Salient Features

♤ A statutory minimum wage is set which is paid to labourers.

♤ Strong social safety net for the vulnerable groups

♤ Sustainable development of an agricultural economy employment on works that address drought, deforestation and soil erosion, water and soil conservation, afforestation and land development works

♤ A 60:40 wage and material ratio has to be maintained. No contractors and machinery is allowed

♤ The central government bears the 100 percent wage cost of unskilled manual labour and 75 percent of the material cost including the wages of skilled and semi-skilled workers.

♤ At least one-third beneficiaries shall be women.

♤ Social audit has to be done by the gram sabha.

Performance Evaluation of MGNREGA

Research studies on MGNREGA have pointed out many positive effects of the scheme. These are as follows:

♤ MGNREGA has helped in following:

o Increasing the bargaining power of the wage seekers

o Improving the economic outcomes especially in watershed activities

o Reducing the distress rural-urban migration

o Increasing significantly the monthly per capita consumption expenditure of the rural households

♤ It is succeeding as a self-targeting programme with high participation from marginalized groups including the SCs and STs.

♤ In the case of both SCs and STs, the participation rate exceeded their share in total population.

♤ It has reduced the traditional gender wage discrimination, particularly, in the public works and has had a positive impact on the socio-economic status of women.

♤ MGNREGA with its inter-sectoral approach opens an opportunity for convergence with different programmes optimizing public investment.

♤ MGNREGA has had a more direct and positive impact on reducing distress migration as compared to migration taken-up for economic growth and other reasons.

♤ It is also important as a supplementary source of income and is being used by rural households for starting their own ventures.