Mamata points out flaws, Centre plans change in MNREGA funding
6 Aug 2014 5:51 AM IST
States have been complaining about the system that ‘penalises’ those who utilise the funds efficiently.
West Bengal chief minister Mamata Banerjee through her Facebook post has accused the centre of not releasing funds to the state. Banerjee said, ‘Despite Bengal being ranked No1 in the country in terms of expenditure under 100 days’ work in 2013-14, the centre has not released its full share of funds to the state government so far.’ Banerjee added the Bengal government has spent more than Rs5,600 crore and nearly Rs885 crore is still pending.
Sources said given the complaints, rural development ministry under Nitin Gadkari is now planning to introduce core banking system (CBS) for MGNREGS and IYA schemes. ‘The move is an attempt to eliminate parked funds with states,’ an official note of the ministry said. Parked funds are those share of funds to state governments which are being not used for the purpose it has been sanctioned.
In the present system there are several layers of bureaucracy that adds to inefficiency. For example, in the case of rural employment guarantee scheme, the funds are first released by the Centre to the state, then state to the district, then district to block, then block to gram panchayat, and finally from gram panchayat to the wage seeker. These bureaucratic processes create delay of three to six months for funds to reach the poor.
The official note added that the ministry has sought detailed proposal for implementing CBS facility for MGNREGS and IYA schemes from the states. Tuesday was the last date of submission of the proposal.
The note adds this can be done by allowing field functionaries (those who need to make payments) in IAY and MGNREGS to draw these funds, which can be reimbursed on real time basis by the centre. In the official note, the rural development minister said, ‘I understand that in-time release of central grants is possible. This may kindly be leveraged to bring out financial efficiency in flow of funds to states.’
Sources said, ‘The CBS will help the performing states to get their share instantly soon after they raise their demand against the expenditure. It will eliminate the non-performing states from taking undue ‘advantage’ of the parked funds.’ The union budget of 2014-15 has allotted Rs 33,364 crore for MNREGA.
West Bengal chief minister Mamata Banerjee through her Facebook post has accused the centre of not releasing funds to the state. Banerjee said, ‘Despite Bengal being ranked No1 in the country in terms of expenditure under 100 days’ work in 2013-14, the centre has not released its full share of funds to the state government so far.’ Banerjee added the Bengal government has spent more than Rs5,600 crore and nearly Rs885 crore is still pending.
Sources said given the complaints, rural development ministry under Nitin Gadkari is now planning to introduce core banking system (CBS) for MGNREGS and IYA schemes. ‘The move is an attempt to eliminate parked funds with states,’ an official note of the ministry said. Parked funds are those share of funds to state governments which are being not used for the purpose it has been sanctioned.
In the present system there are several layers of bureaucracy that adds to inefficiency. For example, in the case of rural employment guarantee scheme, the funds are first released by the Centre to the state, then state to the district, then district to block, then block to gram panchayat, and finally from gram panchayat to the wage seeker. These bureaucratic processes create delay of three to six months for funds to reach the poor.
The official note added that the ministry has sought detailed proposal for implementing CBS facility for MGNREGS and IYA schemes from the states. Tuesday was the last date of submission of the proposal.
The note adds this can be done by allowing field functionaries (those who need to make payments) in IAY and MGNREGS to draw these funds, which can be reimbursed on real time basis by the centre. In the official note, the rural development minister said, ‘I understand that in-time release of central grants is possible. This may kindly be leveraged to bring out financial efficiency in flow of funds to states.’
Sources said, ‘The CBS will help the performing states to get their share instantly soon after they raise their demand against the expenditure. It will eliminate the non-performing states from taking undue ‘advantage’ of the parked funds.’ The union budget of 2014-15 has allotted Rs 33,364 crore for MNREGA.
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