Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 73
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 73
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 74
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::printArticle() - APP/Controller/ArtileDetailController.php, line 74
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

                trigger_error($message, E_USER_WARNING);

            } else {
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		&#039;title&#039; =&gt; &#039;Govt bullish on MGNREGS, but bearish on funds -Nitin Sethi&#039;,
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-Business Standard&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Centre owes states Rs 5,595 crore for work already completed&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &amp;mdash; 16 per cent of the budgeted funds for the scheme &amp;mdash; causing stress to people, particularly in drought-hit states.&lt;br /&gt;
&lt;br /&gt;
After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.&lt;br /&gt;
&lt;br /&gt;
With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.&lt;br /&gt;
&lt;br /&gt;
Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.&lt;br /&gt;
&lt;br /&gt;
Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.&lt;br /&gt;
&lt;br /&gt;
The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.&lt;br /&gt;
&lt;br /&gt;
Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.&lt;br /&gt;
&lt;br /&gt;
Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.&lt;br /&gt;
&lt;br /&gt;
The high demand in the current financial year, compared to last year, for work arose out of two factors &amp;ndash; the drought and the initial commitment of the Centre to financially support the scheme.&lt;br /&gt;
&lt;br /&gt;
By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.&lt;br /&gt;
&lt;br /&gt;
Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.&lt;br /&gt;
&lt;br /&gt;
Madhya Pradesh warned that for it to continue to &amp;lsquo;confidently proceed with labour engagement&amp;rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.&lt;br /&gt;
&lt;br /&gt;
Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &amp;lsquo;severe drought conditions in the state&amp;rsquo;.&lt;br /&gt;
&lt;br /&gt;
Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.&lt;br /&gt;
&lt;br /&gt;
Jammu &amp;amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.&lt;br /&gt;
&lt;br /&gt;
Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.&lt;br /&gt;
&lt;br /&gt;
Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.&lt;br /&gt;
&lt;br /&gt;
Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.&lt;br /&gt;
&lt;br /&gt;
Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.&lt;br /&gt;
&lt;br /&gt;
But, the Centre&amp;rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.&lt;br /&gt;
&lt;br /&gt;
Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.&lt;br /&gt;
&lt;br /&gt;
Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;RUNNING ON EMPTY&lt;br /&gt;
&lt;/strong&gt;&lt;br /&gt;
* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year&lt;br /&gt;
&lt;br /&gt;
&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;Business Standard, 25 February, 2016, http://www.business-standard.com/article/economy-policy/govt-bullish-on-mgnregs-but-bearish-on-funds-116022500009_1.html&#039;,
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-Business Standard

Centre owes states Rs 5,595 crore for work already completed

A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;-Business Standard&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Centre owes states Rs 5,595 crore for work already completed&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &amp;mdash; 16 per cent of the budgeted funds for the scheme &amp;mdash; causing stress to people, particularly in drought-hit states.&lt;br /&gt;&lt;br /&gt;After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.&lt;br /&gt;&lt;br /&gt;With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.&lt;br /&gt;&lt;br /&gt;Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.&lt;br /&gt;&lt;br /&gt;Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.&lt;br /&gt;&lt;br /&gt;The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.&lt;br /&gt;&lt;br /&gt;Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.&lt;br /&gt;&lt;br /&gt;Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.&lt;br /&gt;&lt;br /&gt;The high demand in the current financial year, compared to last year, for work arose out of two factors &amp;ndash; the drought and the initial commitment of the Centre to financially support the scheme.&lt;br /&gt;&lt;br /&gt;By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.&lt;br /&gt;&lt;br /&gt;Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.&lt;br /&gt;&lt;br /&gt;Madhya Pradesh warned that for it to continue to &amp;lsquo;confidently proceed with labour engagement&amp;rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.&lt;br /&gt;&lt;br /&gt;Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &amp;lsquo;severe drought conditions in the state&amp;rsquo;.&lt;br /&gt;&lt;br /&gt;Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.&lt;br /&gt;&lt;br /&gt;Jammu &amp;amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.&lt;br /&gt;&lt;br /&gt;Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.&lt;br /&gt;&lt;br /&gt;Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.&lt;br /&gt;&lt;br /&gt;Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.&lt;br /&gt;&lt;br /&gt;Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.&lt;br /&gt;&lt;br /&gt;But, the Centre&amp;rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.&lt;br /&gt;&lt;br /&gt;Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.&lt;br /&gt;&lt;br /&gt;Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;RUNNING ON EMPTY&lt;br /&gt;&lt;/strong&gt;&lt;br /&gt;* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year&lt;br /&gt;&lt;br /&gt;&lt;/div&gt;&#039;,
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	&#039;title&#039; =&gt; &#039;Govt bullish on MGNREGS, but bearish on funds -Nitin Sethi&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-Business Standard&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Centre owes states Rs 5,595 crore for work already completed&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &amp;mdash; 16 per cent of the budgeted funds for the scheme &amp;mdash; causing stress to people, particularly in drought-hit states.&lt;br /&gt;
&lt;br /&gt;
After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.&lt;br /&gt;
&lt;br /&gt;
With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.&lt;br /&gt;
&lt;br /&gt;
Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.&lt;br /&gt;
&lt;br /&gt;
Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.&lt;br /&gt;
&lt;br /&gt;
The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.&lt;br /&gt;
&lt;br /&gt;
Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.&lt;br /&gt;
&lt;br /&gt;
Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.&lt;br /&gt;
&lt;br /&gt;
The high demand in the current financial year, compared to last year, for work arose out of two factors &amp;ndash; the drought and the initial commitment of the Centre to financially support the scheme.&lt;br /&gt;
&lt;br /&gt;
By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.&lt;br /&gt;
&lt;br /&gt;
Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.&lt;br /&gt;
&lt;br /&gt;
Madhya Pradesh warned that for it to continue to &amp;lsquo;confidently proceed with labour engagement&amp;rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.&lt;br /&gt;
&lt;br /&gt;
Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &amp;lsquo;severe drought conditions in the state&amp;rsquo;.&lt;br /&gt;
&lt;br /&gt;
Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.&lt;br /&gt;
&lt;br /&gt;
Jammu &amp;amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.&lt;br /&gt;
&lt;br /&gt;
Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.&lt;br /&gt;
&lt;br /&gt;
Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.&lt;br /&gt;
&lt;br /&gt;
Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.&lt;br /&gt;
&lt;br /&gt;
Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.&lt;br /&gt;
&lt;br /&gt;
But, the Centre&amp;rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.&lt;br /&gt;
&lt;br /&gt;
Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.&lt;br /&gt;
&lt;br /&gt;
Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;RUNNING ON EMPTY&lt;br /&gt;
&lt;/strong&gt;&lt;br /&gt;
* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year&lt;br /&gt;
&lt;br /&gt;
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;Business Standard, 25 February, 2016, http://www.business-standard.com/article/economy-policy/govt-bullish-on-mgnregs-but-bearish-on-funds-116022500009_1.html&#039;,
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-Business Standard

