Union Secy takes serious note, warns to block release of more funds

Mohinder Verma

JAMMU, Apr 23: Union Ministry of Rural Development has taken serious note of non-compliance of its directives by the Jammu and Kashmir Government on transfer of funds sanctioned under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The Ministry has made it clear that it would be compelled to block release of more funds in case of further delay in ensuring conformity of the laid down provisions.
The system of release of funds for MGNREGS has been changed from April 1, 2014 and the funds are now being directly released to State Consolidated Fund (SCF) for the transfer of same to the State Employment Guarantee Fund (SEGF) within three days from the date of transfer to the SCF. This has been done by the Union Ministry to grant greater control to the State Governments in implementation of the scheme.
In an official communiqué to the Chief Secretary, Mohd Iqbal Khandey dated April 22, Secretary, Department of Rural Development of Union Ministry of Rural Development, L C Goyal has said, “it has been noticed that the amounts released for the year 2014-15 by the Ministry on April 4, 2014 have yet not been transferred by the Finance Department of J&K Government to the SEGF”.
“This will adversely impact the implementation of the programme, especially during the peak working session. Not only would the workers lose their employment support in this season also the State is not likely to be given further funds for MGNREGS, if the funds are not released immediately to the SEGF”, said the communiqué, the copy of which is available with EXCELSIOR.
The Union Secretary has asked the Chief Secretary to instruct the Finance Department to release forthwith the funds credited to the State Consolidated Fund for implementation of MGNREGS. “As has already been stated in the Sanction Order, no more funds would be released to the State under MGNREGS unless this is done immediately”, the Union Secretary said, adding “the State has also to pay a penal interest of 12% in the event of non-transfer of funds for the programme implementation within the stipulated three days”.
It is pertinent to mention here that the Empowered Committee of Union Ministry has sanctioned 288.20 lakh persondays as Labour Budget for Jammu and Kashmir for the financial year 2014-15.
Official sources said that the new system called Expenditure-based Fund Release System has been introduced from April 1, 2014 with a view to optimize the fund utilization and to avoid parking of funds.
Under the EFRS, only funds that are spent and recorded in MIS are released so that at any point of time, the State has funds for running the programme. Since the releases are based on the MIS data which is voucher-based including details of the muster rolls and the measurements, the EFRS is aimed at not only reducing the unspent balances but also bringing transparency and accountability in implementation of the scheme.
Like other Centrally sponsored schemes, the provisions of MGNREGS are not being strictly complied with by the concerned authorities of the State, sources said while disclosing that in the recent past the Ministry had directed the State to clear all the pending liabilities on wage payment pertaining to 2012-13 and 2013-14 financial year.
“However, the liabilities still exist and the same run in Rs 20 crore to Rs 40 crore in several districts of the State”, sources disclosed, adding “there is also no compliance of the directives regarding notification of rules for payment of unemployment allowance and drawing of relevant procedure for payment of allowances to the eligible MGNREGS workers”.
The Ministry had also stressed the need for proper implementation of the system of compensation for delay in wage payment but no action has been taken to implement even this directive, sources said, adding “the appointment of Ombudsman, which is imperative to look into the complaints relating to the implementation of this scheme, has not found any due attention till date”.

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