The union finance ministry’s decision to partially subside capital investment in healthcare and education by extending the “viability gap funding” facility to these sectors is welcome as they are vital areas of social infrastructure, which are no less important than roads and bridges. But every sector has its own complexity and the nuancing that the health ministry has sought for such subsidy to healthcare infrastructure needs serious attention. The ministry’s...

State governments will have to abide by stricter rules to receive money from the centre for the rural employment scheme in the next financial year 2011-12. The centrally sponsored Mahatma Gandhi National Rural Employment Guarantee Scheme ( MGNREGA )) has been one of the biggest drivers of rural consumption in the country. Stricter measures of fund release might lead to lower transfer to states at a time when high interest rates are...

Even as the Supreme Court has warned of a CBI inquiry into diversion of MGNREGS funds, the Centre has told the States that it will have the complaints investigated by the agency and funds will be withheld if its directives for corrective measures are ignored. The Rural Development Ministry, in its circular to the State governments, underlined its resolve to order a probe into complaints received from independent sources. It will...

Two weeks after Neyamat Ansari, a close associate of national employment guarantee scheme (NREGS) governing council member Jean Dreze, was beaten to death in Jharkhand, the Centre added on Thursday a new section to the act to force state governments to take action against irregularities in the programme. “If the Centre directs the state government for taking steps for effective implementation of the provisions of the act and the states do...

To keep control over its flagship scheme ~ the much-hyped Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) ~ and to defeat its non-Congress regimes in various states, the Centre has given itself powers to check releasing funds due to ineffective implementation.   In a six-point instruction to states, the ministry of rural development has said that audit teams and media reports have revealed “anomalies” in the implementation of the MGNREGA. “If the...