The Cabinet Committee on Economic Affairs (CCEA) on Wednesday gave its approval for direct release of wages to workers under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with the view to better implementation by and empowerment of States.

An official statement said that the move will improve overall efficiency in implementation while workers are assured of wage payments on the second day of the pay order generation.

Despite implementation of the electronic Fund Management System (e-FMS) earlier, delays were recorded in release of funds by the Centre, parked funds at various levels and inability to get funds in time for payment.

The wage component of the MGNREGA, which is the responsibility of the Centre, will be released following the State Employment Guarantee Fund window, direct to workers’ accounts based on a transfer order to be generated by States’ implementing agencies as per the procedures laid out by the Rural Development Ministry.

“Gram panchayats would be empowered to take up work according to the agreed Labour Budget without struggling for release of funds. State Governments would be able to spend more time in planning and improving the process efficiency, without the botheration of trying to manage funds for implementation,” the statement said of the CCEA decision.

It added that the Centre would gain by releasing “what is actually expended” and “there will be greater transparency in movement of funds and lesser levels of corruption”.

Related Topics