Fund crisis has hit rural job scheme, says minister

At a time when demand for work under the rural employment guarantee scheme has shot up in many states due to drought, the Centre has said the flagship scheme was facing a liquidity crunch and more funds were required to run the programme.

The Centre has already announced that the additional employment over and above 100 days per household up to 150 days in notified drought-affected districts in various states.

Union rural development minister Narendra Singh Tomar said additional funds are required for providing wages under MNREGA in the coming days. The scheme is facing a liquidity crunch and requires funds despite the highest ever budgetary allocation to the programme this year.

He said that additional funds were needed in the coming days as works for water conservation were being carried out on a large scale under MNREGA.

“Rs 38,500 crore was allocated for MNREGA in the Budget, which is the highest ever allocation for the rural employment guarantee scheme. In addition to that Rs 5,000 was given in the first supplementary,” Mr Tomar said. A senior official in the rural development ministry said the Centre has cleared around Rs 12,581 crore outstanding MNREGA dues of the last year.

However, for smooth operations of the programme this year, the ministry has sought additional Rs 10,000 crore over and above the budgetary allocation.

The landmark Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) was launched by the UPA in 2006. It is a demand-driven wage employment programme which has to provide not less than 100 days of employment to registered workers upon receipt of their demand.

The programme was aimed at providing a supplementary means of livelihood for rural people, primarily during lean periods and is not a substitute for all other employment opportunities.

The Congress party has alleged that the NDA government was stifling the scheme by drying up funds.

Assets created under MNREGA include, works related to natural resource management like water conservation, land development, irrigation. Besides these, dams, irrigation channels, check dams, ponds, wells, anganwadi assets are also constructed under this scheme.

The centre has also roped in MNREGA for construction of toilets under the Swachch Bharat MIssion.