National Rural Employment
Guarantee Act 2005
SOME SALIENT FEATURES
An
Important Commitment of the UPA Government Fulfilled
The National Rural Employment Guarantee Act,
2005 is a revolutionary step in the direction of eradicating poverty and
unemployment in rural areas. The UPA Government feel that effective execution of
this Programme would mitigate the need to seek employment in the urban areas.
Accordingly, the Government had identified 200
districts on a rational basis and without discrimination where the
implementation of this Programme would be commenced and would, progressively,
cover all the districts of the country.
Shri Rahul Gandhi had taken the initiative to
take up with the Government the issue of extending the Coverage of this
programme to all the districts of the country. He had led a delegation to
the Prime Minister in this regard and had achieved success for his demand.
Thus the programme is now being extended from
01.04.2008 to all the districts of the country.
The National Rural Employment Guarantee Act
embodies the fulfillment of an important promise made to the people by the UPA
Government in the National Common Minimum Programme.
Background
-
To bring the NREG Act, was a
pledge under the National Common Minimum Programme of the UPA government, for
the poverty alleviation and sustenance of rural people including Schedule Caste
and Schedule Tribe.
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The Act has been brought after
extensive consultations and inputs from social activists, NGOs, experienced
administrators and from people living in rural areas themselves. Before getting
it passed from the parliament, there was extensive public debate on the Bill and
it was a rare example of collaboration between civil society and government, and
partnerships cutting across political lines.
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With the implementation of this
Act, a new era will begin in the life of rural poor, villages will have
facelift, women will have self confidence, children will smile and get an
environment around them to have a proper growth.
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The NREG Act is a historic
landmark in the economic history of the rural people, which will bring social
equity and justice to them as fundamental changes in the villages are envisaged
through the implementation of this Act. The Act provides the enhancement of
livelihood security of households in rural areas of the country and will help to
curb the migration of rural poor to neighbouring towns and cities in search of
employment. The UPA government is committed to uplift economically through this
Act the two third of the country?s population, which lives in villages and far
flung areas.
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Through the implementation of this
Act, Panchayats will have financial and administrative empowerment. Under the
implementation of the Act durable assets will be created, which will strengthen
the livelihood resource base of the rural poor. The works have been so chosen
that they will enhance the productivity of the land with consequent effect on
the livelihoods of the poor. Under the listed works ample opportunities will be
created for irrigation of lands owned by schedule castes and tribes.
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The total transparency in
implementation and greater participation of people to plan the development of
their own village and surrounding is a hallmark of this Act.
Preamble
The Act aims to provide the enhancement of
livelihood security of the households in rural areas of the country by providing
at least one hundred days of guaranteed wage employment in every financial year
to every household whose adult members volunteer to do unskilled manual work.
Excerpts from the speech by
Smt. Sonia Gandhi
Chairperson, National Advisory Council
delivered in Loksabha on 18th August
2005
I stand here in support of the National Rural
Employment Guarantee Bill. For me the presentation of this Bill marks a historic
occasion. Today, we are fulfilling our most important promise made in the
Congress Party?s manifesto in 2004. Today, we are also fulfilling an important
pledge of the UPA Government?s Common Minimum Programme (CMP).
People living in rural areas of our country, or
those who extensively tour our villages know it very well that a large number of
our rural population needs employment and they wander in search of a meaningful
employment. There is a huge lack of infrastructure and this is clearly evident.
Through this important Bill on National
Employment Guarantee we seek solutions to both these issues and to usher in a
fundamental change in our villages as we sincerely realize that two-third of our
brothers and sisters live in these villages. Through this Bill, we set in motion
a new beginning to enable them to enjoy their right, their legal right, so that
they should have a better tomorrow for themselves.
We had first discussed the present outline of
the National Employment Guarantee programme in 2002 at Guwahati during the
Congress Chief Ministers? convention. This was again taken up for discussion at
Mount Abu and than at Srinagar
convention in 2003. We felt that it was of utmost importance and necessity to
provide employment guarantee and increase and improve basic infrastructure in
rural areas.
Thus, the Bill became the central theme of our
party?s manifesto in 2004.
