Objectives of the Scheme

• Provide legal guarantee of wage employment to rural households.
• Strengthen the livelihood resource base of the rural poor.
• Promote social inclusion of vulnerable and marginalised groups.
• Strengthen Panchayati Raj Institutions through decentralised planning and execution.

Key Features of MGNREGA

• Minimum 100 days of unskilled manual wage employment per household per financial year.
• Employment provided on demand, making the scheme self-targeting.
• At least one-third beneficiaries must be women.
• Emphasis on creation of productive and sustainable rural assets.
• Mandatory social audit by Gram Sabha for transparency and accountability.

Major Amendments (2025): Focus on Water Conservation

• Rural blocks classified as:
  • Over-exploited
  • Critical
  • Semi-critical
  • Safe
• Mandatory minimum expenditure on water-related works:
  • 65% in Over-exploited and Critical blocks
  • 40% in Semi-critical blocks
  • 30% in Safe blocks
• Classification based on the Dynamic Ground Water Resources Assessment.
• District Programme Coordinator / Programme Officer responsible for ensuring compliance.

Administrative and Financial Structure

• Launch Year: 2005
• Type: Centrally Sponsored Scheme
• Funding Pattern: 60:40 (Centre : States)
• Nodal Ministry: Ministry of Rural Development
• Budget Allocation (2025): ₹86,000 crore

Coverage and Eligibility

• Eligible Beneficiaries:
  • All rural residents above 18 years of age
• Geographical Coverage:
  • Entire country except districts with 100% urban population

Wage and Employment Provisions

• Wages indexed to CPI-AL.
• States/UTs may notify wages higher than central rates.
• Additional 50 days of employment permitted:
  • In drought or natural calamity-affected notified areas
  • For eligible ST households in forest areas under FRA, 2006
• States may provide additional employment days from their own funds.

Worker Rights and Safeguards

• Unemployment allowance if work is not provided.
• Wages to be paid within 15 days.
• Delay compensation at 0.05% per day beyond the 16th day after muster roll closure.

Special Focus on Vulnerable Groups

• Persons with disabilities
• Primitive Tribal Groups
• Nomadic and De-notified Tribes
• Women in special circumstances
• Senior citizens (above 65 years)
• HIV-positive persons
• Internally displaced persons
• Rehabilitated bonded labour

Implementation Mechanisms and Innovations

• Wage–material ratio: 60:40 at Gram Panchayat level.
• Geo-NREGA: Geotagging of assets at pre-, during- and post-creation stages.
• Project UNNATI: Skill development of workers to facilitate transition to sustainable employment.

Achievements

• Recognised as the largest employment-based social security programme in the world.
• Women’s participation increased from 48% in 2014 to 58% in 2025.
• Significant contribution to rural income stability, asset creation, and climate resilience.