Centre seeks direct control of NREGA wages to cut graft, pilferage

By Ravish Tiwari

NEW DELHI: With an eye to streamline fund releases, cut pilferage and minimise “corruption” in the largest welfare scheme, the Rural Development Ministry has moved a cabinet proposal seeking approval to disburse over Rs 24,000 crore of annual wage payments directly from central government into the accounts of NREGA beneficiaries across the country.

The ministry and Expenditure departments have already held consultation on this issue. During the meeting it was decided that the Rural Development Ministry should consult states as they implement the scheme across the country.

Consequently, Rural Development Ministry has written to all the state governments seeking their written response to the proposal that amounts to divesting state governments of authority to disburse wage payments and authorise central government to pay it directly to the beneficiaries. “The workers would be assured of payment of wages on the 2nd day of the pay order generation.

The Gram Panchayats would be empowered to take up work as per the agreed Labour Budget without struggling for release of funds. The states would be able to spend more time in planning and improving the process efficiency without the bother of trying to manage funds for implementations. The Central Government would gain by releasing what is actually expended. There will be greater transparency in movement of funds and lesser levels of corruption,” reads the central governments note about the “benefits of the system” proposed to the States.