In the 1970s, when drought struck Maharashtra,
the then Chief Minister V. P. Naik and Gandhian V. S. Page with full support of
Indiraji implemented the employment guarantee programme in Maharashtra. In the years to
follow efforts were made to implement this programme on national scale but this
could not be accomplished for one reason or the other.
I still remember that in 1980 Indiraji launched
the Employment Guarantee programme for Rural Landless. In 1987, Rajiv Gandhi
initiated the Jawahar Rojgar Yojana. Then, in 1993, when Dr. Manmohan Singh was
the Finance Minister in Shri P. V. Narsimha Rao?s cabinet, Employment Assurance
Scheme in 120 backward districts of the country was launched. The basic
principle of all these programmes was restricted only to the executive guarantee
of employment. But, our National Rural Employment Guarantee Programme, like
Maharashtra?s Employment Guarantee Scheme, is based on the principle of legal
guarantee meaning that it will be enforced as a law.
This Bill has been prepared after extensive and
comprehensive deliberations and discussions with social workers,
non-governmental organizations, experienced administrators and the villagers.
The National Advisory Council had the opportunity of going through and
understanding the main points of this Bill. The Standing Committee of the
Parliament as well as other ministries have also seriously considered the
framework of this Bill. There has been a vast public debate also on this bill.
The Bill is a living example of how political differences can be sidelined to
ensure cooperation of the society and the government.
In a way, as a prelude to the National
Employment Guarantee Programme the UPA government has implemented a national
?Food for Work? programme in 150 most backward districts of the country. While
mentioning the ?Food for Work? prgramme, I can not resist myself to remind the
House that three years back when our food reserves exceeded Six crore tonnes,
many states particularly the Congress-ruled states had to bear the brunt of
severe drought. At that time, our party had requested the then NDA Government to
launch a nationwide ?Food for Work? programme, so that the lives of millions of
people could be saved. Our food reservoirs were overflowing but sadly our people
were made to suffer. The NDA Government turned a deaf ear to our persistent
pleas.
Therefore, the Congress, and all of us who are
part of UPA, by means of this Bill. feel content to usher in relief in the lives
of crores of people, who really and desperately need it.
There are numerous significant features in this
bill but to my mind there are vital ones which I would like to highlight.
First, elected Panchayat institutions have been
given a pivotal role. This programme would, therefore, lead to the financial and
administrative empowerment of Panchayat bodies as well.
Second, the Bill goes beyond traditional civil
works. It includes watershed development, renovation of waterbodies, desilting
of tanks, afforestation and wasteland restoration. And for the first time
irrigation works can be taken up on lands owned by scheduled castes and
scheduled tribes and women labourers will be given priority.
Third, the Bill clearly prohibits the engagement
of contractors for the execution of works.
These significant features apart, this act is
coming into force against the background of the UPA?s ?Right to Information
Act?, passed three months ago. This is an Act, far, far more progressive than
the NDA?s Freedom of Information Act.
The new Right to Information Act will enable
social audit and greater public scrutiny of the programme. It will ensure
greater accountability of Panchayat bodies and district administrations as well.
For example, muster rolls will no longer be secret and budgets and works will be
public knowledge. All this together, will ensure that only those who really need
work will be employed, and only those schemes required by the community are
taken up.
Employment guarantee programmes are not a
substitute for sustained economic growth. We see economic growth and employment
guarantee going hand in hand. We also do not see such a programme as a hand out,
a ?dole? or a populist ?give away?. We see this Act as the human face of
economic reforms, making the process of economic growth more inclusive, more
equitable.
This programme is part of the Congress Party?s
and the UPA?s agenda for social transformation. It is part of an agenda which,
in the last 14 months, has seen unprecedented increases in public expenditure in
elementary education, mid-day meals, public health and women and child
development; it is an agenda to which all of us in the UPA Government are
committed.
Our country is full of success stories which
inspire us. But there is still widespread destitutions, which pains and
challenges us. Our country has touched great heights of endeavour, which we
acclaim. Yet there is still vast deprivation which we must all strive to
eliminate.
We all know how inequitable and unjust the lives
of the poor are, especially when compared to the excesses and waste we see
around us. This National Rural Employment Guarantee Act is a response to the
needs of crores of Indians whose right it is, better life for themselves and for
their children.
