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Economics • Indian EconomyEasy

What is the primary objective of the Mahatma Gandhi National Rural Employment Guarantee Act in India?

A. To enhance livelihood security in rural areas 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.✓ Correct Answer
B. To provide interest-free capital loans for establishing large-scale heavy manufacturing industries in backward districts.
C. To distribute free agricultural land ownership titles to landless laborers across all states.
D. To offer universal basic income cash transfers directly to urban migrant workers.

💡 Solution & Explanation

Enacted in 2005, the Mahatma Gandhi National Rural Employment Guarantee Act guarantees legal right to employment by ensuring at least one hundred days of unskilled manual labor per rural household annually, thereby bolstering rural livelihoods and mitigating distress migration. Gram panchayats play a central role in planning and executing approved works, focusing on water conservation, drought proofing, and rural infrastructure. Wage payments are directly credited to beneficiary bank accounts through direct benefit transfer mechanisms to minimize leakages. The statute emphasizes transparency through mandatory social audits.

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