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LATEST NEWS UPDATES | Centre mandates state social audit for NREGS by Devika Banerji

Centre mandates state social audit for NREGS by Devika Banerji

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published Published on Jul 9, 2011   modified Modified on Jul 9, 2011

The government will set up statelevel independent bodies to carry out financial and social audits of its flagship rural employment guarantee programme, which critics say is riddled with corruption. The rural development ministry will also make it mandatory for state governments to submit a report on the social audit, which unlike other government audits, allows beneficiaries of the scheme to register complaints.

The move to increase transparency in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and give beneficiaries a greater say in its functioning follows reports of embezzlement of funds allocated for the programme in Orissa and Jharkhand. The Supreme Court has already ordered a probe by federal investigators.

MGNREGS guarantees 100 days of work a year for rural households . It is largest of the government's welfare schemes, costing 1% of GDP, and credited for winning the Congress-led coalition a second term at the Centre. The state-level audit body, to be called directorate of state, will be headed by the Comptroller Auditor General of India (CAG) and have representatives from state governments , chartered accountants, and village-level officials. The groundwork will primarily be done by non-government organizations and grassroots-level activists . "The entire NREGA audit structure will be headed by CAG. The big move is that an independent audit body, which will constitute various stakeholders, will now do social audits," said an official in the ministry of rural development. "Earlier, social audits were the exclusive domain of Sarpanchs of Gram Sabhas," he added.

The government has also deleted para 13(b) of Schedule 1 of the NREGA - an amendment that prevented intervention of "outsiders" or grassroots-level activists in social audits, leaving the audits in control of Gram Sabhas and the local administration. "There has been a lot of opposition to the amendment and the government has recognised them and the move has been taken as a necessary step to enhance transparency in the system," the official said. United Progressive Alliance ( UPA )) chairperson Sonia Gandhi has suggested that social audits be extended to all welfare schemes. Civil society organizations like the Mazdoor Kisan Shakti Sangathan (MKSS) have welcomed the move. "This is a very significant step and we welcome it.

The significance lies in the fact that social audit has been elevated and recognised as a branch of audit as a whole. This will facilitate spread of social audits in the country," said Nikhil Dey, a rights activist with MKSS. The social audit structure is based on that in Andhra Pradesh, where it has boosted the scheme's efficiency. According to the government's guidelines, funds for establishing directorate of audit and carrying out the audit will be provided by the Centre. States will only have to facilitate the audits every six months.

"The only thing is that this is the first time any country is trying it. We are in a phase of learning, and what might work in one state or district might not work in another . However, by and large it a positive step," Dey added. The proposal for a social audit for MGNREGS gathered pace after October 2009, when a similar audit in Bhilwara district of Rajasthan revealed corruption. The rural development ministry tried making social audits mandatory in all districts of Rajasthan , but faced resistance from Sarpanchs. Under pressure from panchayats and state governments , the Centre then introduced the amendment in the NREGA, restricting outsiders from participating in social audits conducted by the Gram Sabhas and making Sarpanchs accountable for their own work.

The Economic Times, 9 July, 2011, http://economictimes.indiatimes.com/news/economy/policy/centre-mandates-state-social-audit-for-nregs/articleshow/9158703.cms


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