Centre asks States to split wage payments under MGNREGA scheme into separate categories

Centre asks States to split wage payments under MGNREGA scheme into separate categories

Part of: GS Prelims and GS-III – Economy 

In news

• The Centre has asked the States to split wage payments under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme into separate categories for Scheduled Castes, Scheduled Tribes and others from this financial year. 
• Separate budget heads shall also be provided by the Government for SC and ST categories 
• Funds shall be allocated according to job cards provided for SC and ST beneficiaries.

Issues with the order

• This will unnecessarily complicate the payment system,
• It may also lead to a reduction in scheme funding.

Important value additions 

About MGNREGA

• Mahatma Gandhi National Rural Employment Guarantee Act (NREGA) was notified in 2005.
• Goal – To improve the livelihood security of people in rural areas.
• It is a universal scheme guaranteeing 100 days of wage employment in a year to every rural household that expresses a demand. 
• It aims to guarantee the ‘Right to Work’.
• Every registered households receives a Job Card (JC) to track their work completed.
• The scheme is implemented by the gram panchayat.
• The failure of provision for employment within 15 days of the receipt of job application will result in the payment of unemployment allowance to the job seekers.
• Employment is to be provided within 5 km of an applicant’s residence
• Employment under MGNREGA is a legal entitlement.