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...

Bihar's recent economic growth has created a peculiar problem for real estate and infrastructure firms in other parts of the country.  Migrant labour from the state constitutes around 50% of the unskilled workers employed in these sectors nationally, but increased government expenditure and private investment has caused rural migration from Bihar to fall by a third in recent years, resulting in labour shortages and 35-50% higher wage bills for real estate...

All rural schemes will also get a common accounting format; audit to begin with MGNREGS in 12 states At a time when the government is reeling under a number of corruption cases—several of these following critical reports from the Comptroller and Auditor General of India (CAG)—the ministry of rural development has roped in the statutory auditor to conduct a financial, compliance and performance audit of its schemes. All schemes of the ministries...

-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...