Centre owes states Rs 5,595 crore for work already completed

A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore...&#039;
$disp = &#039;&lt;div align=&quot;justify&quot;&gt;-Business Standard&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Centre owes states Rs 5,595 crore for work already completed&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &amp;mdash; 16 per cent of the budgeted funds for the scheme &amp;mdash; causing stress to people, particularly in drought-hit states.&lt;br /&gt;&lt;br /&gt;After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.&lt;br /&gt;&lt;br /&gt;With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.&lt;br /&gt;&lt;br /&gt;Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.&lt;br /&gt;&lt;br /&gt;Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.&lt;br /&gt;&lt;br /&gt;The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.&lt;br /&gt;&lt;br /&gt;Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.&lt;br /&gt;&lt;br /&gt;Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.&lt;br /&gt;&lt;br /&gt;The high demand in the current financial year, compared to last year, for work arose out of two factors &amp;ndash; the drought and the initial commitment of the Centre to financially support the scheme.&lt;br /&gt;&lt;br /&gt;By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.&lt;br /&gt;&lt;br /&gt;Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.&lt;br /&gt;&lt;br /&gt;Madhya Pradesh warned that for it to continue to &amp;lsquo;confidently proceed with labour engagement&amp;rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.&lt;br /&gt;&lt;br /&gt;Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &amp;lsquo;severe drought conditions in the state&amp;rsquo;.&lt;br /&gt;&lt;br /&gt;Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.&lt;br /&gt;&lt;br /&gt;Jammu &amp;amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.&lt;br /&gt;&lt;br /&gt;Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.&lt;br /&gt;&lt;br /&gt;Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.&lt;br /&gt;&lt;br /&gt;Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.&lt;br /&gt;&lt;br /&gt;Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.&lt;br /&gt;&lt;br /&gt;But, the Centre&amp;rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.&lt;br /&gt;&lt;br /&gt;Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.&lt;br /&gt;&lt;br /&gt;Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;RUNNING ON EMPTY&lt;br /&gt;&lt;/strong&gt;&lt;br /&gt;* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year&lt;br /&gt;&lt;br /&gt;&lt;/div&gt;&#039;
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Centre owes states Rs 5,595 crore for work already completed

