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LATEST NEWS UPDATES | Bihar rejects CAG finding, says MGNREGA suffering fund crunch

Bihar rejects CAG finding, says MGNREGA suffering fund crunch

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published Published on Apr 25, 2013   modified Modified on Apr 25, 2013
-PTI


PATNA: Bihar Chief Minister Nitish Kumar today told the Centre that implementation of MGNREGA was suffering due to non-availability of funds even as the state government rejected CAG findings on the ambitious rural job scheme as totally "untrue and deceptive".

"I have recently reviewed the implementation of MGNREGA in the state and it has been noticed that progress of implementation is suffering due to non-availability of funds," Kumar said in a letter written to Union Rural Development Minister Jairam Ramesh.

The CM cited certain instances to drive home the point. "It is alarming to note that during the year 2012-13, in spite of the approval of the labour budget by Ministry of Rural Development, not a single regular instalment has been released to the state," he said.

Ministry of Rural development had approved a labour budget of Rs 3,44,645 lakh. As per provision, 50 per cent is required to be released as first instalment but so far only two adhoc release of Rs 700 crore and Rs 234 crore has been made, he told Ramesh.

On 14th January, the state government had sent a proposal for release of Rs 1000 crores in view of the liabilities and requirements for the remaining period of the current financial year.

"It has been reported that only Rs 50 crore is being released by the Union Rural Development ministry," the Bihar CM added.

Highlighting a grim situation, he pointed out that 2167 gram panchayats out of 8442 gram panchayats have less than Rs one lakh left. The state government has already put in state resources to the tune of Rs 462 crore as advance to bridge the gap, he said.

Kumar urged Ramesh to intervene in the matter and release at least Rs 1000 crore immediately to Bihar.

Meanwhile, the state government today disputed the CAG report on MNGREGA, presented in Parliament yesterday, which indicated that only 20 per cent of the central resources were utilised in Bihar. "This is totally untrue and deceptive," Bihar Rural Development Minister Nitish Mishra said in a statement.

Mishra noted that the report said that between 2007 to 2012, the Central government made available a sum of Rs 6292.44 crore to Bihar whereas Rs 8110.84 crore was spent in the state during the period. "This is enough to show that the state spent more money than provided by the Centre under MGNREGA scheme during the period," the minister said.

Mishra said that a comparative study of states in the CAG report reveal that implementation of MGNREGA programme in Bihar was relatively satisfactory and irregularities were also low.

Out of the 38 districts in Bihar, 23 districts were covered under MGNREGA in the first phase (from February 2006) and the remaining 15 districts from April 1, 2007 onwards. Primarily an agrarian state, rural population forms 88.20 per cent of the total population of Bihar.


The Economic Times, 24 April, 2013, http://economictimes.indiatimes.com/news/politics-and-nation/bihar-rejects-cag-finding-says-mgnrega-suffering-fund-crunch/articleshow/19712936.cms


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