JGSY is dedicated entirely to the development of rural infrastructure at the village level and to be implemented by the village panchayats. Village panchayat will have the sole authority for preparation of annual action plans and their implementation including the power to execute works with the approval of gramsabha. This programme will also provide for special work to be taken up for the benefit of weeker section of the society.

The primary objective of the yojana is to create demand driven community village infrastructure including durale assests at village level and assests to enable the rural poor to increase the opportunities for sustained employment. The secondary objective is to generate supplementary employment for the unemployed poor in the rural areas.The programme will be implemented as a centrally sponsored scheme on cost sharing basis between the centre and the state in the ration of 75:25. 25% of the annual allocation will be earmarked for SC's and ST's individually beneficiary schemes as a special safe gaurds for the weeker section of the community.

All works that result in creation of durable productive community assests can be taken up under the programme as per the felt need of the area/people by the village panchayat.Priority shall be given in the following order

                                                        Report of Progress 2001-2002