MGNREGA: Cabinet clears direct release of wages

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The decision effectively means that there will be no advance release of funds any longer. The fund release will match the expenditure on a daily basis, thus meaning no surplus or deficit. Accordingly, the funds will then flow electronically directly into the worker’s accounts. This will help eliminate delays in wage payments as well as unnecessary parking of funds.

The move essentially is aimed at further streamlining the fund flow system and to empower the state governments or grassroots implementation agencies to deliver entitlements as per the objectives of the Act, government sources said. The system is expected to benefit all stakeholders and improve the overall efficiency of the scheme.