Union Cabinet approved release of wages directly into the account of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) workers.
The decision was taken by the Union Cabinet chaired by Hon. Prime Minister Narendra Modi, in New Delhi.
The transfer will be based on a fund transfer order to be generated by states’ implementing agencies in accordance with procedures prescribed by Rural Development Ministry.
The decision is aimed at further streamlining the flow of funds and to empower state governments to deliver entitlements as per the objectives of the Act.
What are the benefits of the decision?
- The proposed system would benefit all stakeholders and improve overall efficiency of implementation.
- The scheme will also ensure bring greater transparency in movement of funds and lesser levels of corruption in MNREGA.
- The gram panchayats would also be empowered to take up work according to the agreed labour budget, without struggling for release of funds.
- After this scheme the state governments would be able to spend more time in planning and improving the process efficiency, without bothering to manage funds for implementation of scheme.