A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore..."/>
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                <strong>Govt bullish on MGNREGS, but bearish on funds -Nitin Sethi</strong></h1>
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                <div align="justify">-Business Standard<br /><br /><em>Centre owes states Rs 5,595 crore for work already completed<br /></em><br />A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &mdash; 16 per cent of the budgeted funds for the scheme &mdash; causing stress to people, particularly in drought-hit states.<br /><br />After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.<br /><br />With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.<br /><br />Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.<br /><br />Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.<br /><br />The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.<br /><br />Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.<br /><br />Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.<br /><br />The high demand in the current financial year, compared to last year, for work arose out of two factors &ndash; the drought and the initial commitment of the Centre to financially support the scheme.<br /><br />By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.<br /><br />Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.<br /><br />Madhya Pradesh warned that for it to continue to &lsquo;confidently proceed with labour engagement&rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.<br /><br />Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &lsquo;severe drought conditions in the state&rsquo;.<br /><br />Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.<br /><br />Jammu &amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.<br /><br />Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.<br /><br />Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.<br /><br />Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.<br /><br />Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.<br /><br />But, the Centre&rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.<br /><br />Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.<br /><br />Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.<br /><br /><strong>RUNNING ON EMPTY<br /></strong><br />* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme<br />&nbsp;&nbsp;&nbsp; &nbsp;<br />* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap<br />&nbsp;&nbsp;&nbsp; &nbsp;<br />* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought<br />&nbsp;&nbsp;&nbsp; &nbsp;<br />* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year<br /><br /></div>               </font>
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		&#039;title&#039; =&gt; &#039;Govt bullish on MGNREGS, but bearish on funds -Nitin Sethi&#039;,
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		&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-Business Standard&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Centre owes states Rs 5,595 crore for work already completed&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &amp;mdash; 16 per cent of the budgeted funds for the scheme &amp;mdash; causing stress to people, particularly in drought-hit states.&lt;br /&gt;
&lt;br /&gt;
After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.&lt;br /&gt;
&lt;br /&gt;
With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.&lt;br /&gt;
&lt;br /&gt;
Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.&lt;br /&gt;
&lt;br /&gt;
Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.&lt;br /&gt;
&lt;br /&gt;
The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.&lt;br /&gt;
&lt;br /&gt;
Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.&lt;br /&gt;
&lt;br /&gt;
Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.&lt;br /&gt;
&lt;br /&gt;
The high demand in the current financial year, compared to last year, for work arose out of two factors &amp;ndash; the drought and the initial commitment of the Centre to financially support the scheme.&lt;br /&gt;
&lt;br /&gt;
By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.&lt;br /&gt;
&lt;br /&gt;
Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.&lt;br /&gt;
&lt;br /&gt;
Madhya Pradesh warned that for it to continue to &amp;lsquo;confidently proceed with labour engagement&amp;rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.&lt;br /&gt;
&lt;br /&gt;
Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &amp;lsquo;severe drought conditions in the state&amp;rsquo;.&lt;br /&gt;
&lt;br /&gt;
Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.&lt;br /&gt;
&lt;br /&gt;
Jammu &amp;amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.&lt;br /&gt;
&lt;br /&gt;
Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.&lt;br /&gt;
&lt;br /&gt;
Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.&lt;br /&gt;
&lt;br /&gt;
Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.&lt;br /&gt;
&lt;br /&gt;
Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.&lt;br /&gt;
&lt;br /&gt;
But, the Centre&amp;rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.&lt;br /&gt;
&lt;br /&gt;
Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.&lt;br /&gt;
&lt;br /&gt;
Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;RUNNING ON EMPTY&lt;br /&gt;
&lt;/strong&gt;&lt;br /&gt;
* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year&lt;br /&gt;
&lt;br /&gt;
&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;Business Standard, 25 February, 2016, http://www.business-standard.com/article/economy-policy/govt-bullish-on-mgnregs-but-bearish-on-funds-116022500009_1.html&#039;,
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	&#039;metaTitle&#039; =&gt; &#039;LATEST NEWS UPDATES | Govt bullish on MGNREGS, but bearish on funds -Nitin Sethi&#039;,
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-Business Standard

Centre owes states Rs 5,595 crore for work already completed

A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;-Business Standard&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Centre owes states Rs 5,595 crore for work already completed&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &amp;mdash; 16 per cent of the budgeted funds for the scheme &amp;mdash; causing stress to people, particularly in drought-hit states.&lt;br /&gt;&lt;br /&gt;After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.&lt;br /&gt;&lt;br /&gt;With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.&lt;br /&gt;&lt;br /&gt;Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.&lt;br /&gt;&lt;br /&gt;Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.&lt;br /&gt;&lt;br /&gt;The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.&lt;br /&gt;&lt;br /&gt;Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.&lt;br /&gt;&lt;br /&gt;Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.&lt;br /&gt;&lt;br /&gt;The high demand in the current financial year, compared to last year, for work arose out of two factors &amp;ndash; the drought and the initial commitment of the Centre to financially support the scheme.&lt;br /&gt;&lt;br /&gt;By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.&lt;br /&gt;&lt;br /&gt;Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.&lt;br /&gt;&lt;br /&gt;Madhya Pradesh warned that for it to continue to &amp;lsquo;confidently proceed with labour engagement&amp;rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.&lt;br /&gt;&lt;br /&gt;Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &amp;lsquo;severe drought conditions in the state&amp;rsquo;.&lt;br /&gt;&lt;br /&gt;Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.&lt;br /&gt;&lt;br /&gt;Jammu &amp;amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.&lt;br /&gt;&lt;br /&gt;Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.&lt;br /&gt;&lt;br /&gt;Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.&lt;br /&gt;&lt;br /&gt;Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.&lt;br /&gt;&lt;br /&gt;Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.&lt;br /&gt;&lt;br /&gt;But, the Centre&amp;rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.&lt;br /&gt;&lt;br /&gt;Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.&lt;br /&gt;&lt;br /&gt;Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;RUNNING ON EMPTY&lt;br /&gt;&lt;/strong&gt;&lt;br /&gt;* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year&lt;br /&gt;&lt;br /&gt;&lt;/div&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
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	&#039;id&#039; =&gt; (int) 30615,
	&#039;title&#039; =&gt; &#039;Govt bullish on MGNREGS, but bearish on funds -Nitin Sethi&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-Business Standard&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Centre owes states Rs 5,595 crore for work already completed&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &amp;mdash; 16 per cent of the budgeted funds for the scheme &amp;mdash; causing stress to people, particularly in drought-hit states.&lt;br /&gt;
&lt;br /&gt;
After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.&lt;br /&gt;
&lt;br /&gt;
With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.&lt;br /&gt;
&lt;br /&gt;
Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.&lt;br /&gt;
&lt;br /&gt;
Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.&lt;br /&gt;
&lt;br /&gt;
The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.&lt;br /&gt;
&lt;br /&gt;
Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.&lt;br /&gt;
&lt;br /&gt;
Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.&lt;br /&gt;
&lt;br /&gt;
The high demand in the current financial year, compared to last year, for work arose out of two factors &amp;ndash; the drought and the initial commitment of the Centre to financially support the scheme.&lt;br /&gt;
&lt;br /&gt;
By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.&lt;br /&gt;
&lt;br /&gt;
Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.&lt;br /&gt;
&lt;br /&gt;
Madhya Pradesh warned that for it to continue to &amp;lsquo;confidently proceed with labour engagement&amp;rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.&lt;br /&gt;
&lt;br /&gt;
Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &amp;lsquo;severe drought conditions in the state&amp;rsquo;.&lt;br /&gt;
&lt;br /&gt;
Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.&lt;br /&gt;
&lt;br /&gt;
Jammu &amp;amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.&lt;br /&gt;
&lt;br /&gt;
Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.&lt;br /&gt;
&lt;br /&gt;
Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.&lt;br /&gt;
&lt;br /&gt;
Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.&lt;br /&gt;
&lt;br /&gt;
Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.&lt;br /&gt;
&lt;br /&gt;
But, the Centre&amp;rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.&lt;br /&gt;
&lt;br /&gt;
Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.&lt;br /&gt;
&lt;br /&gt;
Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;RUNNING ON EMPTY&lt;br /&gt;
&lt;/strong&gt;&lt;br /&gt;
* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year&lt;br /&gt;
&lt;br /&gt;
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;Business Standard, 25 February, 2016, http://www.business-standard.com/article/economy-policy/govt-bullish-on-mgnregs-but-bearish-on-funds-116022500009_1.html&#039;,
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-Business Standard

