Considering the increasing job demand in rural India, recently, the Ministry of Finance, Government of India has allocated additional funds of Rs.10,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) as an interim measure. Further, allocation may be made upon assessment of demand during the revised estimate stage, Ministry of Rural Development has informed.
According to the ministry, whenever, the additional fund is required, Ministry of Finance provides the funds. Owing to increased job demand in rural India due to mass reverse migration of labourers to their villages due to Covid-19 lockdown in 2020-21 financial year, Ministry of Finance had allocated an additional Rs.50,000 crore to MGNREGA.
Mahatma Gandhi National Rural Employment Guarantee Act provides a guarantee of at least 100 days of wage employment against the demand made by a household in a rural area. It is a demand-driven Centrally sponsored scheme.
During the current financial year so far over 240 crore person-days have been generated as per the demand by the beneficiaries.
Fund release towards wage and material is a continuous process. There has been an increase of more than 18 per cent of funds allocation for the current financial year in comparison to the previous financial year as budget estimates. During the current financial year so far Rs.68,568 crore have been released to the states and union territories for the implementation of the job guarantee scheme.
The Government of India releases funds for wage and material payments for proper implementation of the scheme, as per the provisions of the act and guidelines applicable for Central government as well as state governments.
Read more: Everything You Need to Know about Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
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