Delays in planning, weak monitoring, incomplete works, and limited livelihood impact raise concerns over effectiveness of rural employment guarantee scheme
The Performance Audit of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in Maharashtra has revealed significant gaps in planning, execution, and monitoring, raising concerns about the scheme’s effectiveness in delivering sustainable livelihood security.
Originally enacted as the National Rural Employment Guarantee Act in 2005 and later renamed, MGNREGS aims to provide at least 100 days of guaranteed wage employment annually to rural households. Maharashtra, a pioneer in employment guarantee legislation since 1977, aligned its State law with the central framework over time.
The audit, covering the period from 2019–20 to 2023–24 across six districts—Ahilyanagar, Amravati, Chhatrapati Sambhajinagar, Dharashiv, Nagpur, and Palghar assessed planning processes, financial management, employment generation, asset creation, and monitoring mechanisms.
Key Findings
1. Planning and Financial Management weaknesses
Delays were observed in submission of Annual Action Plans and Labour Budgets, which also lacked realistic projections of work demand.
No baseline surveys were conducted to assess employment needs at the gram panchayat level.
Critical staffing gaps persisted, with over 2,258 Gram Panchayats lacking Gram Rozgar Sahayaks out of 28,279 gram panchayat’s in the state.
While Rs 13,518 crore was spent out of Rs 13,957 crore available, delays of up to 242 days were noted in the release of the State’s share amounting to Rs 415.73 crore (45 per cent), out of Rs 926.51 crore released during 2022-23 and 2023-24.
2. Employment Generation falls short of mandate
Although registered households increased by 46%, only 19% demanded employment.
Of those who worked, just 8.7% completed 100 days of employment, undermining the scheme’s core objective. Out of 19.65 lakh households (average of the five years) which availed employment during 2019-20 to 2023-24, only 1.71 lakh households (8.70 per cent) have availed employment of 100 days and above
Door-to-door identification surveys were not conducted in nearly half of the audited Gram Panchayats.
3. Irregularities in worker registration and wage payments
Poor record-keeping was widespread, with application registers missing in 47 out of 48 sampled Gram Panchayats.
Over 50% of job cards were issued with delays; duplicate entries were also detected due to system gaps.
Despite Rs 34.85 lakh in unemployment allowance being due, only Rs 2,268 was actually paid. The NREGASoft, a web-enabled application, did not have checks to prevent registration of job cards having the same name of the head of the household.
Wage delays affected workers, with compensation claims worth Rs 5.88 crore rejected on account of natural calamities and compensation not due, though there was no provision under Maharashtra Employment Guarantee Act for such rejection
Compensation was also payable for any delay in payment of compensation for delay in payment of wages. However, neither NREGASoft had provision to calculate such compensation nor did the State Government work out the amount payable on delay in payment of such compensation
Rs 35.32 crore in wages remained unpaid as of October 2024.
Separate Schedule of Rates for women, the elderly, people with disabilities and people with debilitating ailments were not prepared by the state government as stipulated in Maharashtra Employment Guarantee Act.
Audit scrutiny of convergence work revealed generation of muster rolls and payment of Rs 51.82 lakh to workers even after the date of completion of works under Pradhan Mantri Awaas Yojana in the selected 48 Gram Panchayats.
4. Execution of works shows major backlogs
Of 25.72 lakh approved works, nearly 47% were either incomplete or not started. The State Government had not fixed the cap on the number of works that could be taken up at any given time in the GPs.
Legacy incomplete works from prior years added to the backlog.
Transparency measures were weak 65% of worksites lacked display boards, and 30% of works were not geo-tagged.
Outstanding liabilities for materials and skilled labour stood at Rs 541.92 crore.
5. Monitoring and accountability mechanisms ineffective
The State Employment Guarantee Council did not meet regularly, weakening oversight.
State Quality Monitors (SQM) for each district were not appointed.
Social audit coverage was critically low, with shortfalls ranging from 72.43 % to 95.67%.
Out of Rs 11.22 crore to be recovered in 1,084 misappropriation cases pointed out by the Social Audit Unit during 2019-20 to 2023-24, action for recovery in 314 cases amounting to Rs 4.44 crore was pending.
No evaluation study was conducted to assess the scheme’s impact on livelihoods and income levels.
CAG has recommended that:
1. The Government take appropriate action to conduct baseline survey to ensure assessment of quantum and timing of demand of works to be included in the Annual action plan and labour budget.
2. The Government take action to appoint Gram Rozgar Sahayaks in all Gram Panchayats, to strengthen the execution and monitoring capacity at the grassroots level.
3. The Government Issue directions to all the Gram Panchayats to issue job cards as per the time specified in Maharashtra Employment Guarantee Act and also take prompt action to delete duplicate job cards registered.
4. The Government ensure that the unemployment allowance, compensation for delay in payment of wages is paid as per the provisions of Maharashtra Employment Guarantee Act.
5. The Government strengthen monitoring and set up a suitable mechanism to prevent generation of muster rolls after completion date of works under Pradhan Mantri Awaas Yojna.
6. The Government issue directions to follow the prescribed provisions for sanctioning of new works in Gram Panchayats.
7. The Government expedite the appointment of State Quality Monitors in all districts.
8. The Government conduct Social Audits as per prescribed norms and may expedite the recovery of financial misappropriation pointed out by the Social Audit Unit as per the provisions of Maharashtra Employment Guarantee Act.