Centre owes states Rs 5,595 crore for work already completed

A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore...&#039;
$disp = &#039;&lt;div align=&quot;justify&quot;&gt;-Business Standard&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Centre owes states Rs 5,595 crore for work already completed&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &amp;mdash; 16 per cent of the budgeted funds for the scheme &amp;mdash; causing stress to people, particularly in drought-hit states.&lt;br /&gt;&lt;br /&gt;After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.&lt;br /&gt;&lt;br /&gt;With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.&lt;br /&gt;&lt;br /&gt;Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.&lt;br /&gt;&lt;br /&gt;Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.&lt;br /&gt;&lt;br /&gt;The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.&lt;br /&gt;&lt;br /&gt;Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.&lt;br /&gt;&lt;br /&gt;Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.&lt;br /&gt;&lt;br /&gt;The high demand in the current financial year, compared to last year, for work arose out of two factors &amp;ndash; the drought and the initial commitment of the Centre to financially support the scheme.&lt;br /&gt;&lt;br /&gt;By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.&lt;br /&gt;&lt;br /&gt;Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.&lt;br /&gt;&lt;br /&gt;Madhya Pradesh warned that for it to continue to &amp;lsquo;confidently proceed with labour engagement&amp;rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.&lt;br /&gt;&lt;br /&gt;Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &amp;lsquo;severe drought conditions in the state&amp;rsquo;.&lt;br /&gt;&lt;br /&gt;Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.&lt;br /&gt;&lt;br /&gt;Jammu &amp;amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.&lt;br /&gt;&lt;br /&gt;Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.&lt;br /&gt;&lt;br /&gt;Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.&lt;br /&gt;&lt;br /&gt;Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.&lt;br /&gt;&lt;br /&gt;Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.&lt;br /&gt;&lt;br /&gt;But, the Centre&amp;rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.&lt;br /&gt;&lt;br /&gt;Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.&lt;br /&gt;&lt;br /&gt;Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;RUNNING ON EMPTY&lt;br /&gt;&lt;/strong&gt;&lt;br /&gt;* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year&lt;br /&gt;&lt;br /&gt;&lt;/div&gt;&#039;
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                <strong>Govt bullish on MGNREGS, but bearish on funds -Nitin Sethi</strong></h1>
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                <div align="justify">-Business Standard<br /><br /><em>Centre owes states Rs 5,595 crore for work already completed<br /></em><br />A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &mdash; 16 per cent of the budgeted funds for the scheme &mdash; causing stress to people, particularly in drought-hit states.<br /><br />After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.<br /><br />With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.<br /><br />Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.<br /><br />Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.<br /><br />The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.<br /><br />Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.<br /><br />Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.<br /><br />The high demand in the current financial year, compared to last year, for work arose out of two factors &ndash; the drought and the initial commitment of the Centre to financially support the scheme.<br /><br />By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.<br /><br />Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.<br /><br />Madhya Pradesh warned that for it to continue to &lsquo;confidently proceed with labour engagement&rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.<br /><br />Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &lsquo;severe drought conditions in the state&rsquo;.<br /><br />Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.<br /><br />Jammu &amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.<br /><br />Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.<br /><br />Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.<br /><br />Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.<br /><br />Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.<br /><br />But, the Centre&rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.<br /><br />Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.<br /><br />Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.<br /><br /><strong>RUNNING ON EMPTY<br /></strong><br />* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme<br />&nbsp;&nbsp;&nbsp; &nbsp;<br />* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap<br />&nbsp;&nbsp;&nbsp; &nbsp;<br />* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought<br />&nbsp;&nbsp;&nbsp; &nbsp;<br />* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year<br /><br /></div>               </font>
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		&#039;title&#039; =&gt; &#039;Govt bullish on MGNREGS, but bearish on funds -Nitin Sethi&#039;,
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		&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-Business Standard&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Centre owes states Rs 5,595 crore for work already completed&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &amp;mdash; 16 per cent of the budgeted funds for the scheme &amp;mdash; causing stress to people, particularly in drought-hit states.&lt;br /&gt;
&lt;br /&gt;
After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.&lt;br /&gt;
&lt;br /&gt;
With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.&lt;br /&gt;
&lt;br /&gt;
Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.&lt;br /&gt;
&lt;br /&gt;
Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.&lt;br /&gt;
&lt;br /&gt;
The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.&lt;br /&gt;
&lt;br /&gt;
Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.&lt;br /&gt;
&lt;br /&gt;
Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.&lt;br /&gt;
&lt;br /&gt;
The high demand in the current financial year, compared to last year, for work arose out of two factors &amp;ndash; the drought and the initial commitment of the Centre to financially support the scheme.&lt;br /&gt;
&lt;br /&gt;
By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.&lt;br /&gt;
&lt;br /&gt;
Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.&lt;br /&gt;
&lt;br /&gt;
Madhya Pradesh warned that for it to continue to &amp;lsquo;confidently proceed with labour engagement&amp;rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.&lt;br /&gt;
&lt;br /&gt;
Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &amp;lsquo;severe drought conditions in the state&amp;rsquo;.&lt;br /&gt;
&lt;br /&gt;
Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.&lt;br /&gt;
&lt;br /&gt;
Jammu &amp;amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.&lt;br /&gt;
&lt;br /&gt;
Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.&lt;br /&gt;
&lt;br /&gt;
Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.&lt;br /&gt;
&lt;br /&gt;
Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.&lt;br /&gt;
&lt;br /&gt;
Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.&lt;br /&gt;
&lt;br /&gt;
But, the Centre&amp;rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.&lt;br /&gt;
&lt;br /&gt;
Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.&lt;br /&gt;
&lt;br /&gt;
Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;RUNNING ON EMPTY&lt;br /&gt;
&lt;/strong&gt;&lt;br /&gt;
* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year&lt;br /&gt;
&lt;br /&gt;
&lt;/div&gt;&#039;,
		&#039;credit_writer&#039; =&gt; &#039;Business Standard, 25 February, 2016, http://www.business-standard.com/article/economy-policy/govt-bullish-on-mgnregs-but-bearish-on-funds-116022500009_1.html&#039;,
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-Business Standard

