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LATEST NEWS UPDATES | NREGS scores a point in 1st report card with highest spend of Rs 56,000 crore in FY16 -Ruchika Chitravanshi

NREGS scores a point in 1st report card with highest spend of Rs 56,000 crore in FY16 -Ruchika Chitravanshi

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published Published on Jun 29, 2016   modified Modified on Jun 29, 2016
-The Economic Times

NEW DELHI: For the first time ever, the Narendra Modi government is bringing out a performance review of the National Rural Employment Guarantee Scheme (NREGS), highlighting the highest ever expenditure of Rs 56,000 crore undertaken in 2015-16 which includes Rs 12,000 crore paid in pending wages this year.

The scheme generated 235 crore person days of wage employment, highest in last 5 years. However, it continued to lag in addressing delayed payments issue with only 34.3% payments being made on time. The government claims that for the last quarter the number has gone up to 62%. The performance reivew is part of government plans to bring transparency to the scheme which has been mired in allegations of corruption, lack of asset creation and delayed payments.

"NREGS has seen a massive improvement due to intense monitoring of works (and) the electronic transfer of payment this year. We are aware there are still gaps, payments get delayed, but we are addressing these issues urgently," a senior government official said. By the end of this year, the government is expecting to make 75% payments to workers on time.

The 11 drought prone states where NREGS had introduced the provision of 50 extra days of work saw only 3.78 lakh households working for 150 days. The average person days of employment per household stood at 49 days. Of the total demand for work of 5.35 crore households, only 4.81 crore got work. Only 27 lakh of these could complete 100 days of work.

This year, the rural development ministry has allowed Karnataka and Rajasthan to generate 150 days of work per household after they declared 2016-17 a drought-prone year. Madhya Pradesh too has asked for 50 extra days of work due to drought.

With thrust on drought-proofing work under NREGS this year, irrigation potential was created in 46.57 lakh hectares of land and individual assets were created for 34 lakh families. In a recent review meeting Prime Minister Narendra Modi asked for online recording and monitoring of assets to check leakages and for the effective mapping of terrain for future developmental works.

The rural development ministry has asked for an extra allocation of Rs 15,000 crore in the supplementary budget this year. Any state which declares 2016-17 a drought year will be allowed extra work days under the scheme. Of the total allocation of Rs 38,500 crore this year the rural development ministry has releasedRs 28,000 crore to the states.


The Economic Times, 28 June, 2016, http://economictimes.indiatimes.com/news/economy/policy/nregs-scores-a-point-in-1st-report-card-with-highest-spend-of-rs-56000-crore-in-fy16/articleshow/52947721.cms


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