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LATEST NEWS UPDATES | 40% MGNREGA wage payments for April, May still pending -Priscilla Jebaraj

40% MGNREGA wage payments for April, May still pending -Priscilla Jebaraj

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published Published on Jun 1, 2021   modified Modified on Jun 1, 2021

-The Hindu

Centre taking 26 days to clear payment orders generated by States: study

Almost 14% of MGNREGA wage payments from April are still pending more than a month later, while 60% of May payments are also pending, according to scheme data. A recent study of the MGNREGA wage transactions in Jharkhand shows that while the States are generating fund transfer orders without delays, it is the Centre which is dragging its feet in making payments, taking three times longer than it should.

However, although Tamil Nadu has one of the highest rates of wage payment pendency according to the scheme’s Management Information System (MIS) data, the State’s rural development officials say the information has simply not been updated.

The lifeline

At a time when rural India is facing the brunt of the second wave of the pandemic, with the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) acting as a lifeline for those losing livelihoods and facing increased health expenses, activists say delayed wage payments are unconscionable.

The MGNREGA payment process consists of two stages. In the first stage, once the work is completed, a Fund Transfer Order (FTO) is generated by the State and digitally sent to the Centre. In the second stage, the Centre processes the FTOs and transfers wages directly to the workers’ accounts. According to the scheme’s guidelines, Stage 1 must be completed in 8 days and Stage 2 must be completed within 7 days after that. Thus, a worker should expect to get paid 15 days after the closure of a muster of work.

MIS data show that, as on May 30, of the 6.4 crore wage payment transactions whose FTOs were generated in April and May, more than 2.5 crore, or 40% were still pending. The MGNREGA website showed that 99% of FTOs in these two months had been generated within 15 days of work being complete, indicating that State governments had not caused the major delays.

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The Hindu, 1 June, 2021, https://www.thehindu.com/news/national/40-mgnrega-wage-payments-for-april-may-still-pending/article34693578.ece?homepage=true


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