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LATEST NEWS UPDATES | CAG to audit NREGA work in top 12 fund-recipient states

CAG to audit NREGA work in top 12 fund-recipient states

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published Published on Nov 6, 2011   modified Modified on Nov 6, 2011

-The Economic Times

 

The Centre's flagship rural employment programme will soon come under the scrutiny of the national auditor, which will look into its implementation in the 12 states that receive the largest share of funds.

The Comptroller and Auditor General of India will scrutinise the expenditure and outcome of the public works initiated under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in these states over the past five years.

The performance audit will be the first in a series that will cover all programmes under the ministries of rural development and drinking water & sanitation.

Announcing the audits, Jairam Ramesh, who heads both ministries, said the two ministries account for the biggest public expenditure after defence, at Rs 88,000 crore annually. "This is a very essential step for ensuring accountability of public expenditure. We are sending a message that we are serious about it. Laxity in accountability and transparency will not be tolerated," he said.

MGNREGS, the centre's largest social welfare programme with an annual outlay of Rs 40,000 crore, has been marred by poor implementation and allegations of massive corruption at the ground level.

Assam, Andhra Pradesh, Bihar, Chhattisgarh, West Bengal, Orissa and Uttar Pradesh are among the states which will come under the CAG scanner in the first phase. All implementing agencies, including panchayats and independent bodies in these states, will come under the purview of the audit body.

Ramesh clarified, however, that the idea is not to stop the flow of funds to the states where the auditor points out irregularities because this will hurt the interests of the intended beneficiaries. "I do not believe in stopping the flow of money," he said, adding that the idea is to instead increase the partnership between the centre and the states.

Though the CAG had conducted an audit of the scheme in 2008 for a period of one financial year, its observations had a limited impact because the scheme was yet to pick up in several states.

The ministry has also appointed an expert committee to prepare, in consultation with the CAG, a common accounting format for all rural development schemes to enhance transparency and facilitate monitoring.

The new accounting format, likely to be in place within four months, will bring the centre, the states and the panchayats at the same accounting platform.

The rural development ministry's decision to throw all its schemes open to the CAG comes at a time when the centre has questioned several of the auditor's observations, most recently in audits of KG D6 and Air India for example.

The Economic Times, 7 November, 2011, http://economictimes.indiatimes.com/news/economy/policy/cag-to-audit-nrega-work-in-top-12-fund-recipient-states/articleshow/10636015.cms


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