Revolving fund mooted for NREGS, social schemes

The Sixth Common Review Mission 2022, under the rural development ministry, has recommended setting up of a revolving fund for the employment guarantee under the Mahatma Gandhi National Rural Employment Guarantee scheme (NREGS) and other social sector schemes to ensure unrestricted fund flow to beneficiaries. It has also proposed a merger of similar schemes at state level to avoid duplication of efforts.

The CRM is responsible for reviewing implementation of rural development schemes, recognising ground realities and challenges in implementing the programmes and suggesting refinement in the existing framework.

"Effective fund flow is the backbone of any government scheme...There may be a provision of revolving fund for stop gap arrangement in case of delay in release of funds for all schemes so as to ensure timely payments as per provisions of the act," the mission, headed by former secretary to the Government of India Aruna Sharma, said in its report submitted to the ministry.


A revolving fund is an account that does not lapse at the end of a financial year and is available to finance operations throughout. NREGS is a demand driven scheme and is 100% funded by the Centre, though disbursement is routed through states. A revolving fund would ensure continuous funds to the scheme.

The report suggested merger of schemes working towards similar objectives to avoid thin spread of resources and duplication of efforts. It also batted for enhancing manpower and building capacity at ground level.