NREGA 2005: An Overview

The National Rural Employment Guarantee Act (NREGA) 2005 is a landmark legislation enacted by the Government of India to provide legal guarantee for 100 days of employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. It aims to address rural poverty and create sustainable livelihood opportunities. Here are the key points explaining NREGA 2005 in detail:

1. Objectives
- NREGA 2005 primarily aims to enhance livelihood security in rural areas by providing employment opportunities.
- It intends to create durable assets, such as water conservation structures, rural connectivity, and afforestation, that benefit the rural community in the long run.
- The Act also emphasizes women's empowerment and their inclusion in the decision-making process by ensuring at least one-third of the beneficiaries are women.

2. Entitlements
- Under NREGA 2005, every rural household is entitled to a minimum of 100 days of employment in a financial year.
- The Act guarantees a daily wage rate that is equal to the prevailing minimum wage for agricultural laborers in the respective state.
- In case the government fails to provide employment within 15 days of the application, it is liable to provide an unemployment allowance to the applicant.

3. Implementation
- NREGA 2005 is implemented by the Ministry of Rural Development, Government of India, in collaboration with state governments.
- The Act establishes Gram Panchayats as the primary implementing agencies responsible for planning, execution, and monitoring of the employment projects.
- NREGA also establishes State Employment Guarantee Councils at the state level to oversee the implementation and address any grievances.

4. Fund Allocation and Utilization
- The Act mandates that at least 60% of the allocated funds must be utilized for wage payments, ensuring the direct benefit to the workers.
- It also specifies that no less than 50% of the funds should be allocated for projects that benefit marginalized groups, including Scheduled Castes and Scheduled Tribes.
- The Central Government provides funding to the states, which in turn transfer the funds to the implementing agencies.

5. Impact and Challenges
- NREGA 2005 has had a significant impact on rural households by providing them with a source of income and reducing poverty levels.
- It has contributed to the construction of various rural infrastructure projects, including roads, water conservation structures, and irrigation facilities.
- However, challenges such as timely payment of wages, corruption, delays in project execution, and lack of awareness among beneficiaries still persist and need to be addressed for effective implementation of the Act.

In conclusion, NREGA 2005 is a comprehensive legislation that ensures employment opportunities and livelihood security for rural households in India. By providing a legal guarantee for employment, it aims to alleviate poverty and promote sustainable development in rural areas.