Lok Sabha Question No. 2402 (UNSTARRED), answered on 2024-08-06
Subject: Improvement in Financial Management System of MGNREGS
Ministry: RURAL DEVELOPMENT
Asked by: Dr. M P Abdussamad Samadani

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT

## DEPARTMENT OF RURAL DEVELOPMENT

## LOK  SABHA UNSTARRED QUESTION NO. 2402 ANSWERED ON 06/08/2024

IMPROVEMENT IN FINANCIAL MANAGEMENT SYSTEM OF MGNREGS

## 2402 DR. M P ABDUSSAMAD SAMADANI:

Will the Minister of RURAL DEVELOPMENTbe pleased to state:

- (a) whether the Government is aware of the need to improve the financial  managementsystem  of  Mahatma  Gandhi  National Rural  Employment Guarantee Scheme (MGNREGS) byensuring the regular transfer of funds to States and the timely release of funds to implementingagencies;
- (b)
- if so, the details thereof;
- (c) whether  the  Government  is  aware  of  the  hardships  faced  by workers under MGNREGSdue to indefinite delays in wages and the  issues  faced  by  local  self-governments  andimplementing agencies due to this; and
- (d) if  so,  whether  the  Government  has  any  plan  to  improve  the transparency  and  efficiency  ofthe  wage  payment  process, including  the  use  of  digital  tools  and  platforms  to  track payments andprevent delays?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (SHRI KAMLESH PASWAN)

(a)&(b):       Mahatma Gandhi National Rural Employment Guarantee Scheme  (Mahatma  Gandhi  NREGS)  is  a  demand  driven  wage employment Scheme. Funds release to States/UTs is a continuous process  and  Central  Government  is  committed  to  making  funds available to States/UTs for the implementation of the Scheme as per the demand for work on the ground.

Under  Mahatma  Gandhi  NREGS,  States/UTs  furnish  funds  release proposals  to  Government  of  India.  The  Ministry  releases  funds periodically in two tranches with each tranche consisting of one or more installments, keeping in view the 'agreed to' Labour Budget, demand  for  works,  opening  balance,  pace  of  utilization  of  funds, pending liabilities, overall performance and subject to submission of relevant documents by the States/UTs.

The  following  measures  have  been  taken  to  ensure  the  regular transfer  of  funds  to  States  and  the  timely  release  of  funds  to implementing agencies:

1. Public Financial Management System (PFMS): The government has implemented the PFMS to monitor and ensure the efficient and timely transfer of funds. This system helps in tracking the fund flow in real-time and ensures transparency.
2. Direct  Benefit  Transfer  (DBT):  Wages  under  Mahatma  Gandhi NREGS are paid directly into the bank accounts of beneficiaries through the DBT system. This minimizes delays and ensures timely payments.
3. Monitoring  and  Coordination:  Regular  reviews  and  meetings are conducted with State governments and other stakeholders to monitor the fund flow and address any issues promptly.
4. Grievance Redressal Mechanism: A robust grievance redressal mechanism  is  in  place  to  address  any  issues  related  to  the delay in fund transfer and release.

(c)&(d):        As  per  the  provision  of  the  Mahatma  Gandhi  National Rural Employment Guarantee Act, the beneficiaries are entitled to get  wage  payments  within  15  days.  Government  of  India  has  also issued a detailed Standard Operating Procedure (SOP) to the States to  ensure  timely  wage  payment.  The  Ministry  along  with  the States/UTs  have  been  making  concerted  efforts  for  improving  the timely payment of wages. States/UTs have been advised to generate pay orders in time. The Ministry has taken various steps to ensure timely  payment  of  wages  to  workers  under  the  Mahatma  Gandhi

NREGS. These include:

(i) Implementation of National Electronic Fund Management System (Ne-FMS). It has since been implemented in all States and 3 Union Territories.

(ii) Intensive consultation with State Governments and other stakeholders  to  ensure  timely  payment  of  wages,  verification  of pending compensation claims etc.

(iii)  Formulation of Standard Operating Procedure for monitoring of timely payment of wages and payment of delay compensation.

(iv) States/UTs are regularly requested to ensure the timely regeneration  of  rejected  transactions  and  correction  of  invalid accounts as per information provided by PFMS.

(v) Aadhaar Based Payment System (ABPS) has been made mandatory since January 1, 2024, to ensure faster, safer, and timely wage disbursement to beneficiaries under Mahatma Gandhi NREGS.

(vi)  Capturing  of  real-time  attendance  through  the  National  Mobile Monitoring System (NMMS).

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