Rural Development Min 'seeks' extra fund from FM under MGNREGA

Union Minister of Rural Development Birender Singh has sought an "additional fund of Rs 5,000 cr" from the Finance Ministry for the Mahatma Gandhi National Rural Employment Guarantee (MGNREGA) scheme.
According to a "letter", a copy of which was obtained by a group of activists, where Singh has "sought" from Finance Minister Arun Jaitley the extra fund, was today distributed to reporters at a press conference here.
"Since MGNREGA is a demand-driven wage employment programme and funds are required to be released to the states on demand being raised at field level, I request you to provide Rs 5,000 cr over and above the budget provision of Rs 34,699," Singh said in the correspondence.

According to the letter, dated December 30, 2015, Singh had also "informed" that a sum of Rs 33,448 crore has already been disbursed to states/Union Territories (UTs). Of these, states/UTs have already spent Rs 31,830 crore, the activists claimed.
RTI activist Nikhil Dey, of Suchna Evum Rozgar Adhikar Abhiyan, social activist Aruna Roy and economist Jayati Ghosh were among the activists who held the press meet today.
Citing the letter they alleged that there was a "shortfall of Rs 5,000 cr" under the MGNREGA scheme in this fiscal" and asked the Centre to pump that additional Rs 5,000 cr to it.

Expressing concern over the alleged shortfall of funds, the members further claimed that 12 states including some BJP-ruled like Chhattisgarh and Haryana have already reported "negative" balance and are not in a position to accept applications for more works under the programme.

According to the MGNREGA, it aims guaranteeing 100 days of wage-employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work.
"95 per cent money has already been spent, so there is no money. Twelve states including those led by BJP have negative balance. Today, there is point where we can not even pay Rs 100 crore to any state. That is the crisis point where we stand at.

"Rs 5,000 crore is only a breather, not sufficient. It will only ensure the programme is not going to collapse at least," Dey claimed.
Ghosh said even if the government is able to generate work during remaining period of the fiscal, it is "unlikely" to come "anywhere close" to levels of works generated in 2010-11 or 2011-12.
"Now, this is the context in which we need to understand the current squeeze. Any increase people are giving you is an increase that is based on last year," she claimed.
Roy said the "actual problems" will surface now after January when the "pinch of drought" will be experienced in parts of the country in the backdrop of "shortage" of funds.