CAG flags MGNREGA failures in J&K

Srinagar, Oct 5: Of the 27.14 lakh works planned under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in Jammu and Kashmir between 2019-20 and 2023-24, only 20.16 lakh works were taken up for execution, while just 5.34 lakh were completed, according to the Comptroller and Auditor General of India (CAG).
The CAG, in its report for the period ending March 2024, noted that 14.82 lakh works remained incomplete, accounting for nearly 74 per cent of the works taken up during the period.
The audit further found that Rs 1,897.10 crore had been incurred on these incomplete works as of March 2024.
The reasons for the non-completion of the works could not be established from the records made available to the audit, the CAG observed. The report was recently tabled by the Jammu and Kashmir Government in the Legislative Assembly.
The audit also pointed to substantial pending liabilities under the scheme. As of March 2024, an amount of Rs 704.39 crore remained unpaid, comprising Rs 49.19 crore towards unskilled wages, Rs 646.92 crore towards material and semi-skilled/skilled wages, and Rs 8.28 crore in administrative expenses.
The report noted that against expenditure of Rs 1,333.25 crore incurred on material, including skilled and semi-skilled wages, during 2019-20 to 2023-24, nearly half—Rs 646.92 crore or 49 per cent—was still outstanding. The pending payments had remained unsettled for periods ranging from one to five years.
According to the audit, the prolonged pendency reflected shortcomings in the financial management of the scheme, particularly in settling payments related to material procurement and wages within prescribed timelines.
The CAG noted that as per conditions attached to sanction orders issued by the Government of India, the UT administration was required to transfer MGNREGA funds to the State Employment Guarantee Fund (SEGF) within three to 15 days of receiving the funds.
Audit findings revealed that the release of funds by the J&K Finance Department was delayed on several occasions. During 2019-20 to 2023-24, the release of Rs 2,150.39 crore to the SEGF was delayed by periods ranging from four to 122 days. The audit noted that these delays could have attracted interest liability of Rs 44.18 crore, though records did not show that such interest had been claimed.
The audit highlighted a large number of rejected transactions under MGNREGS in J&K, with the majority relating to wage payments to unskilled workers.
According to the findings, 3,16,178 transactions were rejected between 2019-20 and 2023-24. Of these, 2,83,196 transactions (around 90 per cent) involved unskilled workers’ wages amounting to Rs 48.91 crore.
The audit attributed the rejections mainly to dormant bank accounts, changes in bank accounts, discrepancies in IFSC codes, incorrect bank account details and failure to link beneficiaries’ Aadhaar with their accounts.
Of the 3,16,178 rejected transactions involving Rs 77.24 crore, only 2,67,321 transactions worth Rs 65.45 crore were regenerated. However, 40,349 transactions involving Rs 8.26 crore were still pending at the bank level as of March 2024, with no reasons recorded for the delay.
The audit also assessed the implementation of one of the key objectives of MGNREGS—providing up to 100 days of guaranteed wage employment annually to rural households.
During 2019-20 to 2023-24, 37,82,594 households demanded employment under the scheme, of which 34,99,449 households (93 per cent) were provided employment.
However, the audit found that only 77,512 households, constituting about two per cent of those demanding work, received the mandated 100 days of employment during the five-year period.
The audit observed that the non-payment of wages, material costs and administrative charges due to rejected transactions led to the accumulation of pending liabilities. It further noted that vendors were also facing difficulties, as payments due to them had accumulated to several crores of rupees each year. (KNO)