Budgetary allocation for MGNREGA inadequate: Parliamentary panel to government

NEW DELHI: Budgetary allocation for MGNREGA is not sufficient for effective implementation of the rural job scheme this year, a Parliamentary Panel has viewed and asked the Rural Development Ministry to seek higher allocation from Finace Ministry.

The Standing Committee on Rural Development also asked the government to undertake an exercise to "completely review the scheme to find out reasons for dismal progress at ground level resulting in non-achievement of the objectives" for which MGNREGA was launched and to take corrective and remedial measures to make the scheme successful in future.

"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 today.

The Committee, chaired by P Venugopal, recommended that the department should pursue with the Ministry of Finance and Planning Commission for higher budgetary allocations of funds for MGNREGA scheme so that the inadequacy of funds could not be a "ground an a reason for slippage" in achieving the objective of the scheme.

The parliamentary panel was informed by the Ministry that during the current financial year 2014-15, against budget estimate of Rs 34,000 crore, an amount of Rs 20,722.77 crore has been released to States and Union Territories and for MGNREGA as per trend of expenditure, additional requirement of Rs 4,000 crore has been made at revised estimate stage.