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Updated: January 9, 2010 17:19 IST

CM urges PM to ensure release of NREGA funds

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Karnataka Chief Minister B.S. Yeddyurappa. File Photo: N. Sridharan
THE HINDU Karnataka Chief Minister B.S. Yeddyurappa. File Photo: N. Sridharan

Karnataka Chief Minister B.S. Yeddyurappa has sought the intervention of Prime Minister Manmohan Singh to ensure immediate release of balance funds of Rs. 1200 crore to the State under National Rural Employment Guarantee Act ‘as per the approved labour budget at the pre-revised wage rates.

In a letter addressed to the Prime Minister on Friday, he said the State had made good progress in implementation of NREGA during 2009-10.Out of the total funds available as on January 5, 2010, an expenditure of 75.24 per cent has been achieved.

The union government has revised the labour budget for the state for 2009-10 from Rs. 1084.72 crore to Rs. 2846.83 crore considering the state’s better performance,he said.

Though the understanding was that the amount would be released in two tranches, the State goverment, Yeddyurappa said, has been receiving the money in ‘small’ instalments from Centre. Even after revision of Labour Budget in Oct 2009, only three instalments have been released till now.

Despite taking up the matter with Secretary, Rural Development,only Rs. 121.25 crore has been released as the seventh tranche which is just about sufficient for a week. These ‘meagre’ releases are creating many problems in implementation of the scheme, he said.

Pointing out that expenditure during October 2009 was Rs. 249 crore and in November and December, it was Rs. 292 crore and Rs. 309 crore respectively, Yeddyurappa said, expenditure during the remaining months was likely to be Rs. 400-450 crore per month as the wage rates have also been revised.

Arrears of over Rs. 200 crore have to be paid because of the wage revision, he said and urged Prime Minister to intervene and ensure that the balance amount of Rs. 1200 crore ’as per the approved labour budget, at the pre-revised wage rates are made available to the State immediately.





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