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LATEST NEWS UPDATES | Rural development minister Jairam Ramesh proposes social audits for all big schemes by Devika Banerji

Rural development minister Jairam Ramesh proposes social audits for all big schemes by Devika Banerji

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published Published on Nov 19, 2011   modified Modified on Nov 19, 2011

Rural development minister Jairam Ramesh has proposed social audits for the centre's big-ticket welfare programmes running under different ministries, on the lines of the scrutiny that he recently mandated for the flagship rural jobs scheme.

"The concept has the potential to revolutionise the system. If we can have social audits for three-four major social sector schemes, it will change the way the country functions," Ramesh said.

If the proposal is accepted, programmes such as the National Rural Health Mission (NRHM) and Sarva Shiksha Abhiyan (SSA) will face similar audits as the Mahatma Gandhi National Rural Employment Guarantee Programme (MGNREGA).

Unlike financial and performance audits carried out by the Comptroller and Auditor ( CAG) of India, social audits allow beneficiaries of different schemes to lodge complaints regarding malpractices.

NRHM, just like MGNREGA, has been beset by charges of corruption. The Central Bureau of Investigation is currently conducting a probe into the functioning of the schemes in Uttar Pradesh and Orissa. Ramesh plans to extend the social audit to all of his ministry's schemes.

Besides ensuring better checks, extending social audits to programmes run by the other ministries will also help lower the cost of social audits for the rural development ministry's schemes. Since the other ministries will also chip in to fund their audits, it will increase the overall viability of the practice.

Social audits are generally supervised by autonomous bodies consisting of government and non-government representatives at the grassroots level.

While the rural development ministry has asked states to mandatorily conduct social audits in every panchayat for MGNREGA, states have said that funding from the centre is not adequate.

Uttar Pradesh, Rajasthan and Madhya Pradesh, among other states, have sought removal of the cap of 0.75% of overall state expenditure for conducting social audits while seeking additional funds.

"We do not have the funds. Conducting social audit in my state will not cost less than Rs 75-Rs 80 crore," said an official in the department of rural development in Uttar Pradesh. "If a few other schemes like NRHM and SSA also have social audit, then our costs will be covered easily," the official added. Initial estimates peg the cost of conducting social audits in states in the range of Rs 22-Rs 125 crore a year.

Andhra Pradesh is the only state in India which has an effective system for conducting social audits for MGNREGA and it costs the state around Rs 25 crore a year. Over the past three years, the state government has identified irregularities worth Rs 125 crore in the scheme and has been able to recover around 30 crore.

The centre allows 6% of the total funds allocated to a state for covering administrative expenses. "I am certain that at a later date we will have to increase the cap. We are asking a lot from the states now and we will have to provide funds for the same," Ramesh said.

Based on the reports of the states, the rural development ministry will make proposals for other schemes to adopt the system. Analysts say this will enhance accountability and transparency in the system. "Social audit allows for every citizen to act as an auditor. It directly empowers those who are at the receiving end. In many ways, it is better than any other form of accountability," said Nikhil Dey, a rights activist with non-government organisation Mazdoor Kisan Shakti Sangathan.

The Economic Times, 19 November, 2011, http://economictimes.indiatimes.com/news/economy/policy/rural-development-minister-jairam-ramesh-proposes-social-audits-for-all-big-schemes/articleshow/10788637.


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