A time will come, and I hope not too far in the
future, when there will be no need for such an extensive programme. But till
such a time, we can not sit idly by, and hope the economic reforms alone will
create adequate employment opportunities in rural India.
I would like to say something on the financial
implications of this legislation. This has invited some critical comment. I
believe that an economy that is growing at 7% per year can and should find the
resources for such a crucial intervention. While it is for the Central
Government to find bulk of the resources, the states too have a key role to play
in its monitoring and implementation.
I do feel that we must also use this momentous
occasion to effect fundamental changes in the government expenditure to better
support larger social goals. I believe that we also need to consolidate our many
schemes and programmes. We now have an opportunity for using employment
guarantee for irrigation and rural roads which are very mush part of the UPA
Government?s Bharat Nirman programme.
As someone, who has implicit faith in this Bill,
I also acknowledge that there has been some cynicism and concern about it. These
doubts can not be dismissed; they have to be addressed. Let us be frank with
ourselves. Our programmes do not always work out the way they are planned. The
benefits do not always reach the poor. Delivery systems claim too large a share
of the outlays. While the central and state governments must bring about
innovations in delivery systems, political parties themselves have to pay a
proactive role in monitoring and mobilization. Above all, we need to rid
ourselves of the ?Sab Chalta Hai? attitude.
Before I conclude, I want to personally thank
our Prime Minister under whose leadership this Bill is being introduced for his
steadfast support to it and to its objectives. He has had to balance various
considerations but in standing firmly behind this Bill, he is standing up for
crores of our people whose lives depend on its success.
We are passing a truly radical law, a law which
has far reaching and profound consequences. But the real challenge begins now,
in making sure that the legislation works in the manner it is meant to, in a
manner that will tangibly impact the lives of crores of our brothers and sisters
in rural India.
To this I am committed. To this the Congress
Party is committed. To this the UPA Government is committed.
Salient Features
Question : What is the aim of this Act?
Answer : The Act aims to enhance
livelihood security of the rural households by providing them guaranteed wage
employment in unskilled manual work.
Salient Features of NREG Act:
Question : What are the salient features
of the National Rural Employment Guarantee Act?
Answer : Following are the salient
features of the National Rural Employment Guarantee Act:-
a)
Historic Act.
For the first time in the history of India, every rural household will have right to
livelihood through guaranteed 100 days of employment in a financial year at
their own place.
b)
Right to demand work.
Every household will have right to demand 100
days employment from the government. Thus, it is demand driven scheme and not
supply driven as the earlier wage employment scheme.
c)
Unemployment Allowance.
If State Government failed to provide 100
days employment on demand to any household then compensation will be paid by the
State Government to the eligible applicants subject to household entitlement in
terms of un-employment allowance as per rates prescribed.
d)
Selection of works by villagers.
Villagers themselves, not officials,
will decide through Gram / Ward Sabha, the priority works to be taken up to
develop their village from amongst the permissible works.
e)
Priority to women. Women will have priority in the scheme for allocation of employment and
1/3rd of the employment will be provided to them.
f)
Complete transparency.
There will be complete transparency in the scheme and wages will be paid in full
public view. For example, muster rolls will no longer be secret and budget and
works will be in public knowledge.
g)
Ban on contractors. Contractors will not be permitted under the scheme.
h)
Pivotal Role of Panchayats.
Panchayats at all levels will play pivotal role in planning and implementation
of the scheme.
i)
Work site facilities for Labourers.
Under the scheme, a number of facilities will be provided at work-site. Besides,
there are provisions for free medical treatment in case of injury at worksite
and compensation in case of death or permanent disability of labourers.
Question : Who will be benefited under
the NREG Scheme?
Answer : a) Every household in rural
areas, whose adult members are willing to do unskilled manual work.
b)
Villages will be able to create
durable community assets which will enhance the livelihood resource base of the
rural poor.
c)
Panchayati Raj Institutions will
be empowered financially and administratively.
Question : How NREG Scheme is different
from earlier wage programmes?
Answer : a) It provides legal
guarantee for employment to the rural people.
b)
People?s participation,
transparency and accountability have been given prime focus.
c)
It is demand driven scheme, while
earlier wage programmes were supply driven.
d)
Under this Scheme 100 days of
works is guaranteed, while in earlier schemes the employment depended on
allocation of funds.
