Jun 19 2014 : The Economic Times (Delhi)
Ministry wants States to Spend 60% NREGA Money on Agri Infra
YOGIMA SETH SHARMA
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NEW DELHI
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In a major revamp of the employment guarantee scheme, the ministry of rural development has proposed to make it mandatory for states to spend at least 60% of the MGNREGA money on creating infrastructure linked to agriculture. This is expected to bring at least .`25,000 crore of investment into agriculture, a senior government official told ET.
As part of the amendments proposed in the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the ministry will delegate funds at the district level so that larger works like creation of minor irrigation structures could be undertaken besides providing for a dedicated fund equivalent to 3% of the MGNREGA money to recruit technical manpower who will guide in planning and execution of works under the scheme, the official said.
“The government feels that the scheme needs to be more outcome oriented on all fronts, be it creating quality assets or payment of wag
es,” the official said.MGNREGA, a flagship scheme of the UPA government, was implemented in 2006. It promises 100 days of work in a year to every rural household. However, the scheme has drawn a lot of criticism for poor quality of assets being created and delay in wage payments, which has defeated the purpose of the scheme.
The Narendra Modi-led government had indicated that the scheme would have to undergo changes and focus more on asset creation in rural India.The annual spend on MGNREGA is .
`41,000 crore with the Centre contributing .
`34,000 crore and the rest coming from states as well as through convergence between MGNREGA and other schemes,
though this is miniscule as of now.Out of the wage material ratio of 60:40, barely 28% is utilised in the material component under the scheme against the allotted 40%. The ministry estimates that these unutilised funds of 12% at the district level will fetch approximately .
`8,000 crore that can then be utilised to create bigger assets.
As per the proposal sent to states, the ministry has already moved a note to the department of expenditure seeking approval to set aside .
`1,200 crore for hiring technical staff who would guide in the planning and execution of MGNREGA works.
To address leakages in implementation and delay in payments, the ministry has also proposed to come up with a mechanism than will ensure that social audits of the scheme are carried out as per rules and there is effective implementation of the provisions of the delay compensation system.
Under the scheme’s compensation clause, agencies responsible for the delay are expected to pay 0.05% of wages per day after closure of muster roll.
As part of the amendments proposed in the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the ministry will delegate funds at the district level so that larger works like creation of minor irrigation structures could be undertaken besides providing for a dedicated fund equivalent to 3% of the MGNREGA money to recruit technical manpower who will guide in planning and execution of works under the scheme, the official said.
“The government feels that the scheme needs to be more outcome oriented on all fronts, be it creating quality assets or payment of wag
es,” the official said.MGNREGA, a flagship scheme of the UPA government, was implemented in 2006. It promises 100 days of work in a year to every rural household. However, the scheme has drawn a lot of criticism for poor quality of assets being created and delay in wage payments, which has defeated the purpose of the scheme.
The Narendra Modi-led government had indicated that the scheme would have to undergo changes and focus more on asset creation in rural India.The annual spend on MGNREGA is .
`41,000 crore with the Centre contributing .
`34,000 crore and the rest coming from states as well as through convergence between MGNREGA and other schemes,
though this is miniscule as of now.Out of the wage material ratio of 60:40, barely 28% is utilised in the material component under the scheme against the allotted 40%. The ministry estimates that these unutilised funds of 12% at the district level will fetch approximately .
`8,000 crore that can then be utilised to create bigger assets.
As per the proposal sent to states, the ministry has already moved a note to the department of expenditure seeking approval to set aside .
`1,200 crore for hiring technical staff who would guide in the planning and execution of MGNREGA works.
To address leakages in implementation and delay in payments, the ministry has also proposed to come up with a mechanism than will ensure that social audits of the scheme are carried out as per rules and there is effective implementation of the provisions of the delay compensation system.
Under the scheme’s compensation clause, agencies responsible for the delay are expected to pay 0.05% of wages per day after closure of muster roll.
