plan proposed bythe GPs.
| Matching employment opportunities with the demand forwork
| Monitoring and supervising implementation
| Ensuring that social audits are conducted by the Gram
Sabha
| Payment ofunemployment allowance
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Responsibility at District Level
| The District Panchayat will be responsible for finalisingthe District Plan.
| Appoint Programme Officers and other supporting staff
at Block Level and a village Rozgar Sevak at village level| Monitoring and supervising the Employment Guarantee
Scheme in the district.
| Consolidating block plans into district plan
| Ensuring administrative and technical approvals to the
shelf ofprojects
| Release and utilization of funds
| Submission of Monthly Progress Reports
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Responsibility at State Level
| The Department of the Directorate ofRuralDevelopment & Local SelfGovernment is the nodalDepartment at State level for coordinating theactivities ofNREGA.
| Provide information on the Rural EmploymentGuarantee scheme at the state level.
| Ensuring that the State share of the NREGS budgetis released on time
| Establishing a network ofprofessional agencies for
technical support and for quality-control measures
| Regularreview, monitoring and evaluation ofNREGS Ensuring accountability and transparency inthe Scheme at all levels
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Facilities available at work place
|Work site facilities include
| safe drinking water,
| shade for children and periods ofrest,
| first-aid box for emergency treatment ofminorinjuries and other health hazards connectedwith work.
| Ifmore than five children below six years arepresent a person should be engaged to lookafter them.
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PERMISSIBLE WORKS underNREGA
| Water conservation and water harvesting
| Afforestation
| irrigation canals, including micro and minorirrigation works
| renovation of traditional water bodies
| land development
| flood-control and protection works, includingdrainage in waterlogged areas
| construction ofroads within the village area
| No cement concrete roads should be taken upunderNREGA. Priority should be given to roadsthat give access to SC/ST habitations
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IMPLEMENTINGNREGA
Application for job card
Issue of jobcard
Demand foremployment
Work allocation
Payment of wages
Selection of works
Approval of shelf ofprojects
Informing village PRI
Preparation of estimatesAnd approvals
Acknowledgementofdemand
Maintenance ofmusterroll
Verification
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Steps involved
1) Generating and processing applications forjob cards
To ensure that unskilled manual labour are identified
Cards have personal details and photograph of the person
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2) Issue of job cards
Job card verification is done on the spotagainst an existing data base
This reduces time lag between applicationand issue of job cards
Leads to greater transparency
It is ensured that job Cards are issued
prior to employment demand andallotment of work
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4) Selection of works
Done by gram sabha in villages after approval from
all members
Public choice, transparency and accountability areensured
Sent to village PRI for approval and estimation ofcosts is done
5) Execution of Works
At least half the works should be run by gram
panchayats Different work are allocated to labours
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5) Regular measurement
Regular amount Of work done according to aschedule ofrural rates sensitive
6) Supervision of Works By qualified technical personnel on time.
Reading out musterrolls on work site during regularmeasurement
To prevent bogus records and payment of wagesbelow prescribed levels
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7) Maintenance ofmusterrolls:
Musterroll is a labour attendance registerpertainingto a particular workplace and a particularperiod
Used to claim funds
8) Payment of wages
Funds are released from banks and post offices
While releasing funds the following are checked:
Issued Job card
No. of days worked (frommusterrolls)
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Fi i th REGS
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Financing Bodies
| The Central Government
| The State Government
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The Central Government
The Central Government will bear the following costs:
| The entire cost of wages forunskilled manual workers
| 75 percent of the cost ofmaterial and wages for skilledand semi-skilled workers.
| Administrative expenses as may be determined by theCentral Government. These will include, inter alia, thesalary and allowances of Programme Officers and their
support staff and work site facilities
| Administrative expenses of the Central EmploymentGuarantee Council
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The State Government
The State Government will bear the following costs:
| 25 percent of the cost ofmaterial and wages for skilledand semi-skilled workers.
| Unemployment allowance payable in case the StateGovernment cannot provide wage employment within 15days of application.
| Administrative expenses of the State EmploymentGuarantee Council.
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MAINTENANCEOF FUNDS BY THE
GRAM PANCHAYATS| EachGra Panchayat ill havea ingle ankacco nt for the
purposeof implementingNREGS orks. ThisNREGS accountill eoperated jointly y the President and the Secretaryof
theGram Panchayat.
| All payments made from theNREGS account ill ereportedto theGram Panchayat at itsnext meetingandapproval ill eobtained. Anyobjection ill berecordedandacopyof theminutes ill besent immediately to the ProgrammeOfficer fornecessaryaction.
| Funds from theNREGS account maybespent onNREGS orks
afteronly these orkshavereceived therequiredAdministrativeand Technical Sanction from thecompetentauthorities. The President of theGram Panchayat ill bepersonally liablefor anyexpenditure made ithout suchsanctions.
