Bare ActsThe Mahatma Gandhi National Rural Employment Guarantee Act, 2005

Section 5

Release of grants from the Fund to the State Governments and Union Territory Administrations

Amendment status not verified — confirm the current text below against the official source.

Release of grants from the Fund to the State Governments and Union Territory Administrations.-(1) Before the beginning of each financial year on or before 31st January, all Secretaries of the State Governments and Union ~ territories concerned with the implementation of the Act and the State Employment Guarantee Schemes shall present their annual work plan and labour budget to the Ministry of Rural Development. (2) The State Governments and Union territories may also in their annual work plan and labour budget submit proposals for any work other than those specified in Schedule I of the Act (3) The Ministry of Rural Development may examine the proposals received by it on or before the 31st of January of each financial year and review the performance of the States and Union territories with respect to the imple111entation of the Act and estimate the amount to be released to the State Governments and Union Territory Administrations from the National Fund. (4) Release of funds to the State Governments and Union Territory Administrations shall be made .in accordance with the directions issued by the Ministry of Rural Development from time to time. (5) The Ministry of Rural Development may, in order to meet emergent needs and to meet the temporary shortage of funds on account of non- completion of prescribed formalities, give advances as it may consider necessary to the districts, States and Union territories pending regular release of ftmds and such advances shall be adjusted against regular releases. (6) The sanctioned amount may be released directly from the National Employment Guarantee Fund to the State Employment Guarantee Fund under sub-section (1) of section 21. (7) The rules for State Employment Guarantee Fund and the fund-flow from State Employment Guarantee Fund to the Districts, Block and Gram Panchayat may be notified by the concerned State Government. (8) The State Employment Guarantee Fund shall be maintained in a separate bank accomlt which shall be non-lapsable. (9) The State Employment or any other authority shall not create any encumbrance on the grants released by the Ministry either through the State Employment Guarantee Fund or directly to the districts or any other agency. (10) The sanctioned amotmt may also be relt:~ased directly from the National Fmld to a separate bank account at the district level for the implementation of · the Act, which shall be non-lapsable. (11) The decision in regard to release of funds shall be taken by the Ministry of Rural Development in consultation with the concerned State Government and Union territory.

Section 5 – The Mahatma Gandhi National Rural Employment Guarantee Act, 2005 | DailyLaw.ai