Cag Report on Mgnrega

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CAG report on MGNREGA Jan 13, 2014

An audit report of the Mahatma Gandhi National Rural Employment Guarantee Scheme

(MGNREGS) has slammed the State government for non-performance and poor maintenance

of records in implementing the scheme from 2007 to 2012.

The performance audit report of the Mahatma Gandhi National Rural Employment Guarantee

Act (MGNREGA) has shown significant decline in per rural household employment generation

n the last two years. MGNREGA was enacted with the objective of enhancing livelihood securityn rural areas by providing at least 100 days of guaranteed wage employment in a financial

year, to every household whose adult members volunteer to do unskilled manual work. The Act

nitially came into force in 200 districts with effect from 2 February 2006 and was extended to

cover all the rural districts by 1 April 2008.

CAG conducted door-to-door survey to identify persons willing to register under the MGNREGS

was not conducted in 39 grama panchayats and tampering with muster rolls was noticed in all

grama panchayats in Thiruvananthapuram. Delay in wage payment from 23 to 138 days was

reported in all grama panchayats. Besides, payment of Rs.12.86 lakh was made withoutmeasuring the works and wage slips were not generated in 37 of the 39 grama panchayats.

Details of the wages paid were not recorded on the job card at most of the grama panchayats,.

Significant irregularities are:

a) The per rural household employment has declined from 54 days in 2009-10 to 43 days in

2011-12.

b) There is a substantial decline in the proportion of works completed in 2011-12. The works

amounting to around Rs 4,070 crore were incomplete even after one to five years of launching.

It points to impermissible works undertaken to the tune of about Rs 2,252 crore.

c) The audit report also observes that Bihar, Maharashtra and Uttar Pradesh which constituted

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46 per cent of the rural poor utilised only 20 per cent of the total funds released under the

Scheme. This indicated that the correlation between poverty levels and implementation of

MGNREGA was not very high, the report states.

d) The CAG audit blames the ministry for relaxing all conditionalities and releasing a sum of Rs

1,960.45 crore in March, 2011 to the states, contravening norms of financial accountability. An

amount of Rs 4,072.99 crore was released by the ministry during 2008-12 to states for use in

the subsequent financial year, in contravention of budgetary provisions and General Financial

Rules, the report states.

e) The highest number of ghost workers - workers who exist only on paper - was found in

Karnataka, while misappropriation of funds was highest in Assam.

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