Centre’s NREGA allocation shows dip

May 03, 2012 - MANISH ANAND |

New Delhi

The UPA’s flagship Mahatma Gandhi National Rural Employment Guarantee scheme (MGNREGA) appears to be losing its sheen, as the Centre could release about `29,190 crores against the budgetary allocation of `40,000 crores during the just-concluded financial year, showing a dip of more than 25 per cent. Even in the job demands under the flagship scheme, the data suggest more than 20 per cent decline.

Union finance minister Pranab Mukherjee has allocated `32,000 crores for MGNREGA in the financial year 2012-13. While Union rural development minister Jairam Ramesh is of the view that the MGNREGA, being a demand-driven scheme, funds would not be constrained and also considers that it’s a good thing that there is less job demand.
However, the officials claim that MGNREGA is losing the sheen primarily for twin reasons, delay in wage payment and robust demands in the construction sector.
“It’s a fact that the wage payment is more often getting delayed, which frustrates job-seekers under the MGNREGA. The banking correspondent model to ensure timely payment to the MGNREGA workers has not taken off. There are wage payment delays to the extent of three months,” said a senior official of the ministry of rural development.
Another reason, the official added, is the failure of the MGNREGA wages to match up with what is being offered by the construction sector where the labourers are being taken on contract for over six months period.
“They are getting better wages in the construction sector without any delay due to which migration is taking place to the urban centres,” he said.
Uttar Pradesh tops the list of states having got `4,240 crores, followed by Madhya Pradesh with `2,968 crores and Tamil Nadu with `2,815 crores.
At the same time, it’s also being seen that the declining popularity of MGNREGA is also due to the fact that the state governments are now taking action on allegations of irregularities in the implementation of the flagship scheme, which is being audited by the Comptroller and Auditor General (CAG).

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