The Union Cabinet on Wednesday approved release
of wages directly to the
accounts of the workers engaged under the Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA).
The Cabinet, chaired by Prime Minister Narendra
Modi, approved the scheme for better implementation of the MNREGA and provide
empowerment of states.
As per the scheme, the wage component of MGNREGA
will be released following the State Employment Guarantee Fund window direct to
the worker's accounts based on a fund transfer order to be generated by states'
implementing agencies in accordance with procedures prescribed by Rural
Development Ministry.
The move is aimed at further streamlining the
fund flow system and to empower state governments or grass-root implementation
agencies to deliver entitlements as per the objectives of the Act.
The proposed system would benefit all stakeholders
and improve overall efficiency of implementation and workers would be assured
of payment of wages in the second day of the pay order generation, official
sources said.
The scheme will also ensure bring greater transparency in movement of funds and
lesser levels of corruption in MNREGA.
They said while state governments would be able
to spend more time in planning and improving the process efficiency, without
bothering to manage funds for implementation, while the Central government
would gain by releasing what is actually expendable.
The gram panchayats would also be empowered to
take up work according to the agreed labour budget, without struggling for
release of funds.
Sources say that despite implementation of the
electronic fund management system (e-FMS), delays in payments have been
increasing due to delays in release of funds by Central government, multi-level
release system, continued parking of funds at various levels and inability of
implementation agencies to get funds in time for payment.
This, they added, called for further steps to improve the system
to assure timely availability of funds as per demand.
DNA