Impact of NREGS on Rural Livelihoods and Agricultural Capital Formation

The National Rural Employment Guarantee Scheme (NREGS) came into existence after the enactment of a Parliament Act 'National Rural Employment Guarantee Act' (2005) in September 2005. The scheme was launched on 26tii February from Anantapur in Andhra Pradesh. The scheme initiated in 200 districts was subsequently enlarged twice to cover all die 593 rural districts of the country. The scheme has now been re-christened as Mahatma Gandhi National Rural Employment Guarantee Scheme. The goals of die scheme are strong social safety net for the vulnerable groups by providing a fall-back employment source, growth engine for sustainable development of an agricultural economy, empowerment of rural poor through the processes of a rights-based law and new ways of doing business, as a model of governance reform anchored on me principles of transparency and grass root democracy (Government of India, 2008).