Lok Sabha Question No. 2535 (UNSTARRED), answered on 2025-08-05
Subject: Audit of MGNREGS
Ministry: RURAL DEVELOPMENT
Asked by: Shri Sudama Prasad

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT

## LOK SABHA UNSTARRED QUESTION NO. 2535 ANSWERED ON 05/08/2025

## AUDIT OF MGNREGS

## 2535. Shri Sudama Prasad:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) whether the Ministry has not conducted Performance Audit of Mahatma Gandhi National Rural Employment Guarantee Scheme  (MGNREGS)  during  the  last  ten  years,  if  so,  the reasons therefor;
- (b) whether the Government proposes to conduct a Performance Audit of MGNREGS, and if so, the timeline for its initiation and completion;
- (c) whether the Government conducted any internal assessments regarding  the  implementation,  effectiveness,  and  impact  of MGNREGS in States, if so,  the  details  thereof  and  if  not,  the reasons therefor; and
- (d) whether the Government constituted any committee to assess the impact of MGNREGS performance, including fund utilization, job creation, wage disbursement and others during the  last  ten  years,  if  so,  the  details  of  the  committee  report
- and the action taken thereon?

## ANSWER

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

(a)&(b):  It  is  stated  that  performance  audit  is  conducted  by  the Comptroller & Auditor General of India to assess the outcome of the implementation of the scheme.

The  Internal  Audit  Wing  (IAW)  under  the  Office  of  the  Chief Controller of Accounts  (CCA) has been conducting Risk-Based Internal  Audits  of  MGNREGS  implementation  in  states  since  FY 2013-14. These audits are carried out at the district level and are designed to assess risk areas based on likelihood and impact. They

evaluate the robustness of internal controls, procedural compliance, for strengthening of scheme governance. Risk Based Internal audits of Mahatma Gandhi NREGS have been conducted in 225 districts of 30

fund flows, and other operational aspects to suggest states/UTs since 2013-14.

In  addition  to  this,  Social  Audit  is  conducted  by  the  Gram Sabha as mandated under Mahatma Gandhi NREGA, 2005 in order to ensure transparency and accountability in scheme implementation. To institutionalize a robust framework, the Ministry of Rural Development,  in  consultation  with  the  Comptroller  and  Auditor General of India (C&AG), notified the Audit of Scheme Rules, 2011 detailing  the  methodology,  principles,  and  standards  for  audits. Further,  a  Task  Force  has  been  constituted  jointly  by  MoRD  and C&AG in June 2015, whose recommendations led to formulation of Auditing  Standards  for  Social  Audit  for  effective  and  communitydriven audits.

(c)&(d):  NITI  Aayog  had  conducted  an  Evaluation  Study  of  six Centrally Sponsored Schemes,  including Mahatma Gandhi NREGS in financial  year  2019-20.  The  study  focused  on  the  effectiveness, efficiency,  impact,  and  sustainability  of  these  schemes,  including the Mahatma Gandhi NREGS, to gauge their overall contribution to the national rural economy. Some of the findings of this study are as below:

1. Mahatma Gandhi NREGS has significantly enhanced livelihood security for rural households, acting as a crucial social safety net
2. that protects them against economic and agricultural shocks.
2.  A  significant  reduction  has  been  observed  in  distress  and seasonal migration due to the availability of work opportunities
4. within villages through the Mahatma Gandhi NREGS.
3.  Mahatma  Gandhi  NREGS  has  contributed  to  the  creation  of durable community assets and rural infrastructure, which in turn
6. support sustainable livelihoods and improve living conditions.
4.  The  scheme  has  fostered  environmental  sustainability  by creating  "green  jobs"  that  contribute  to  ecosystem  protection, climate change mitigation, and adaptation.

Further,  Amarjeet  Sinha  Committee  was  constituted  in  2021  to examine various factors affecting demand for wage employment in the rural sector in different parts of country and to study/analyze the trends of expenditure across States under Mahatma Gandhi NREGS along with reasons for inter-state variations with specific focus on

governance  issues.  The  report  of  the  Committee  has  since  been received and some of the recommendations have been identified for appropriate action.

In addition to this, Development, Monitoring and Evaluation Office (DMEO), NITI Aayog also has recently taken up an Evaluation Study of Mahatma Gandhi NREGS.

The Ministry regularly reviews the performance of the implementation  of  Mahatma  Gandhi  in  States/UTs  through  various fora viz., Mid-Term Review, Labour Budget meetings, Labour Budget Revision meetings, Programme Review meetings. Central Employment  Guarantee  Council  and  State  Employment  Guarantee Councils  periodically  monitor  implementation  of  the  programme. Technical Cells  have  also  been  constituted  at  various  level  in  the States to regularly monitor the progress of works.

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