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Which scheme funds are being released directly to the Gram Panchayat accounts?

a. Mahatma Gandhi National Rural Employment Guarantee Scheme (Material Component)

b. National Rural Health Mission

c. 14th Finance Commission Funds

d. NTR Grameena Gruha Nirman


1. a, b and c
2. a, c and d
3. b, c and d
4. a, b, c and d

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Correct Answer - Option 1 : a, b and c

The correct answer is a, b and c.

  • Mahatma Gandhi National Rural Employment Guarantee Scheme (Material Component):
    • The National Rural Employment Guarantee Bill was passed by Parliament on September 7, 2005.
    • The Act provides for at least 100 days of employment to one able-bodied person in every rural household every year.
    • Employment to be given within 15 days of application for work.
    • If employment is not provided within 15 days, a daily unemployment allowance in cash has to be paid.
    • At least one-third of beneficiaries have to be women.
    • PRIs have a principal role in planning and implementation. Hence, statement a is correct.
    • The wages admissible are around 120 per day.
    • The Act (NREGA) came into force on Feb. 2, 2006.
  • National Rural Health Mission (NRHM, launched in 2005)
    • The National Rural Health Mission (NRHM) was launched on 12th April 2005.
    • It aims to provide accessible, affordable and accountable quality health services to the rural poor.
    • The funds are released directly to the Gram Panchayat accounts. Hence, statement b is correct.
  • 14th Finance Commission Grants:
    • The objective of the funds is to augment the consolidated funds of the state to supplement the resources of local bodies (Panchayat & Municipalities) and recommend Grant-in-Aid under Article 275 of Constitutions of India.
    • The act has provisions for the assured transfers of funds to the local bodies for planning and delivering basic services smoothly and effectively within the functions assigned to them under relevant legislation. Hence, statement c is correct.

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