Government Releases Rs. 12,000 Crore for MGNREGS

After SC rap, government releases Rs 12,000 crore for MGNREGS

NEW DELHI: Under pressure from the Supreme Court, the government on Saturday announced release of Rs 12,230 crore to the states that will take care of pending wage liability for 2015-16 under MGNREGS.

With SC observing that the needy require employment guarantee wages without delay, the rural development ministry said it is committed to ensure adequate funds to meet the programme objectives.

The ministry also said it has decided to maintain a 60:40 wage-material ratio at the district level to ensure creation of good quality assets in rural areas. The decision was criticised by some activists on the ground that it will allow a 100% labour or material component in panchayats within a district, which changes the nature of MGNREGS.

Government sources maintained the flexibility was essential as restricting 

spending options could make the scheme inefficient. 

The government has rejigged MGNREGS rules, arguing that a model cannot be static and that previous studies have shown while the scheme is much needed, its rules resulted in non-productive work. Former rural development minister Jairam Ramesh had admitted that the scheme had become an exercise in ditch-digging.

Rural minister Birender Singh rebutted reports that arrears of Rs 8,000 crore had piled up for the 2015-16 financial year. The year has seen the highest MGNREGS expenditure at Rs 41,371 crore of which Rs 30, 139 crore went towards wages.

"The highest employment generation over the past three years and the best achievement on key parameters such as works undertaken, women's participation at 55% and 95% payments through electronic fund management had been recorded," the minister said.