CAG flags lapses in Kerala MGNREGS: ‘Poor planning, low asset creation, and declining work demand’

A CAG audit on the implementation of the Mahatma Gandhi National Rural Employment Guarantee (MGNREGS) in Kerala has flagged several alleged lapses, including low priority for asset creation, poor planning, and a lack of monitoring of the scheme. The audit report, tabled in the state Assembly on Tuesday, pertains to the period from 2020-21 to 2023-24. The report said demand for work has declined by 13.77% during the period, and as a result, the person-days of employment generated declined by 6%. Even after 19 years of sustained investment in the scheme, the report said there was an “inability to address persistent deficiencies in planning, execution, and monitoring of the scheme”. “Deficiencies in bottom-up planning, manpower shortages and delay in fund releases have collectively impeded the effective delivery of wage employment and asset creation. Low priority given to asset creation works, and instances of financial irregularities further underscore challenges in achieving and sustaining the scheme’s objectives,” it said. The report said the state had changed the nature of the demand-driven project by giving additional targets to village panchayats for the creation of individual assets, like the construction of cattle sheds, poultry sheds, etc., over and above the demand raised by beneficiaries, thereby infringing on the right of gram sabhas. This ultimately led to non-identification of beneficiaries by gram panchayats and non-implementation of 88.73% of individual projects included in their annual plan, the report said, adding that as a result, 16-22% of works included in the annual plan did not take off. According to the report, the state government also failed to effectively implement the project, UNNATI, aimed at upgrading the skills of MGNREGS workers. This project was meant to reduce the workers’ dependence on the employment guarantee scheme. “We found that though 22.53 lakh households completed 100 days of work during the period 2019-20 to 2023-24 and became eligible for enrolment under the scheme, only 3,272 members from these households were provided skill training,” the report said. The state also lagged behind in asset creation, which was reflected in the fall in the wage-to-material ratio, according to the report. “The wage-material ratio has to be improved by focusing on the creation of durable assets for strengthening the livelihood resource base of the rural poor,” the report said. The report said women constituted a significant majority of beneficiaries in Kerala, accounting for 90% of total person-days, the highest in the country. Shaju Philip is a Senior Assistant Editor at The Indian Express, where he leads the publication's coverage from Kerala. With over 25 years of experience in mainstream journalism, he is one of the most authoritative voices on the socio-political, religious, and developmental landscape of South India. Expertise, Experience, and Authority Decades of Regional Specialization: Shaju has spent more than two decades documenting the "Kerala Model" of development, its complex communal dynamics, and its high-stakes political environment. Key Coverage Beats: His extensive reporting portfolio includes: Political & Governance Analysis: In-depth tracking of the LDF and UDF coalitions, the growth of the BJP in the state, and the intricate workings of the Kerala administration. Crime & Investigative Journalism: Noted for his coverage of high-profile cases such as the gold smuggling probe, political killings, and the state’s counter-terrorism efforts regarding radicalization modules. Crisis Management: He has led ground-level reporting during major regional crises, including the devastating 2018 floods, the Nipah virus outbreaks, and the Covid-19 pandemic response. ... Read More