Centre owes states Rs 5,595 crore for work already completed

A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore...&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;-Business Standard&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Centre owes states Rs 5,595 crore for work already completed&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &amp;mdash; 16 per cent of the budgeted funds for the scheme &amp;mdash; causing stress to people, particularly in drought-hit states.&lt;br /&gt;&lt;br /&gt;After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.&lt;br /&gt;&lt;br /&gt;With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.&lt;br /&gt;&lt;br /&gt;Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.&lt;br /&gt;&lt;br /&gt;Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.&lt;br /&gt;&lt;br /&gt;The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.&lt;br /&gt;&lt;br /&gt;Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.&lt;br /&gt;&lt;br /&gt;Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.&lt;br /&gt;&lt;br /&gt;The high demand in the current financial year, compared to last year, for work arose out of two factors &amp;ndash; the drought and the initial commitment of the Centre to financially support the scheme.&lt;br /&gt;&lt;br /&gt;By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.&lt;br /&gt;&lt;br /&gt;Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.&lt;br /&gt;&lt;br /&gt;Madhya Pradesh warned that for it to continue to &amp;lsquo;confidently proceed with labour engagement&amp;rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.&lt;br /&gt;&lt;br /&gt;Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &amp;lsquo;severe drought conditions in the state&amp;rsquo;.&lt;br /&gt;&lt;br /&gt;Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.&lt;br /&gt;&lt;br /&gt;Jammu &amp;amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.&lt;br /&gt;&lt;br /&gt;Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.&lt;br /&gt;&lt;br /&gt;Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.&lt;br /&gt;&lt;br /&gt;Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.&lt;br /&gt;&lt;br /&gt;Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.&lt;br /&gt;&lt;br /&gt;But, the Centre&amp;rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.&lt;br /&gt;&lt;br /&gt;Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.&lt;br /&gt;&lt;br /&gt;Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;RUNNING ON EMPTY&lt;br /&gt;&lt;/strong&gt;&lt;br /&gt;* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year&lt;br /&gt;&lt;br /&gt;&lt;/div&gt;&#039;,
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	&#039;id&#039; =&gt; (int) 30615,
	&#039;title&#039; =&gt; &#039;Govt bullish on MGNREGS, but bearish on funds -Nitin Sethi&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div align=&quot;justify&quot;&gt;
-Business Standard&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Centre owes states Rs 5,595 crore for work already completed&lt;br /&gt;
&lt;/em&gt;&lt;br /&gt;
A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &amp;mdash; 16 per cent of the budgeted funds for the scheme &amp;mdash; causing stress to people, particularly in drought-hit states.&lt;br /&gt;
&lt;br /&gt;
After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.&lt;br /&gt;
&lt;br /&gt;
With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.&lt;br /&gt;
&lt;br /&gt;
Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.&lt;br /&gt;
&lt;br /&gt;
Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.&lt;br /&gt;
&lt;br /&gt;
The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.&lt;br /&gt;
&lt;br /&gt;
Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.&lt;br /&gt;
&lt;br /&gt;
Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.&lt;br /&gt;
&lt;br /&gt;
The high demand in the current financial year, compared to last year, for work arose out of two factors &amp;ndash; the drought and the initial commitment of the Centre to financially support the scheme.&lt;br /&gt;
&lt;br /&gt;
By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.&lt;br /&gt;
&lt;br /&gt;
Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.&lt;br /&gt;
&lt;br /&gt;
Madhya Pradesh warned that for it to continue to &amp;lsquo;confidently proceed with labour engagement&amp;rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.&lt;br /&gt;
&lt;br /&gt;
Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &amp;lsquo;severe drought conditions in the state&amp;rsquo;.&lt;br /&gt;
&lt;br /&gt;
Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.&lt;br /&gt;
&lt;br /&gt;
Jammu &amp;amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.&lt;br /&gt;
&lt;br /&gt;
Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.&lt;br /&gt;
&lt;br /&gt;
Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.&lt;br /&gt;
&lt;br /&gt;
Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.&lt;br /&gt;
&lt;br /&gt;
Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.&lt;br /&gt;
&lt;br /&gt;
But, the Centre&amp;rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.&lt;br /&gt;
&lt;br /&gt;
Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.&lt;br /&gt;
&lt;br /&gt;
Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;RUNNING ON EMPTY&lt;br /&gt;
&lt;/strong&gt;&lt;br /&gt;
* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought&lt;br /&gt;
&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year&lt;br /&gt;
&lt;br /&gt;
&lt;/div&gt;&#039;,
	&#039;credit_writer&#039; =&gt; &#039;Business Standard, 25 February, 2016, http://www.business-standard.com/article/economy-policy/govt-bullish-on-mgnregs-but-bearish-on-funds-116022500009_1.html&#039;,
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-Business Standard

