The union cabinet on Wednesday approved the direct release of wages to workers under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme to increase overall efficiency in its implementation.
Sources said the decision will benefit all stakeholders and workers will be assured of payment of wages on the second day of the pay order generation.
The cabinet meeting was chaired by Prime Minister Narendra Modi.
Sources said that despite implementation of the electronic Fund Management System (e-FMS) earlier, delays were recorded in the release of funds.
They said that following the decision, gram panchayats will be empowered to take up work according to the agreed labour budget without struggling for the release of funds.
Sources said the Centre will gain by releasing what is actually expended and there will be greater transparency in the movement of funds and lesser corruption.
MGNREGA aims at enhancing the livelihood security of the people in rural areas by guaranteeing 100 days of employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work.