A Study on Economic Impact of MGNREGS with Reference to Madurai District

S Theenathayalan; M Pugalendiran

S Theenathayalan Associate Professor and Head, Department of Economics and Centre of Research in Economics, The Madura College (Autonomous), Madurai
M Pugalendiran Faculty, Department of Economics, Madurai Kamaraj University, College, Madurai

Keywords: National Rural Employment Guarantee Scheme, Public investment, durable assets, MGNREGS, stratified random sampling, savings pattern

Abstract

The Ministry of Rural Development, Government of India, initiated a holistic and integrated development scheme, viz, National Rural Employment Guarantee Scheme, which came into force during February 2005, in 200 backward districts of India. During 2007, the scheme was extended to another 130 districts and since April 2008, this scheme covers all other districts of India. This is the largest employment programme ever started in the country with a huge public investment. The focus of the scheme is to provide 100 days wage employment to rural households who wish to work and ask for work. Panchayats are involved in the planning and implementation of the scheme and creation of durable assets for sustainable development of the rural areas. There is a complete ban on the involvement of contractors and use of machinery is prohibited. The guidelines on NREGS clearly reflect the importance of social audit and greater emphasis has been placed on transparency and accountability.