The Act guarantees 125 days of wage employment in a financial year to every rural household whose adult members volunteer for unskilled manual work. This is a direct enhancement from the 100 days guaranteed under the previous MGNREGA, providing a longer period of income security.

It establishes a legal 'right to work' for rural households. If work is not provided within 15 days of applying, the applicant is entitled to an unemployment allowance, ensuring accountability from the administration.

The scheme emphasizes 'Ajeevika' (livelihood) beyond just 'Rozgar' (employment). This means the focus is on creating durable assets that support sustainable income generation, such as farm ponds, irrigation channels, or rural connectivity, rather than just temporary work.

The funding pattern mandates a Centre-State sharing model, where States are required to bear 40% of the scheme's expenditure. This ensures shared responsibility and financial commitment from state governments, though it can sometimes lead to implementation delays if state funds are tight.

There are specific relaxations in the funding pattern for northeastern and hilly regions, where the Centre's share is higher. This acknowledges the unique geographical and economic challenges faced by these areas, ensuring equitable support.

Wages must be paid within 15 days of the completion of work. Any delay beyond this period will result in compensation to the workers, which is a critical provision to prevent exploitation and ensure timely income for families.

The Act mandates at least one-third of the beneficiaries to be women. This provision is crucial for promoting gender equality, empowering rural women financially, and ensuring their participation in community development.

Mandatory social audits are a cornerstone of this Act, requiring regular public verification of all works and expenditures. This mechanism enhances transparency, reduces corruption, and ensures that funds are utilized effectively for their intended purpose.

Gram Panchayats play a central role in planning, identifying works, and implementing the scheme at the grassroots level. This decentralization ensures that local needs are met and community participation is fostered, making the scheme more responsive.

The Act promotes convergence with other government schemes, such as those for skill development, agriculture, or sanitation. This integrated approach aims to maximize the impact of resources and create more holistic rural development outcomes.

For UPSC, examiners often test the comparison between this Act and MGNREGA, focusing on the increased days of work, the 'livelihood' aspect, the funding pattern, and its implications for fiscal federalism and rural poverty alleviation.

The Act guarantees 125 days of wage employment in a financial year to every rural household whose adult members volunteer for unskilled manual work. This is a direct enhancement from the 100 days guaranteed under the previous MGNREGA, providing a longer period of income security.

It establishes a legal 'right to work' for rural households. If work is not provided within 15 days of applying, the applicant is entitled to an unemployment allowance, ensuring accountability from the administration.

The scheme emphasizes 'Ajeevika' (livelihood) beyond just 'Rozgar' (employment). This means the focus is on creating durable assets that support sustainable income generation, such as farm ponds, irrigation channels, or rural connectivity, rather than just temporary work.

The funding pattern mandates a Centre-State sharing model, where States are required to bear 40% of the scheme's expenditure. This ensures shared responsibility and financial commitment from state governments, though it can sometimes lead to implementation delays if state funds are tight.

There are specific relaxations in the funding pattern for northeastern and hilly regions, where the Centre's share is higher. This acknowledges the unique geographical and economic challenges faced by these areas, ensuring equitable support.

Wages must be paid within 15 days of the completion of work. Any delay beyond this period will result in compensation to the workers, which is a critical provision to prevent exploitation and ensure timely income for families.

The Act mandates at least one-third of the beneficiaries to be women. This provision is crucial for promoting gender equality, empowering rural women financially, and ensuring their participation in community development.

Mandatory social audits are a cornerstone of this Act, requiring regular public verification of all works and expenditures. This mechanism enhances transparency, reduces corruption, and ensures that funds are utilized effectively for their intended purpose.

Gram Panchayats play a central role in planning, identifying works, and implementing the scheme at the grassroots level. This decentralization ensures that local needs are met and community participation is fostered, making the scheme more responsive.

The Act promotes convergence with other government schemes, such as those for skill development, agriculture, or sanitation. This integrated approach aims to maximize the impact of resources and create more holistic rural development outcomes.

For UPSC, examiners often test the comparison between this Act and MGNREGA, focusing on the increased days of work, the 'livelihood' aspect, the funding pattern, and its implications for fiscal federalism and rural poverty alleviation.