National Rural Employment Guarantee Act | NREGA

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Hi friends, in today’s article we are going to know about National Rural Employment Guarantee Act (NREGA) in India. So let’s discuss in details.

What are the National Rural Employment Guarantee Act in India?

The NREGA was introduced in India as a job guarantee scheme under the scheme of Mahatma Gandhi NREGA 2005. But this act was renamed on October 2nd, 2009 as NREGA. The major objective of this programme can be stated as follows –

(i) This act aims at improving the purchasing power of rural poor people by providing them wages per day. The wages which are provided under this plan is contributed by both the central as well as states govt.

(ii) This act aims at establishment of local Gram Panchayat for successful operation of this scheme. All the members of a rural house hold who are unemployed and willing to do unskilled manual work should registered this name in Gram Panchayat.

(iii) This act also aims at providing employment within 15 days of application for work. It is not, then daily unemployment allowance as per the act has to be paid to unemployed persons of the state.

(iv) This guarantee act has another important objective of provide working facility ordinarily within 5 km areas of the country. It is not, then extra wages of 10% are paid to the unemployed persons as transportation and living expanses.

(v) This plan makes provision for providing wages to unemployed persons on daily basis rate. It should also be noted that the workers are also provided various facilities like drinking water, bisure, etc.

(vi) This plan also aims to 60:40 wage and material ratio has to be maintained. It should be noted that no constructor or machinery is allowed.

Limitation of National Rural Employment Guarantee Act

The employment guarantee scheme has subjected to a number of limitations because of which its effectiveness still remain persist. The major limitations of this guarantee act can be stated as follows –

  • One of the important limitation of this act is that it is suffering the problem of financial crisis. The supply of fund provided through the unemployed person through this plan is much more lower than its demand.
  • Another important criticism of this act is that is fails to provide landside, construction of roads, water conservation, etc. effectively.
  • It is also widely criticized that the NREGA has contributed has from labour shortage.
  • Another important drawback of successful implementation of this programme is the existence of the problem of red tapism. It results decrease in productivity of worker.
  • Due to lack of poor govt. peoples active participation this act is much away from its success.


So friends, this was the Mahatma Gandhi national rural employment guarantee act. Hope you get the full details about it and hope you like this article.

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