Govt likely to review NREGS

NEW DELHI: The Centre on Friday reiterated its faith in the job guarantee scheme, dismissing claims that it was being diluted by reduction in allocations or by narrowing its focus to 2500 blocks.
It, however, said the government would not hesitate to revisit some aspects of the scheme to beef up its efficacy.
Replying to a discussion on MGNREGA amid accusations from the Congress-led opposition that the BJP government was winding down the scheme, rural development minister Birender Singh said the allocation made by the Centre was Rs 34,000 crore as against Rs 33,000 crore of UPA government last year.
"Till October 31, the allocation of funds to different states was Rs 26,711 crore. We have also cleared about Rs 21,700 crore to nine states against pending wage dues," Singh said, rejecting criticism that states were not being paid arrears.
The minister clarified that wage component to material expenses in the MGNREGA works would stay at 60:40. He said at gram panchayat level, it would be the same ratio for every work undertaken. But at block and district level, the different works done would have an average of 60% expenditure on wages and remaining on material.
While noting that nationally 73% of total work is labour component and 24% material, Singh said the flexibility on material costs was accepted to improve the quality of assets.
But allaying fears about dilution, Singh added if the Centre felt that changes in the scheme were required to help the rural poor, then "we will certainly go for changes".
To opposition’s charges that MGNREGA would be limited to 2500 blocks from January, Singh said the issue had been misunderstood. He said a study had found that the 2500 backward blocks needed intensification of job scheme, with more funds and works, to help alleviate poverty. So, he said, while these 2500 blocks would be given priority in fund allocation, the scheme would continue in the rest of the country as before.
Fund allocation insufficient: House panel
Parliament’s standing committee on rural development has asked the government to undertake a complete review of MGNREGA to find out the reasons for its dismal progress resulting in non-achievement of the objectives for which it was launched. It has also asked the government to take corrective measures.
The committee has also said that the budgetary allocation for MGNREGA is not sufficient for its effective implementation and the government should hike its funds.
"Keeping in view the likely revision of wage rate and expected increase in outreach of households, the committee is constrained to note that the allocation made for the current year does not appear to be sufficient for effective implementation of the scheme," the panel said in its report tabled in Lok Sabha.