Government releases Rs 12,230 crore for MNREGA

The government on Saturday released its share of funds to the tune of Rs 12,230 crore to the states for the rural job flagship scheme MGNREGA, days after the Supreme Court pulled it up for not releasing adequate funds. In a parallel development, the Centre also decided to continue with a 60:40 wage-material ratio for the scheme now at the district level instead of the panchayat level as was the case earlier even as the move drew flak from activists.

Sources said that this is the biggest amount for the scheme released in one go by the ministry.

Rural development minister Birender Singh underlined that this fund release will take care of the pending wage liability of the states for the previous financial year (2015-16) and help the states to run the programme during the new financial year (2016-17). He said the government is committed to ensuring flow of adequate resources for fulfilling the programme objectives.

The Supreme Court had on Wednesday pulled up the Centre for not releasing adequate funds to states for MGNREGA and asked it to give details of expenditure on the scheme in drought-hit states, saying relief has to be provided now and not after one year. The minister said his ministry has brought large-scale reforms in the implementation of the programme in such a manner that it is oriented more towards combating agrarian distress and meet the demand for work in drought-affected areas, creating durable and income-generating assets mostly linked to augmentation of irrigation potential.

“In the year 2015-16, states were asked to provide employment where needed, particularly drought-affected areas, with the assurance of making required resources available. The ministry expanded the entitlement from 100 to 150 days of work to households in drought-affected regions of 10 states. 20.48 lakh households in these regions have availed this opportunity and completed more than 100 days of work. At the national level, 44 lakh households have completed 100 days,” Mr Singh said in the statement.

Meanwhile, the Centre said it has decided to maintain a 60:40 wage-material ratio at the district level instead of the panchayat level. According to sources, the understanding in the government is that while some panchayats may require intensive labour-oriented work, there may be some others where asset creation has to be prioritised. Hence, computation of the wage-material ratio at the district level will facilitate both. There was a controversy in 2014 when then rural development minister Nitin Gadkari had announced that the government will increase the proportion of the material component in the scheme to up to 49 per cent to enable creation of large, durable assets, like check dams, etc.