A.P. exceeded entitlement by Rs. 500 crore and sought reimbursement

After the Andhra Pradesh government violated the provisions of the Mahatma Gandhi National Rural Employment Guarantee Act by providing work to households in excess of the legal entitlement of 100 days, Union Minister for Rural Development Jairam Ramesh has asked the Comptroller and Auditor General to conduct a performance audit in 12 States that had made the greatest expenditure under the scheme.

In his letter to the CAG Vinod Rai, Mr. Ramesh expressed serious concerns about the manner in which MGNREGS money was being spent and pointed out the grey areas that his audit performance should also focus on.

Andhra Pradesh made the excess expenditure of Rs. 500 crore during 2010-11 and has asked the Union government to reimburse the money.

In several States, the material-labour ratio of 40:60 of expenditure under the MGNREGS has been breached; Pucca works have been executed at individual project cost in several cases.

States have also deviated in the calculation of wage rates per quantum of work.

Mr. Ramesh pointed out that the tasks assigned for the wage payment of one man-day of labour under the MGNREGS was much less than that prescribed under State schemes, which led to a greater outgo of Central funds.

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