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LATEST NEWS UPDATES | Expanded National Rural Employment Guarantee Act to arrest fall in appeal

Expanded National Rural Employment Guarantee Act to arrest fall in appeal

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published Published on Feb 23, 2012   modified Modified on Feb 23, 2012
-The Economic Times
 
An expert group has recommended adding 30 agricultural and allied works under the Centre's flagship rural job guarantee scheme, in a revamp aimed at making the country's costliest social sector programme more effective. 

As part of the overhaul of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), the panel has also suggested an electronic fund management system to ensure timely transfer of money to needy districts. 

The recommendations of the committee, headed by planning commission member Mihir Shah, were accepted by minister for rural development Jairam Ramesh on Wednesday. The minister said that the reforms will be implemented from the next financial year. 

"The need of the hour is to allow largest possible works, which will help strengthen the synergy between MGNREGA and agriculture without compromising on the fundamental features of the Act," Ramesh said while accepting the report. 

MGNREGS, which entitles millions of workers enrolled under it to at least 100 a day for 100 days of work in a year, is undergoing an overhaul as the ministry feels that the scheme has underachieved due to a rise in corruption, poor asset creation and human resource constraints over the last two years. 

The programme, brought in by the Congress party-led United Progressive Alliance in 2005, has a budget allocation of 40,000 crore. 

The new activities proposed for inclusion include rice cultivation using the system of rice intensification (SRI), soil conservation activities, production of manure and bio pesticides, construction of seed-storage bins and shelters for cattle and poultry. 

Also included are developmental works such as rural water supply and sanitation, besides area-focused activities like fish drying yards and storm water drains for coastal areas. 

The revamp is also seen countering criticism from the agriculture ministry, which had sought a ban on MGNREGA works during peak farming seasons saying it was causing shortage of labour. 

The expert group is also looking at checking payment delays, an issue widely seen as undermining rural support. 

"Corruption and delayed payments of wages are problems that arise from the vast nature and scale of the programme," Ramesh added. 

The committee has suggested that all payments under MGNREGA be made within 15 days and interim payments be allowed in cases where measurement of work has not been finished. Delay in payment should be considered a punishable offense under section 25 of the Act, the panel has suggested. 

The expert group's report points to lopsided availability of funds as an important reason for delay or non-payment of wages is. The recommended electronic fund management system would allow users at all levels-panchayats, blocks and districts- to access an integrated pool of state funds as per requirement. 

"The basic focus of the revamp is to make sure that MGNREGA leads to a planned creation of viable rural assets, check corruption and is demand driven in the truest sense of the term," Shah said. 

Other recommendations of the committee include ways to better plan labour budgets and assets under the scheme, mandatory issuance of receipt when work is demanded, strengthening of the online monitoring system and development of human resource at the grassroots level.

The Economic Times, 23 February, 2012, http://economictimes.indiatimes.com/news/economy/policy/expanded-national-rural-employment-guarantee-act-to-arrest-fall-in-appeal/articleshow/11998606.cms


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