"The Union cabinet has decided to rechristen NREGA as Mahatma Gandhi Rural Employment Guarantee Act," Prime Minister Manmohan Singh told a gathering of heads of villages to commemorate the 50th anniversary of the launching of Panchayati Raj.

Singh said the scheme has been aptly named after the Father of the Nation as he had always held the concept of Gram Swaraj in high esteem.

The government's decision comes amid reports that several opposition ruled states have been taking credit for the central scheme.

"Several states have still not provided adequate funds, functions and functionaries to Panchayati Raj Institutions (PRIs). This system needs to be changed," Singh said in the presence of UPA chairperson Sonia Gandhi.

She said, "if Dalits, tribals, poor and more than 12 lakh women (elected representatives in Panchayats) have today got the opportunity to raise their voice, it is all because of Rajiv Gandhi's family."

The Union cabinet has recently cleared a proposal to amend the Constitution to provide 50 per cent reservation to women in Panchayats.