How the Scheme will work?
Registration of applicants and employment:
Question : What is eligibility for
employment?
Answer : Every household in rural
areas whose adult members are willing to do unskilled manual work is eligible
for employment.
Question : What is the procedure for
getting employment?
Answer : The adult members of every
household are to submit their names, age and address for registration to the
Gram Panchayat, who are duty bound to register them after making such inquiry as
it deems fit. This registration will be valid for five years.
Question : How the households will know
they have been registered:
Answer : After registration, every
household will be issued a job card.
Question : Whether employment will be
provided automatically after registration / receiving the job card?
Answer : No. The registration / job
card means only the entitlement for employment. But to get employment, the
registered adult should request for it through an application in writing to Gram
Panchayat or Programme Officer and ask dated receipt of application. The
application is to be submitted for at least 14 days of continuous work.
Question : If some one is already
employed but wants work under the Scheme immediately after completing his/her
current work, then what is the procedure?
Answer : In this case applicant should
submit advance application stating the date from which he/she wants work.
Question : For how many days one
applicant can get employment?
Answer : There is no limit on the
number of days of employment for which a person may apply or provided
employment, subject to the aggregate entitlement of his/her household.
Question : Can number of people together
give one application for employment?
Answer : Yes, The group application
can be submitted.
Question : After giving application when
implement will be provided?
Answer : Within 15 days of submitting
the application or the date from which employment is sought, whichever is later,
employment will be provided. If in any case that is not provided, then the
applicant becomes eligible for un-employment allowance.
Question : Who will allocate employment
opportunities to labourers?
Answer : The Gram Panchayat will
allocate employment opportunities to labourers.
Days and Type of employment:
Question : Whether every adult members of
a household will get 100 days employment?
Answer : No. Only the household as a
whole will get 100 days employment, These days can be split among adult members.
Question : If any adult is already
working for a few months in a year, can he/she also get employment under the
scheme?
Answer : Yes, he/she can also get
employment subject to the condition that he/she is willing to do unskilled
manual work and also subject to household entitlement of 100 days employment in
a financial year.
Question : Is there guarantee for
skilled, semi-skilled employment also under the scheme?
Answer : No. Under the scheme
guarantee will only be for unskilled manual work. However, implementing agency
may employ semi-skilled and skilled workers necessary for execution of projects.
Provisions for women:
Question : Whether women will get
priority for employment?
Answer : Yes, They get priority and
1/3rd among labourers will be women.
Question : Whether women will get same
wages as men or less?
Answer : Same wages shall be given to
women and men. There is no discrimination against women labourers.
Question : If any women has small
children, can they accompany the mother, when she goes for work?
Answer : Yes. Shades shall be provided
at work site for the children below the age of six years accompanying the women
labourers.
Question : Who will look after these
children in shades?
Answer : If there are five or more
such children accompanying the women labourers at work site, one women labourer
shall be deputed to look after the children and she shall be paid full wages.
Wages and payments:
Question : What wages would be paid to
the labourers?
Answer : Minimum wages fixed for
agricultural labours by the respective state governments will be paid as wages
under the Schemes till such time that the Central Govt. specifies wage rate
which will not be less than rupees 60 per day per person.
Question : How the wages will be paid? In
cash or kind?
Answer : Wages will be paid fully in
cash or partly in cash and partly in kind. However, minimum 25% of wages shall
be paid in cash.
Question : When the wages will be paid?
Answer : Wages are to be paid on
weekly basis and in any case not later than 15 days.
Question : Is these any possibility to
get wages on daily basis?
Answer : There is a provision for
paying a portion of the cash wages on daily basis.
Question : How transparent will be
payment?
Answer : There shall be complete
transparency in payment of wages, as all payments of wages in cash and
unemployment allowance shall be made directly to the person concerned and in the
presence of independent persons of the community on pre-announced dates.
Question : If employment is not provided
in village and applicant travels to the work site, then who will give the travel
expenses?
Answer : If employment is provided
beyond 5 km radius of the applicant?s residence then he/she is entitled for 10%
additional wages towards the transport and living expenses.
Un-employment allowance:
Question : Who will get un-employment
allowance?