Centre owes states Rs 5,595 crore for work already completed

A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore...&#039;
$disp = &#039;&lt;div align=&quot;justify&quot;&gt;-Business Standard&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Centre owes states Rs 5,595 crore for work already completed&lt;br /&gt;&lt;/em&gt;&lt;br /&gt;A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &amp;mdash; 16 per cent of the budgeted funds for the scheme &amp;mdash; causing stress to people, particularly in drought-hit states.&lt;br /&gt;&lt;br /&gt;After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.&lt;br /&gt;&lt;br /&gt;With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.&lt;br /&gt;&lt;br /&gt;Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.&lt;br /&gt;&lt;br /&gt;Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.&lt;br /&gt;&lt;br /&gt;The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.&lt;br /&gt;&lt;br /&gt;Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.&lt;br /&gt;&lt;br /&gt;Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.&lt;br /&gt;&lt;br /&gt;The high demand in the current financial year, compared to last year, for work arose out of two factors &amp;ndash; the drought and the initial commitment of the Centre to financially support the scheme.&lt;br /&gt;&lt;br /&gt;By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.&lt;br /&gt;&lt;br /&gt;Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.&lt;br /&gt;&lt;br /&gt;Madhya Pradesh warned that for it to continue to &amp;lsquo;confidently proceed with labour engagement&amp;rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.&lt;br /&gt;&lt;br /&gt;Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &amp;lsquo;severe drought conditions in the state&amp;rsquo;.&lt;br /&gt;&lt;br /&gt;Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.&lt;br /&gt;&lt;br /&gt;Jammu &amp;amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.&lt;br /&gt;&lt;br /&gt;Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.&lt;br /&gt;&lt;br /&gt;Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.&lt;br /&gt;&lt;br /&gt;Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.&lt;br /&gt;&lt;br /&gt;Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.&lt;br /&gt;&lt;br /&gt;But, the Centre&amp;rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.&lt;br /&gt;&lt;br /&gt;Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.&lt;br /&gt;&lt;br /&gt;Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;RUNNING ON EMPTY&lt;br /&gt;&lt;/strong&gt;&lt;br /&gt;* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought&lt;br /&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year&lt;br /&gt;&lt;br /&gt;&lt;/div&gt;&#039;
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Centre owes states Rs 5,595 crore for work already completed

A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore..."/>
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            <h1 class="news_headlines" style="font-style:normal">
                <strong>Govt bullish on MGNREGS, but bearish on funds -Nitin Sethi</strong></h1>
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                <div align="justify">-Business Standard<br /><br /><em>Centre owes states Rs 5,595 crore for work already completed<br /></em><br />A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &mdash; 16 per cent of the budgeted funds for the scheme &mdash; causing stress to people, particularly in drought-hit states.<br /><br />After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.<br /><br />With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.<br /><br />Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.<br /><br />Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.<br /><br />The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.<br /><br />Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.<br /><br />Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.<br /><br />The high demand in the current financial year, compared to last year, for work arose out of two factors &ndash; the drought and the initial commitment of the Centre to financially support the scheme.<br /><br />By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.<br /><br />Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.<br /><br />Madhya Pradesh warned that for it to continue to &lsquo;confidently proceed with labour engagement&rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.<br /><br />Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &lsquo;severe drought conditions in the state&rsquo;.<br /><br />Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.<br /><br />Jammu &amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.<br /><br />Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.<br /><br />Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.<br /><br />Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.<br /><br />Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.<br /><br />But, the Centre&rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.<br /><br />Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.<br /><br />Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.<br /><br /><strong>RUNNING ON EMPTY<br /></strong><br />* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme<br />&nbsp;&nbsp;&nbsp; &nbsp;<br />* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap<br />&nbsp;&nbsp;&nbsp; &nbsp;<br />* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought<br />&nbsp;&nbsp;&nbsp; &nbsp;<br />* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year<br /><br /></div>               </font>
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		'id' => (int) 30615,
		'title' => 'Govt bullish on MGNREGS, but bearish on funds -Nitin Sethi',
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-Business Standard<br />
<br />
<em>Centre owes states Rs 5,595 crore for work already completed<br />
</em><br />
A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &mdash; 16 per cent of the budgeted funds for the scheme &mdash; causing stress to people, particularly in drought-hit states.<br />
<br />
After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.<br />
<br />
With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.<br />
<br />
Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.<br />
<br />
Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.<br />
<br />
The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.<br />
<br />
Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.<br />
<br />
Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.<br />
<br />
The high demand in the current financial year, compared to last year, for work arose out of two factors &ndash; the drought and the initial commitment of the Centre to financially support the scheme.<br />
<br />
By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.<br />
<br />
Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.<br />
<br />
Madhya Pradesh warned that for it to continue to &lsquo;confidently proceed with labour engagement&rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.<br />
<br />
Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &lsquo;severe drought conditions in the state&rsquo;.<br />
<br />
Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.<br />
<br />
Jammu &amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.<br />
<br />
Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.<br />
<br />
Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.<br />
<br />
Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.<br />
<br />
Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.<br />
<br />
But, the Centre&rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.<br />
<br />
Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.<br />
<br />
Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.<br />
<br />
<strong>RUNNING ON EMPTY<br />
</strong><br />
* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme<br />
&nbsp;&nbsp;&nbsp; &nbsp;<br />
* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap<br />
&nbsp;&nbsp;&nbsp; &nbsp;<br />
* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought<br />
&nbsp;&nbsp;&nbsp; &nbsp;<br />
* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year<br />
<br />
</div>',
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-Business Standard

