National Rural Employment Guarantee Act (NREGA)
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India's United Progressive Alliance Government enacted the National Rural Employment Guarantee Act (NREGA) to provide a legal guarantee for one hundred days of employment in every financial year to every rural household with an adult member willing to do unskilled manual work.
Central Government shall meet the cost towards the payment of wage, 3/4 of material cost and certain percentage of administrative cost. State Government shall meet the cost towards unemployed allowance, 1/4 of material cost and administrative cost of State council.
The Adult members of the poor household submit their name, age and address with photo to the Gram Panchayat. The Gram panchayat register the household after making enquiry and issue job card. The job card contains the details of adult member enrolled and his /her photo. The Registered person will submit application of work in writing for at least fourteen days of continuous work either to panchayat or to Programme Officer.
The panchayat/ programme officer will accept the valid application and issue dated receipt of application, Letter providing work will be sent to the applicant and also displayed at panchayat office. The employment will be provided within a radius of 5 km: if it is above 5 km extra wage will be paid.
If employment under the scheme is not provided within fifteen days on receipt of the application daily unemployment allowance will be paid to the applicant.
The scheme starting from February 2, 2006 in a few districts will cover whole of India in five years.
For finacial year 2006-2007 budgetry support for NREGA is Rs 11300 crores.