Answer : If the eligible applicant
does not get employment within 15 days of demand of work or the date from which
he has sought work, whichever is later, he shall be provided unemployment
allowance.
Question : What amount will be paid as
un-employment allowance?
Answer : The rate of unemployment
allowance will be 1/4th of the wage rate for the first 30 days and ?
of the wage rate after that during the financial year subject to the household
entitlements.
Question : If employment is not provided,
for how many days the applicant will get unemployment allowance?
Answer : The applicant is entitled to
get unemployment allowance, if the employment is not provided, for such period
that the household of the applicant has not earned as much from the wages and
unemployment allowance taken together as is equal to wages for 100 days of work
during the financial year.
Facilities at worksite:
Question : What kind of facilities
will be provided to labourers at work site?
Answer : At work-site, safe drinking
water, shades for children, periods of rest and first aid box shall be provided.
Question : What happens if any labourer
gets injured at work site?
Answer : If any labourer gets bodily
injured during the course of employment at work-site, the person is entitled for
free medical treatment from the state government.
Question : If injured labourer needs
hospitalization, then who will bear the cost?
Answer : In case of hospitalization of
the injured labourer, the respective state government shall provide complete
treatment, medicines, accommodation without any charge and shall pay daily
allowance to the injured person, which shall not be less than ? of wage rate
applicable.
Question : What happened if any labourer
dies or gets permanent disability due to some accident/other reason at
work-site?
Answer : In case of death or permanent
disability to the registered labourer due to accident/other reasons at
work-site, an ex-gratia payment of Rs. 25,000 or such amount as may be notified
by the central government shall be paid to the legal heir of the deceased or to
the disabled as the case may be.
Gram Sabha & Panchayati Raj Institutions:
Question : What is the role of Gram Sabha?
Answer : The Gram Sabha will recommend
works to be taken up under the scheme to the Gram Panchayat. The Gram Sabha will
monitor all the projects taken up in the jurisdiction of the Gram Panchayat and
conduct social audit.
Question : What is the role of Panchayats
in the Scheme?
Answer : Panchayati Raj Institutaions
(PRIs) have pivotal role in the Scheme. The Village, Intermediate and District
Panchayats shall be the principal authorities for planning and implementation of
the scheme made under the NREG Act.
Question : Can PRIs be the implementing
agencies?
Answer : PRIs at all levels can be the
implementing agencies under this Scheme.
Question : What is the role of Gram
Panchayats?
Answer : a) The Gram Panchayats have
many responsibilities under the Scheme. They will register the eligible adults
of every household under its jurisdiction and issue job cards.
b)
The Gram Panchayat shall be
responsible for identification of the projects to be taken up in its area under
the scheme as per the recommendations of the Gram/ward Sabha and the same shall
be forwarded to programme officer for scrutiny and preliminary approval.
c)
The Gram Panchayat shall prepare
a development plan and maintain shelf of possible works to be taken up under the
scheme as and when demand for work arises.
d)
The Gram Panchayat shall allocate
employment opportunities among the applicants and ask them to report for work.
e)
At least 50% works in terms of
cost will be allotted to Gram Panchayats for implementation.
Question : What is the role of the
Intermediate Panchayat?
Answer : The Intermediate Panchayat
shall approve the block level plan and forward the same to District Panchayat
for approval. The Intermediate Panchayat will also supervise and monitor the
works taken up at the Gram Panchayat and Block levels.
Question : What is the role of District
Panchayat?
Answer : The District Panchayat shall
finalise and approve block-wise shelf of projects to be taken up for
implementation under the scheme. The District Panchayat will also supervise and
monitor the projects taken up at Block level and District level.
Involvement of Government Officials:
Question : What would be the involvement
of Government officials in the Scheme?
Answer : The Officials at the district
and block levels will be involved in the implementation of the scheme.
Question : Which official will be
responsible for implementation of the scheme at the Intermediate Panchayat
level?
Answer : An officer of the level of
Block Development Officer will be appointed at each Intermediate Panchayat level
under this Act. He will assist the Panchayat at the intermediate level. He will
be called Programme Officer.
Question : Will Programme Officer not be
an over-burdened official with many other responsibilities in the Block?
Answer : The Programme Officer will be
appointed only for the implementation of this scheme and cost of his salary and
that of his supporting staff will be borne by the Central Government.
