Lok Sabha Question No. 1878 (UNSTARRED), answered on 2016-07-28
Subject: Source of Income of Panchayats
Ministry: PANCHAYATI RAJ
Asked by: P. KUMAR

## GOVERNMENT OF INDIA MINISTRY OF PANCHAYATI RAJ

## LOK SABHA UNSTARRED QUESTION NO. 1878

TO BE ANSWERED ON  28.07.2016

## SOURCE OF INCOME OF PANCHAYATS

## 1878. SHRI  P.KUMAR

Will the Minister of PANCHAYATI RAJ be pleased to state:

- a) whether there is any proposal to increase the sources of income of the village Panchayats along with the measures to strengthen the Panchayati Raj Institutions (PRIs); and
- b) whether Government is aware of the fact that rural development has been affected after implementation of MGNREGA and if so, the details thereof and the manner in which PRIs would be strengthened?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF PANCHAYATI RAJ (SHRI PARSHOTTAM RUPALA)

(a):    Article  243H of the Constitution bestows upon the Legislature of  the State the powers to authorize a Panchayat to levy, collect and appropriate taxes, duties, tolls and fees in accordance with  such  procedure  and  limits  as  may  be  specified  in  law.  Under  the    Fourteenth  Finance Commission award, grants to the tune of Rs. 2,00,292.20 crore have been devolved to the Gram Panchayats (GPs) for the period 2015-20 to ensure stable flow of funds at regular intervals to augment their resources to provide basis services as devolved.

- (b):    The  objective  of  Mahatma  Gandhi  National  Rural  Employment  Guarantee  Scheme (MGNREGS) is to bring about overall improvement in the quality of life in rural areas through guaranteed  employment  generation  and  development  of  rural  infrastructure.  The  scheme  has reduced  rural  distress  migration  among  rural  poor;  smoothened  rural  consumption  in  the  lean season; set high standards in transparency; addressed under-employment problem; created assets that improved livelihoods; gave boost to the financial inclusion; strengthened GPs; improved the wage levels in rural areas; set standards for decent working conditions; and helped in bringing fallow lands into cultivation.

Panchayats have been given a pivotal role in the planning and implementation of projects under MGNREGS. The Act provides that GPs shall be responsible for identification of projects to  be  taken  up  under  the  scheme  as  per  the  recommendations  of  the  Gram  Sabha  and  Ward Sabhas  and  the  Panchayats  at  district,  intermediate  and  village  levels  shall  be  the  principal authorities for planning and implementation of the projects made under the scheme. Major steps taken  by  the  Government  to  improve  the  programme  implementation  under  MGNREGS  are given at Annexe .

(Referred in reply to part (b) of Lok Sabha Unstarred Question No.1878 answered on 28-7-2016)

Major steps taken by the Government to improve the programme implementation under MGNREGS

## Better planning and asset identification

-  An Intensive Participatory Planning Exercise (IPPE) /Mission Antyodaya has been launched in 2569 most backward blocks. This exercise has helped in identifying  better  quality  assets  that  need  to  be created.
-  For improving convergence with the line departments, and thereby to improve the quality of assets, the State Convergence Plans have been formulated.

## Improving the quality of works

-  The associated outcomes of each work are being recorded before taking up the work, and the same is being measured after completion of the work-thereby bringing in more focus on outcomes.
-  Ministry  has  conducted  training  of  Technical  Resource  Persons  from  the  States/UTs  on  different technical aspects of works which can be taken up under the scheme. States have been asked to train Block resource persons and district resource persons to form technical teams.
-  The  States/UTs  have  been  asked  to  deploy  State  Quality  Monitors  to  inspect  the  quality  of  assets created under the Scheme.
-  States have been advised to engage technical assistants/barefoot engineers for better technical planning and supervision of works under MGNREGS.

## Better transparency, accountability and grievance redressal

-  States/UTs have been asked to strengthen social audits of MGNREGS works in accordance with the provisions  of  the  Audit  of  Schemes  Rules  2011  issued  in  consultation  with  the  Comptroller  and Auditor General of India. Social Audit Action Plan has been formulated and shared with States.
-  All  States  have  been  requested  to  set  up  an  independent  Social  Audit  Unit  (SAU)  and  appoint Ombudsman at the district level for grievance redressal.
-  The Government has established a comprehensive system of monitoring and review mechanism for MGNREGS, which, inter alia, include visits of the Government Officers and National Level Monitors.
-  With a view to avoid bogus attendance and to check instances of tempering and misuse of muster rolls, the e-Muster system has been introduced.

## Fund management and avoiding delays in payment

The  Government  has  initiated  Electronic  Fund  Management  System  (e-FMS)  which  directly credits  the  wages  into  the  respective  beneficiary's  accounts  using  the  core  banking  system.  The  Central Government  has  also  started National  Electronic  Fund  Management  System (NeFMS) in  11  States (Assam,  Bihar,  Haryana,  Karnataka,  Kerala  Odisha  Punjab,  Rajasthan,  Tripura,  Uttar  Pradesh  and Uttarakhand) and  launched  Dashboard  for  tracking  of  pending  Fund  Transfer  Orders,  Public  Fund Management System, electronic Fund Management System, Direct Benefit Transfer etc.

## Project LIFE - MGNREGA

-  The  Government  has  launched  Project  Livelihood  in  Full  Employment-Mahatma  Gandhi  National Rural Employment Guarantee Act (Project LIFE- MGNREGA). It aims to plan and implement tailormade  livelihood  interventions  for  rural  households  in  convergence  with  National  Rural  Livelihood Mission (NRLM), Krishi Vigyan Kendras (KVKs) and Deen Dayal Updhyaya Grameen Kaushalya Yojna (DDU-GKY) thereby, converting them into skilled persons.
-  Focus on NRM and individual assets.

## Monitoring and Review Mechanism

-  The Scheme is regularly reviewed in the Performance Review Committee meetings, video-conferences and regional review meetings. State specific reviews are also undertaken from time to time. Officers and National Level Monitors also visit various districts to oversee the performance of MGNREGS.