Tamil Nadu has stopped using banks to pay workers employed under the National Rural Employment Guarantee Scheme (NREGS), turning the clock back on the programme that was expected to eliminate layers of middlemen in reaching money to the poor. Rural development ministry officials at the Centre confirmed the development, but termed it “a temporary setback”. However, Tamil Nadu is not alone. Andhra Pradesh too has asked some of its poorest...

-The Hindu Business Line   The Rural Development Minister, Mr Jairam Ramesh's proposal to amend the law on minimum wages to permit a lower wage for employment under the rural jobs scheme (Mahatma Gandhi National Rural Employment Guarantee Act or MGNREGA) makes practical sense. The Karnataka High Court ruled recently that wages set under MGNREGA cannot be independent of the MWA. Effectively, it means there can be no such thing as an...

-IANS There were only 12 days of work per household in West Bengal under the rural jobs scheme MGNREGA as against the national average of 28 days, say NGOs who blame organisational inefficiency and faulty implementation for the situation in the state. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) assures 100 days of work for one member of every rural household in a year. But West Bengal's performance has...

-The Telegraph   The comptroller and auditor general today began a performance audit of the rural job scheme in 12 states, including Bengal, amid allegations of widespread corruption hobbling India’s largest social sector programme. The idea is to see whether the scheme has indeed secured villagers’ livelihood by providing guaranteed employment, and whether rules have been followed in its implementation. For instance, at least 60 per cent of the expenditure on every project under...

While a CAG audit is welcome, it alone won’t improve the effectiveness of the National Rural Employment Guarantee Act Union Minister for Rural Development Jairam Ramesh’s recent decision to ask the CAG (Comptroller and Auditor General of India) to audit MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) funds has created a buzz among social sector observers. They’ve been demanding reforms in MGNREGA’s implementation to arrest the slide in its effectiveness. The...