MGNREGA: J&K spent more than 40% on material components during FY 2016-17, 2017-18

RDD Dept terms release of funds devoid of merit, rejects petition accordingly

SRINAGAR: During the financial year of 2016-17 and 2017-18, under Mahatma Gandhi NREGA, Jammu and Kashmir spent more than 40% on the material component which is against the operational guidelines of the scheme.
Mahatma Gandhi National Rural Employment Guarantee Act 2005 or MGNREGA, earlier known as the National Rural Employment Guarantee Act or NREGA, is an Indian labour law and social security measure that aims to guarantee the 'right to work'.
The issue came limelight after four different people/organizations pleaded that they have supplied the material for the execution of works under Mahatma Gandhi NREGA to different Gram Panchayats/Blocks falling under different Districts during the FY 2016-17 & 2017-18;
After supplying material the petitioners have raised their bills/vouchers to concerned official respondents for making payments as per procedures in vogue. However, the payments have not been made by the concerned GP/Block/District and the same is still pending without any reason or justification.
The matter has been examined by the Rural Development Department.
As per Chapter 7.4.1 of Operational Guidelines 2013 of MGNREGA and Chapter 7.1.2 Annual Master Circular 2017-18 of MGNREGA and reiterated in Annual Master Circular of 2021-22 "the ratio of wage costs to material costs should be no less than the minimum norm of 60:40 stipulated in the Act.
The 60:40 ratio for wage and material costs should be maintained at the GP level for all works to be taken up by GP and for works to be taken by all other agencies it should be maintained at the Block/ Intermediate Panchayat level.
In order to ensure that all districts get 40% of funds under the Material Component as per the Person days generated irrespective of the approved LB which is indicative in nature vide Government Order No: 126 RD of 2011 Dated: 18-05-2018 Followed by Government Order No: 208 RD of 2018 Dated: 14-08-2018 (Annexure-B) funds were released to all the Districts for clearing the material liabilities accrued under MGNREGA from the year 2015-16 to 2017-18.
Whereas, with respect to Jammu & Kashmir the Labour Budgets like other financial years have also been prepared for the Years 2015-16 to 2017-18 as per the procedure referred to in the Para above. The District wise person-days generated, admissible material component and funds released under the said component is.
Whereas, it can be seen that the admissible material component (@ 40%) of all the Districts, of the years 2015-16 to 2017-18 respectively has been released in full. It was expected as per the Guidelines and instructions conveyed by the Ministry of Rural Development, Government of India and this Department that the Districts while implementing the scheme will ensure that all the directions conveyed in the release orders/authorizations inter-alia with respect to maintaining 60:40 ratio for wage and material will be implemented in letter and spirit;
In order to address the representations received from different quarters the matter was taken up with Director Rural Development Jammu/Kashmir and all Deputy Commissioners. Upon receiving the reports it has been found that for the FY 2016-17, the UT has made a total expenditure of 815.70cr. Out of this expenditure, the UT has spent Rs 381.8344 cr. on wages which is 46.8% of the total expenditure and 376.64 cr. on the material component which is 46.2% of the expenditure.
As such the UT has already spent more than 40% on material components for the financial year 2016-17 in violation of the norms under MGNREGA and hence the additional liabilities will come under Violation of the 60:40 ratio.
Similarly, for FY 2017-18, the UT has made a total expenditure of 1158.27cr. Out of this expenditure, the UT has spent Rs 620.28 cr. on wages which is 53.5% of the total expenditure and 473.34 cr. on the material component which is 40.86% of the expenditure. As such the UT has already spent more than 40% on material Components for the financial year 2017-18 and hence the additional liabilities over and above this capping come under violation.
“Now, therefore, in view of the above, the claims of the Districts in view of the provisions envisaged in the Mahatma Gandhi National Rural Employment Guarantee Act, further reaffirmed in operational Guidelines, Master Circulars of the Scheme from time to time and subsequent fund releases through series of orders from Ministry of Rural Development and this Department, have been found devoid of merit and accordingly rejected”, reads the order issued by Rural Development Department.