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LATEST NEWS UPDATES | MGNREGA money not spent, Centre warns of fund freeze

MGNREGA money not spent, Centre warns of fund freeze

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published Published on Feb 2, 2015   modified Modified on Feb 2, 2015
-The Tribune

Faridkot: The Ministry of Rural Development has communicated to the state that no funds would be released under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme till it fully utilised the first installment

With two months left for the financial year to end, none of the 146 blocks in Punjab have fully utilised the MGNREGA funds. Until there is full utilisation of the first installment, which is 60 per cent of total funds, the second installment will not be released, the ministry has warned all district cells of MGNREGA.

The ministry claimed all districts in Punjab had so far utilised up to 84 per cent of the first installment. The authorities believe it is not possible to utilise the entire MGNREGA funds in the remaining two months.

Officials in the state coordination wing of MGNREGA claimed that they were yet to disburse at least Rs 75 crore wages under the scheme as the Centre had not released funds. "Once these payments are made, the total utilisation of MGNREGA funds in Punjab will cross over 70 per cent of the total proposed funds," they said.

Though the scheme to ensure 100 days employment in a year to rural households had come as a boon, the issue of delayed wages is proving a major hurdle.

In Moga district, the outstanding wages are Rs 845.35 lakh, followed by Rs 618.91 lakh in Faridkot. In Ludhiana, Ferozepur, Fazilka, Bathinda, Barnala and Amritsar districts, the outstanding dues are Rs 609.39 lakh, Rs 331.74 lakh, Rs 365.13 lakh, Rs 382.95 lakh, Rs 253.32 lakh and Rs 86.62 lakh, respectively. The total outstanding wages in all 22 districts of Punjab is over Rs 75 crore.

Under the scheme, workers are entitled to get wages within 15 days. Failing this, they are entitled to compensation as per the provisions of the Payment of Wages Act, 1936 (NREGA, Schedule II, Rule 30). Further, under Section 15 of the Act, the compensation amount has to be no less than Rs 1,500, said Pawan Preet, general secretary, CPI, Faridkot. But neither actual wages nor compensation is being paid to the workers, he rued.

Facing uphill task

With two months left for the financial year to end, none of the 146 blocks in Punjab have fully utilised the MGNREGA funds. Until there is full utilisation of the first installment, which is 60%, the second installment will not be released

Officials blame delayed payment

Officials claim they are yet to disburse at least Rs75 crore wages as the Centre has not released funds. Once these payments are made, the total utilisation of MGNREGA funds will cross over 70 per cent of the total funds, they claim


The Tribune, 1 February, 2015, http://www.tribuneindia.com/news/punjab/mgnrega-money-not-spent-centre-warns-of-fund-freeze/36821.html


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