Centre owes states Rs 5,595 crore for work already completed

A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore...',
	'disp' => '<div align="justify">-Business Standard<br /><br /><em>Centre owes states Rs 5,595 crore for work already completed<br /></em><br />A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &mdash; 16 per cent of the budgeted funds for the scheme &mdash; causing stress to people, particularly in drought-hit states.<br /><br />After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.<br /><br />With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.<br /><br />Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.<br /><br />Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.<br /><br />The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.<br /><br />Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.<br /><br />Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.<br /><br />The high demand in the current financial year, compared to last year, for work arose out of two factors &ndash; the drought and the initial commitment of the Centre to financially support the scheme.<br /><br />By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.<br /><br />Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.<br /><br />Madhya Pradesh warned that for it to continue to &lsquo;confidently proceed with labour engagement&rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.<br /><br />Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &lsquo;severe drought conditions in the state&rsquo;.<br /><br />Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.<br /><br />Jammu &amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.<br /><br />Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.<br /><br />Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.<br /><br />Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.<br /><br />Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.<br /><br />But, the Centre&rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.<br /><br />Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.<br /><br />Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.<br /><br /><strong>RUNNING ON EMPTY<br /></strong><br />* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme<br />&nbsp;&nbsp;&nbsp; &nbsp;<br />* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap<br />&nbsp;&nbsp;&nbsp; &nbsp;<br />* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought<br />&nbsp;&nbsp;&nbsp; &nbsp;<br />* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year<br /><br /></div>',
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	'id' => (int) 30615,
	'title' => 'Govt bullish on MGNREGS, but bearish on funds -Nitin Sethi',
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	'description' => '<div align="justify">
-Business Standard<br />
<br />
<em>Centre owes states Rs 5,595 crore for work already completed<br />
</em><br />
A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &mdash; 16 per cent of the budgeted funds for the scheme &mdash; causing stress to people, particularly in drought-hit states.<br />
<br />
After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.<br />
<br />
With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.<br />
<br />
Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.<br />
<br />
Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.<br />
<br />
The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.<br />
<br />
Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.<br />
<br />
Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.<br />
<br />
The high demand in the current financial year, compared to last year, for work arose out of two factors &ndash; the drought and the initial commitment of the Centre to financially support the scheme.<br />
<br />
By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.<br />
<br />
Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.<br />
<br />
Madhya Pradesh warned that for it to continue to &lsquo;confidently proceed with labour engagement&rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.<br />
<br />
Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &lsquo;severe drought conditions in the state&rsquo;.<br />
<br />
Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.<br />
<br />
Jammu &amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.<br />
<br />
Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.<br />
<br />
Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.<br />
<br />
Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.<br />
<br />
Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.<br />
<br />
But, the Centre&rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.<br />
<br />
Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.<br />
<br />
Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.<br />
<br />
<strong>RUNNING ON EMPTY<br />
</strong><br />
* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme<br />
&nbsp;&nbsp;&nbsp; &nbsp;<br />
* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap<br />
&nbsp;&nbsp;&nbsp; &nbsp;<br />
* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought<br />
&nbsp;&nbsp;&nbsp; &nbsp;<br />
* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year<br />
<br />
</div>',
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-Business Standard

