Union Minister for Rural Development Jai Ram Ramesh on Tuesday said social audit and CAG audit report would come in handy to maintain better vigil and to rein in corruption in MNREGA and Indira Awas Yojna (IAY).

Talking to reporters during a two-day visit to the state, Ramesh said the annual expenditure of the union rural development ministry was to the tune of over Rs 88,500 crore and they have decided to involve CAG for proper evaluation of the expenditure.

Social audit and audit by CAG will rein in corruption in the flagship programme, he said.

Referring to Bihar CM Nitish Kumar's recent statement, Ramesh said the CM had alleged that the mukhiya and representatives of other panchayati raj institutions were involved in misuse of funds under MNREGA and IAY and were buying luxury vehicles.

Stating that Kumar had reiterated it three months back also, Ramesh said, "We felt that the state government should also keep strict vigil to avoid misuse of the funds under MNREGA and IAY".

Describing this as a matter of serious concern, he said MNREGA was a demand-based scheme and the Centre used to provide funds on the basis of the demands of the states

Expressing unhappiness over states like Bihar, Jharkhand and Odisha lagging behind in the execution of MNREGA, he said MNREGA was meant for extremely poor states.