Report No. 6 of 2013 - Performance Audit of Mahatma Gandhi National Rural Employment Guarantee Scheme of Union Government, Ministry of Rural Development

Date on which Report Tabled:
Tue 23 Apr, 2013
Date of sending the report to Government:
Government Type:
Union Department
Sector Agriculture and Rural Development


The Mahatma Gandhi National Rural Employment Guarantee Act, (MGNREGA) was enacted with the objective of enhancing livelihood security in rural areas by providing at least 100 days  of  guaranteed  wage  employment  in  a  financial  year,  to  every  household  whose  adult members volunteer to do unskilled manual work. The Act initially came into force in 200 districts with effect from 2 February 2006 and was expanded to cover all the rural districts by 1 April 2008.

This is the second performance audit of the Scheme. The first performance audit was undertaken in 2007-08. The period of coverage of the first audit was February 2006 to March 2007. The present performance audit of the implementation of MGNREGA was taken up in response to a request from the Ministry of Rural Development and covers the period from April 2007 to March 2012. Implementation of the Scheme was checked in 3,848 gram panchayats in 28 states and four union territories.

Analysis of data related to the performance of the Scheme showed that there has been significant decline in per rural household employment generation in the last two years. The per rural household employment, declined from 54 days in 2009-10 to 43 days in 2011-12. There was also a substantial decline in the proportion of works completed in 2011-12. It was also seen that Bihar, Maharashtra and Uttar Pradesh, which together account for 46 per cent of the rural poor, utilised only about 20 per cent of the Central Scheme funds. This indicated that the correlation between poverty levels and implementation of MGNREGA was not very high.

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