Centre owes states Rs 5,595 crore for work already completed

A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore...'
$disp = '<div align="justify">-Business Standard<br /><br /><em>Centre owes states Rs 5,595 crore for work already completed<br /></em><br />A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed &mdash; 16 per cent of the budgeted funds for the scheme &mdash; causing stress to people, particularly in drought-hit states.<br /><br />After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India.<br /><br />With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done.<br /><br />Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material.<br /><br />Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February.<br /><br />The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills.<br /><br />Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception.<br /><br />Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated.<br /><br />The high demand in the current financial year, compared to last year, for work arose out of two factors &ndash; the drought and the initial commitment of the Centre to financially support the scheme.<br /><br />By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels.<br /><br />Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months.<br /><br />Madhya Pradesh warned that for it to continue to &lsquo;confidently proceed with labour engagement&rsquo;, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately.<br /><br />Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of &lsquo;severe drought conditions in the state&rsquo;.<br /><br />Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated.<br /><br />Jammu &amp; Kashmir had warned in October that its coffers were empty and work had to be done before winter snow.<br /><br />Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red.<br /><br />Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work.<br /><br />Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch.<br /><br />Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work.<br /><br />But, the Centre&rsquo;s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December.<br /><br />Himachal Pradesh, which asked for Rs 211 crore, has got less than half that.<br /><br />Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry.<br /><br /><strong>RUNNING ON EMPTY<br /></strong><br />* Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme<br />&nbsp;&nbsp;&nbsp; &nbsp;<br />* By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap<br />&nbsp;&nbsp;&nbsp; &nbsp;<br />* Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought<br />&nbsp;&nbsp;&nbsp; &nbsp;<br />* Demand has surged because of initial belief in states that Centre would provide funds, unlike last year<br /><br /></div>'
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Govt bullish on MGNREGS, but bearish on funds -Nitin Sethi

-Business Standard Centre owes states Rs 5,595 crore for work already completed A day after the government claimed success in Parliament over implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), government data reveal the Centre owes states Rs 5,595 crore dues for work already completed — 16 per cent of the budgeted funds for the scheme — causing stress to people, particularly in drought-hit states. After two quarters of revival in 2015-16, the rural employment scheme is again looking down an empty barrel. Many states have been pleading with the Centre since October 2015 for release of promised and greater funds, in the face of higher demand for work in drought-hit rural India. With only a month left in this financial year, fund transfer from the Union government to states has dried, leaving 21 of them with a negative balance of Rs 5,595 crore to people for work already done. Of the total liability of the Centre, Rs 4,322.97 crore is towards wages to be paid and the rest for expenses on material. Four of the eight states with officially-declared drought and where the Centre had committed to extra work of 50 days beyond the usual 100-day limit, are among those in the red. The Centre owes these four states Rs 1,455 crore for the work done till February. The financial crunch began in the third quarter of the financial year with many states warning they were running out of the money the Centre was to provide and were either paying out of their own pockets or running up pending wage bills. Some noted they had enthusiastically taken up work after commitments from the Centre to back the scheme, unlike in the previous financial year when neglect had brought the scheme to its worst performance since inception. Several states have been warning since the end of last year that they needed substantial additional support to meet the demand that has been generated. The high demand in the current financial year, compared to last year, for work arose out of two factors – the drought and the initial commitment of the Centre to financially support the scheme. By law, the scheme is demand-driven. That means if people demand work, then the state is required to create and provide work. In practice, the availability of funds, or the lack of it, decides how the states artificially suffocate demand or let people register their work demand. The budgetary allocation for the scheme is supposed to be only indicative and not a cap unlike other centrally sponsored schemes. The Centre prepares an indicative labour Budget at the beginning of the calendar year to estimate the budgetary support needed. However, by law, the Union government is required to pay states higher sums even if the work demand breaches the estimated levels. Business Standard reviewed some of the correspondence from states since October 2015 to the Union rural development ministry warning of a crisis and asking for immediate release of funds against standing dues, existing demand, and the projected demand for the coming months. Madhya Pradesh warned that for it to continue to ‘confidently proceed with labour engagement’, it would need Rs 2,960 crore, out of which it wanted Rs 1,000 crore immediately. Karnataka had in December 2015 warned it had consumed 67.5 per cent of the funds and required an injection of much higher sums because of ‘severe drought conditions in the state’. Andhra Pradesh, too, noted that in view of drought conditions prevailing across the state, it had consumed 90 per cent of the Central funds released so far. It needed more money to provide the additional 50 days of work the Union government had promised in drought-impacted areas. In October, it noted it had only Rs 85.5 crore left, while it needed Rs 3,273.8 crore for the demand of work being generated. Jammu & Kashmir had warned in October that its coffers were empty and work had to be done before winter snow. Odisha had also warned in October that it was drawing money out of its state funds for the fully-central funded scheme (only 25 per cent of the material costs are borne by the state). It noted the Centre had not released even the earmarked funds by October, leaving it in the red. Tamil Nadu wrote in October that it had only Rs 11 crore available from the Centre to carry on work. Himachal Pradesh sent a distress letter saying the Centre was not responding to its earlier requests to resolve the fund crunch. Arunachal Pradesh noted in September it had been unable to make payments for 1.16 million person-days of work. But, the Centre’s response since then has been tepid. Against a demand of Rs 3,237 crore, Andhra Pradesh has got only Rs 300 crore from the Centre in its latest release in December. Himachal Pradesh, which asked for Rs 211 crore, has got less than half that. Kerala has got Rs 365 crore against its demand of Rs 507 crore and Tamil Nadu was last given Rs 2,369 against a demand of Rs 3,758 crore. The release of funds after October remains pending or is under process at the ministry. RUNNING ON EMPTY * Centre owes 21 states Rs 5,595 crore as dues for work done under Mahatma Gandhi National Rural Employment Guarantee Scheme       * By law, Centre has to give funds as demand for work arises; budgetary provision cannot be a cap       * Many states pleading for funds to meet existing commitments and increased demand for work since October against the backdrop of drought       * Demand has surged because of initial belief in states that Centre would provide funds, unlike last year