(1) The Scheme implemented under this Act shall be a Centrally Sponsored Scheme.
(2) For the purposes of this Act, the fund sharing pattern between the Central Government and the State Governments shall be 90:10 for the North Eastern States, Himalayan States and Union territory (Uttarakhand, Himachal Pradesh and Jammu and Kashmir) and 60:40 for all other States and Union territories with legislature.
(3) For the Union territories without legislature, the Central Government shall bear the entire expenses of the Scheme in the manner as may be prescribed by the Central Government.
(4) The Central Government shall determine the State-wise normative allocation for each financial year, based on objective parameters as may be prescribed by the Central Government.
(5) Any expenditure incurred by a State in excess of its normative allocation shall be borne by the State Government in such manner and procedure as may be prescribed by the Central Government.
(6) In accordance with the State-wise normative allocation determined under this Act, the share of the Central Government shall include expenditure towards---
(a) payment of wages for unskilled, semi-skilled and skilled labour employed under the Scheme;
(b) the material component of works, subject to the provisions in Schedule I;
(c) such administrative expenses as may be specified by the Central Government, including salary and allowances of Programme Officers and supporting staff, administrative expenses of the Central Council, facilities required under Schedule II, and such other items as may be prescribed by the Central Government.
(7) In accordance with the State-wise normative allocation determined under this Act, the share of the State Government shall include expenditure towards---
(a) payment of wages for unskilled, semi-skilled and skilled labour employed under the Scheme;
(b) the material component of works, subject to the provisions in Schedule I;
(c) such administrative expenses as may be specified by the Central Government, including salary and allowances of Programme Officers and supporting staff, administrative expenses of the State Council, facilities required under Schedule II, and such other items as may be prescribed by the Central Government.
(8) The State Government, shall bear the expenditure towards unemployment allowance and delay compensation as may be prescribed by the State Government.