National Rural Employment Guarantee Act 2004: Provisions,Potentials,Problems

Abstract

The National Rural Employment Guarantee Act (NREGA), proposed to be introduced in the next session of the Parliament, represents a historic opportunity for socio-economic transformation in rural India. The NREGA has many remarkable provisions. The Act provides every poor household in rural areas with right to at least 100 days of guaranteed employment every year for at least one adult (18 years or above) member at statutory minimum wages. The guarantee of the work is given for casual and manual work on public works. The work should be provided within 15 days of the demand and within the distance of 5 kilometers. The Act is expected to reduce unemployment in rural India, create enduring assets, augments rural income, reduce migration to urban centres, provide an antidote to inflation and channel community efforts. The main criticism of the National Rural Employment Guarantee Act is that it would cost too much and would expand opportunity for corruption.