Question : What would be responsibilities
of Programm Officer?
Answer : a) The Programme Officer
shall prepare the block plan after consolidating the project proposals prepared
by the Gram Panchayats and the Intermediate Panchayats.
b)
He will match the demand for
employment with the employment opportunities and will be responsible for paying
the unemployment allowance.
c)
He will also be responsible for
monitoring of projects, dealing with complaints and ensuring regular social
audit.
d)
He will assist the Panchayat at
the Intermediate level.
Question : Whether there will be any
government official at district level?
Answer : Yes, An official at district
level will be given responsibility to coordinate the programme in the district
and he will be called District Programme Coordinator (to be designated by the
state government).
Question : Whom can the State Government
designate as the District Programme Coordinator?
Answer : The Chief Executive Officer
of the District Panchayat, the Collector or any other officer of equivalent rank
can be designated as the District Programme Coordinator by the State Government.
Question : And what would be
responsibilities of the District Programme Coordinator?
Answer : a) The District Programme
Coordinator shall be responsible for implementation of the scheme and will
assist the District Panchayat in discharging its functions.
b)
He/she will co-ordinate with
various agencies involved in the implementation of the Schemes.
Monitoring:
Question : Who will monitor the programme
for effective implementation?
Answer : Monitoring will be done at
many levels which includes Panchayats at Intermediate and District levels,
District Programme Co-ordinator and Programme Officers.
Question : Does Gram Sabha also be
responsible in monitoring the implementation of projects?
Answer : Yes. Monitoring of all
projects under the jurisdiction of Gram Panchayat will be done by the Gram Sabha
along with Social Audit. It will include those projects also which are
not implemented by the Gram Panchayat.
Question : Whether any state or central
level agencies will be involved in monitoring?
Answer : Yes. Monitoring will also be
done by the Employment Guarantee Councils at the Central and State levels.
Question : What are these councils?
Answer : A high powered employment
Guarantee Council will be set-up at Central and State level for effective
implementation of the Scheme.
Type of work under the scheme:.
Question : What kind of assets will be
created under the Scheme?
Answer : An important objective of
Scheme is to create durable assets and strengthen the livelihood resource base
of the rural poor, so that the rural poor will have means for sustenance in
future also.
Question : Then what kind of works are
permissible under the Scheme?
Answer : In their order of priority
the following works are permitted:-
a)
Water conservation and water
harvesting.
b)
Drought proofing, including
afforestation and tree plantation.
c)
Irrigation canals including micro
and minor irrigation works.
d)
Irrigation facilities for land
owners by household belonging to SC/ST or to land of beneficiaries of land
reforms or that of the beneficiaries under the Indira Awas Yojana.
e)
Renovation of traditional water
bodies, including de-silting of tanks.
f)
Land development.
g)
Flood control and protection of
works, including drainage in water logged areas.
h)
Rural connectivity to provide
all-weather roads.
i)
Any other work, which may be
notified by the Central Government in consultation with State Governments.
Finances:
Question : How the funding will be done
in the Scheme?
Answer : Under the NREG Act the
Central Government is legally committed to provide 90% of funds for
implementation of the Scheme and the remaining 10% funds will be contributed by
the state governments.
Question : Out of the total funding what
is a ratio for wages and material component?
Answer : A total 60% of funds will be
utilized for meeting the cost of unskilled wages and 40% for materials component
of the works including the cost of wages of semi-skilled and skilled labourers
under the scheme.
Question : How the Central government
funds will be used?
Answer : The Central Government will
provide funds for:-
a)
Entire wage bill for unskilled
manual labourers.
b)
Upto 75% of the material cost of
the scheme including payment of wages to skilled and semi-skilled workers for
execution of projects.
c)
The expenses of the salary of the
Programme Officers and his supporting staff.
Question : And what about use of State
government funds?
Answer : State Governments shall meet
the cost of:
a)
One-fourth of the material cost of
the scheme including payment of wages to skilled and semi-skilled workers for
execution of projects.
b)
The cost of unemployment allowance
payable, if any, under the scheme.
Question : Will any Funds dedicated to
the Scheme be created?
Answer : A National Employment
Guarantee Fund will be created at the Central Government level. The States may
also create State Employment Guarantee funds.
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