Only 52 per cent MGNREGS works completed in five years: CAG flags gaps in Maharashtra
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Context
A recent report by the Comptroller and Auditor General of India (CAG) has revealed major inefficiencies in the implementation of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in Maharashtra. The report, covering the period from 2019-20 to 2023-24, found that only about 52% of the works initiated under the scheme were completed. This highlights significant gaps in planning, execution, and monitoring, leading to wasteful expenditure and undermining the core objectives of this crucial rural employment program.
UPSC Perspectives
Governance & Accountability
This report is a textbook example of the Comptroller and Auditor General (CAG) performing its constitutional role as the guardian of the public purse. Established under of the Constitution, the CAG is an independent authority responsible for auditing all government expenditures to ensure financial accountability of the executive to the Parliament. The CAG's findings in Maharashtra go beyond mere financial accounting, representing a performance audit, which evaluates whether government schemes are achieving their objectives efficiently and effectively. The finding that 47% of works are incomplete or haven't started, with some pending for over three years, points to a severe failure in implementation governance and project management. These audit reports are examined by the , creating a crucial link for legislative oversight and holding the government answerable for its performance failures. The report also noted that the Maharashtra State Employment Guarantee Council, meant to monitor the scheme, did not meet regularly, further weakening oversight.
Economic
The is a powerful instrument of fiscal policy designed as a demand-driven wage employment programme to guarantee 100 days of work to rural households. Its primary economic function is to act as a social safety net, provide a source of income, and stimulate rural demand. A critical secondary objective is the creation of durable assets, such as roads, ponds, and water conservation structures, which improve agricultural productivity and rural infrastructure. The CAG report's finding that a massive ₹5,361.02 crore was spent on incomplete works signifies a colossal waste of public funds and a failure to create these assets. This represents a very low return on investment for the state. The audit also highlighted extremely low payment of mandated unemployment allowance (only ₹2,268 paid out of ₹34.85 lakh due), which nullifies the scheme's promise as a legal entitlement and fails to provide a timely economic buffer to the rural poor.
Social & Ethical
The report's findings reveal a critical breakdown in the Social Audit mechanism, a key feature for transparency and accountability mandated by Section 17 of the MGNREGA. Social audit empowers the Gram Sabha and local community to scrutinize official records and verify work on the ground, making it a cornerstone of participatory governance. The CAG found that social audit coverage in Maharashtra was extremely poor, with shortfalls ranging from 72% to 95% across gram panchayats. This lack of community oversight allows inefficiencies and potential corruption to go unchecked, denying vulnerable populations their legal Right to Work, which the Supreme Court has interpreted as an integral part of the fundamental . The failure to complete projects, pay wages on time, and conduct social audits reflects a deep-seated ethical issue of a lack of probity in governance and a failure of the state machinery to deliver on its promises to the most marginalized sections of society.