What are scheme’s major objectives?The Mahatma Gandhi National Rural Employment Guarantee Act, 2005, guarantees 100 days of employment in a fiscal to adults in rural households willing to undertake unskilled labour.
This is based on the principles of the Keynesian theory that during a downturn, governments can help generate employment and push demand by putting money in people’s hands.
The scheme, which aims to generate employment and build infrastructure, ensures that productive economic activities are undertaken.
Over the years, governments have interwoven the scheme with technology and increased it’s efficiency.How does the scheme benefit the economy?The Indian economy is known to be domestic consumption-led: 80% of the gross domestic.