R.1 Short title and commencement.

       These rules may be called the National Employment Guarantee Fund Rules, 2006.
       (2) They shall come into force on the date of their publication in the Official Gazette.
       
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        1. Vide G.S.R. 3(E), dated 2nd January, 2007, published in the Gazette of India, Extra., Pt. II, Sec. 3(i), dated 3rd January, 2007.

R.2 Definitions.

       In these rules, unless the context otherwise requires,—
        (a) “Act” means the National Rural Employment Guarantee Act, 2005 (42 of 2005);
        (b) “Central Government” means Central Government in the Ministry of Rural Development;
        (c) “National Fund” means the National Employment Guarantee Fund established under sub-section (1) of section 20;
        (d) all other words and expressions used herein and not defined but defined in the Act shall have the meanings respectively assigned to them in the Act.

R.3 Account of the National Fund.

       The National Fund shall be maintained by the Central Government in a Public Account.

R.4 Usage of the National Fund.

       The National Fund shall be used by the Central Government to meet the Central Government share of expenditure on implementation of the Act including the grants to the State Governments and Union territories and the expenses of the Central Employment Guarantee Council.

R.5 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 implementation of the Act and estimate the amount to be released to the State Governments and Union Territory Administrations f

R.6 Release of grants from the National Fund to the Central Employment Guarantee Council.

       1) The Central Employment Guarantee Council shall be given a grant every year with an initial corpus of five crores of rupees in order to meet the expenses in connection with the functions assigned to the Council.
       (2) The Council shall maintain a bank account in a Scheduled Bank for the funds so given.
       (3) The grants shall be given to the Council after audit report for the previous year and the utilization certificate for at least sixty per cent. of the amount already released are furnished.

R.7 Balance budgeted grant.

       The balance budgeted grant of each financial year shall be transferred to the National Fund before the close of the financial year and shall constitute the reserve in the National Fund.

R.8 Audit.

       The grants released from the National Fund to the State Governments and Union Territory Administrations shall be audited by the Comptroller and Auditor-General through respective Accountant-Generals. The internal audit shall be done on behalf of the Head of the Department (Secretary) to the Government of India and shall be supervised and monitored by the office of Chief Controller of Accounts.