MGNREGA at Village Level — Set 4

Correct Answer: B. B) 6%

Under MGNREGA, administrative costs are capped at 6% of the total expenditure on the scheme. This limit ensures that the maximum proportion of funds is directed towards actual wages and asset creation rather than administrative overheads. The 6% includes costs for maintaining MIS, capacity building, monitoring and evaluation, and administrative personnel. Central government bears the cost of wages of unskilled manual workers, 75% of material costs, and administrative costs within the 6% ceiling. This financial architecture ensures maximum pass-through to intended beneficiaries.

Correct Answer: B. B) A direct benefit transfer mechanism linking wages to Aadhaar-seeded bank/post office accounts

The Aadhaar-based Payment System (ABPS) under MGNREGA links workers' wages directly to their Aadhaar-seeded bank or post office accounts through the National Payment Corporation of India's Aadhaar Payment Bridge. This Direct Benefit Transfer mechanism eliminates middlemen and reduces leakages in wage payment. Workers must have their Job Cards seeded with Aadhaar numbers to receive wages through ABPS. The system has significantly improved timely wage payment and reduced cases of wages going to ghost workers or fictitious accounts.

Correct Answer: B. B) Supreme Court orders have directed states to ensure timely wages, social audits, and grievance redressal

The Supreme Court of India has played an active role in strengthening MGNREGA implementation through PIL judgments and orders. The Court has directed states to ensure timely wage payment, conduct regular social audits, establish Ombudsmen, and maintain transparency in MIS data. In the landmark People's Union for Civil Liberties (PUCL) case related to Right to Food, the Court issued a series of interim orders strengthening MGNREGA as a legal entitlement. The Court's active oversight has helped institutionalise accountability mechanisms and ensured that MGNREGA functions as a right-based programme rather than a discretionary scheme.

Correct Answer: B. B) A pre-approved list of works ready for implementation to ensure employment can be provided within 15 days

The 'shelf of projects' under MGNREGA refers to a pre-approved list of works prepared by the Gram Panchayat and approved by the Gram Sabha, which can be immediately taken up when workers demand employment. Maintaining an adequate shelf of projects ensures that the Gram Panchayat can provide work within the mandated 15-day window. The shelf is prepared annually as part of the GPDP process and must contain sufficient works to absorb the expected demand in each village. An inadequate shelf of projects is one of the main reasons for failure to provide timely employment and subsequent unemployment allowance liability.

Correct Answer: B. B) Natural resource management works directly benefiting households, especially SC/ST and small/marginal farmers

Under MGNREGA's revised guidelines, Category A works include water conservation and water harvesting, drought proofing, irrigation canals, renovation of traditional water bodies, land development, and works benefiting individual households especially SC/ST, small/marginal farmers, and beneficiaries of land reforms. These works have priority in fund allocation and must constitute the bulk of MGNREGA expenditure. Category A works are preferred because they create durable natural resource assets that directly enhance the livelihood base of the poorest households. This categorisation ensures MGNREGA funds create lasting value for vulnerable communities.

Correct Answer: B. B) PMGSY constructs all-weather roads with quality standards while MGNREGA builds rural connectivity tracks with unskilled labour

Pradhan Mantri Gram Sadak Yojana (PMGSY) is a dedicated programme for constructing all-weather roads connecting unconnected rural habitations with engineering quality standards, while MGNREGA's rural connectivity works focus on farm access tracks and link roads built primarily with unskilled labour. PMGSY roads involve skilled contractors, quality control, and permanent structures, whereas MGNREGA roads are simpler connectivity works that provide employment to local labour. PMGSY is fully funded by the Central Government and implemented through state PWDs, while MGNREGA is demand-driven and GP-implemented. Both schemes complement each other in improving rural connectivity.

Correct Answer: B. B) Ministry of Rural Development presents it to both Houses of Parliament

The Ministry of Rural Development is required to present an Annual Report on the implementation of MGNREGA to both Houses of Parliament every year. This report contains data on employment provided, expenditure, asset creation, and performance indicators across all states. The annual report enables parliamentary oversight of the world's largest employment guarantee programme. Additionally, the Central Employment Guarantee Council submits its own annual report to the Central Government, which is laid before Parliament. These reports ensure democratic accountability and inform policy corrections in programme implementation.

Correct Answer: B. B) Employment is provided based on workers' applications, not pre-fixed targets

MGNREGA is a 'demand-driven' programme, meaning employment must be provided whenever a rural household applies for work, rather than based on pre-fixed targets or quotas. Any adult member of a rural household willing to do unskilled manual work can apply for work under MGNREGA and must be provided employment within 15 days. This demand-driven nature makes MGNREGA a legal entitlement rather than a supply-side programme. The demand-driven approach means that during droughts, floods, and agricultural lean seasons, employment automatically expands as more workers seek it, providing a self-adjusting social safety net.

Correct Answer: B. B) State Government based on district-wise estimates

Under MGNREGA, the Annual Labour Budget (ALB) is prepared by each state government based on estimates of person-days of employment expected to be generated, aggregated from district and block level projections. The ALB is submitted to the Ministry of Rural Development before the start of each financial year. It forms the basis for release of central funds to states. The ALB preparation involves bottom-up planning from Gram Panchayat level through blocks and districts to the state. States that project and utilise higher person-days receive more central allocation, creating an incentive for active implementation.

Correct Answer: B. B) To record GPS coordinates and photographs of assets created under MGNREGA for transparency

Geo-tagging of MGNREGA assets involves recording the GPS coordinates and photographs of all works completed under the programme using the National Asset Directory mobile application. This creates a transparent, verifiable digital record of assets created under MGNREGA that can be inspected by any citizen, auditor, or official. Geo-tagging helps detect fictitious works, confirms actual asset creation, and enables monitoring of asset quality and maintenance. As of recent years, over 5 crore MGNREGA assets have been geo-tagged in the national database, making it the largest geo-tagged asset registry in India.