New Delhi, Feb 22 (IANS) The central cabinet Thursday enhanced the management cost for implementation of National Rural Employment Guarantee Act (NREGA) from the existing level of two percent to four percent of the total cost.

This would enable the implementing agencies to provide additional employment, infrastructure upgradation and skill development to the rural poor. The enhanced amount is also aimed at providing work site facilities to the workers.

The present budget for NREGA is about Rs.125 billion. Of this, the central government has put in Rs.113 billion and the concerned state has to bear 10 percent of the total cost that comes to Rs.12.5 billion. Four percent of the Rs.125-billion budget works out to Rs.5 billion.

No additional funds for the budget for 2006-07 fiscal are needed and the enhanced administrative ceiling will be absorbed within the current year's budget.