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| The NREGS-related accounts of the Gram Panchayat shallbe presented for scrutiny at the biannual social audits ofthe Gram Sabha, in pre-specified formats.
| The Gram Panchayats will be authorized to spend themoney released to them on the works that have beensanctioned for them to execute. After 60 percent of theallocation given toany Gram Panchayat has been spent,
the Gram Panchayat may apply to the ProgrammeOfficer/DPC forrelease of additional funds.
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RELEASEOF FUNDS
| The National Rural Employment Guarantee Scheme differsfrom SGRY in that the release of funds is based on Stateproposals rather than on predetermined allocations.
| The first release to a district when it is notified underNREGAas seed money to the District NREGS account will be, made asdetermined by the Ministry ofRural Development.
| Subsequent releases will be made upon the submission of aLabour Budget. Funds may flow from the district to the Gram
Panchayat directly under intimation to the Programme Officer.The fund transfer from the Ministry, States and Districts maybe entered online on http://nrega.nic.in by going to the dataentry option.
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MONTHLY SQUARINGOF
ACCOUNTS
| To reduce the risk of financial leakages, and to promotetransparency and accuracy in fund management, thepractice of monthly squaring of accounts should be
introduced.
| Money held in bank accounts at various levels
| Advances to implementing orpayment agencies
| Vouchers of actual expenses.MBA- AB, SIIB 2009/11
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Case StudySUCCESS STORY OF BANANA PLANTATION AT
UKHRA G.P.UNDER NREGS ANDAL
DEVELOPMENT BLOCK
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Burdwan District Status Report( as on 31.3.2010 )
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Background
| NREGS has been launched in Andal Block in Burdwan inthe financial year of 2007-08
| This was launched in order to give the rural people anopportunity for 100 days job as well as for thedevelopment of the rural area. In a word thisprogramme has been launched for bringing a change in
the Socio- Economic structure of the place.
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Case Outlay
| There were many tanks, ponds, irrigation channels,roads to be re-executed, renovated or to be repaired inorder to facilitate the rural people for bringing a changein the socio-economic structure in the society and tomake permanent assets in the locality. As it was labour-oriented programme, the local people were involved in itwith a great enthusiasm.
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Utility of the NREG Scheme in
this particular context| Ukhra Gram Panchayat is a part of Andal Block situated at
12 K.M. distance towards north of Andal Block.
| Through NREGA works, people especially SGSY Self HelpGroups of interior villages of Ukhra Gram Panchyat are
benefitted.
This is a good success of Convergence under NREGS at UkhraGram Panchayat, one more step taken to change the socio-
economic conditions of the SHGs and to increase womenempowerment and as such this plantation project has beentaken up and the Banana Garden has been handed over toEkata Self Help Group of Ukhra G.P. to promote their activitiesand financial capabilities
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Objectives and Benefits
| Involvement of local, poorpeople in the work aslabourers to earn labour wages which will givethem financial help to maintain their daily
livelihood.
| Developed the socio-economic condition of thepoorer section of the people in Burdwan as well asthe common people of connected areas.
| Local Self HelpGroups has been benefitted andupgraded through lease of the scheme.
| Surrounding areas will be Pollution Free.
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Progress Report
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The final Question ?
The Indian National Rural
Employment Guarantee ActWill it reduce poverty and boost the economy ?
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Points ofView
a. Affordability and Sustainability :
| Social based initiative.
| National Budget for 2007-08 was 12,3000 crores (about
US$ 2.8 bn and 0.35% of the GDP)
| Critics argue that the govt. has done little to impose taxeson prosperous sections of the society and missed manyopportunities to extract fund for such programmes.
| Program will lead to fiscal Deficits crisis.
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b. Acceptability and Criticism
| The government and the National Advisory Council convincedthat the act would cause a major decline in rural poverty.
| Internationally also recognized as a good initiative.
| But issues like Rights of the poor and the defence againstcorrupt official.
| Much political rivalry on the issue.
| Impropermanagement of the scheme.
| Different party states implement without sincerity.
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(c) Targeting
The requirement of beneficiaries to register withthe lowest tier of local government-Gram
Panchayat-for jobs cards (that guarantee thebearer work)-is substantially contributing toexclusion. In Gujarat, Madhya Pradesh andJharkhand it has been found that the bribe
demanded by local officials for an application formfor a card may range from Rs 5 to Rs 50.
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Effects of the Scheme
|Evidence of the goodimplementation of the scheme ,
atleast better than the previousschemes.
|Indian rural unemployed and poor is
far better off than before..
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|Thank You
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