## Summary of MGNREGS Audit and Evaluation Framework
The Ministry of Rural Development employs a multi-faceted audit and evaluation framework to ensure the effectiveness, transparency, and accountability of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). This framework includes performance audits by the Comptroller and Auditor General of India (CAG), risk-based internal audits, social audits, and independent evaluations.
Since FY 2013-14, the Internal Audit Wing (IAW) under the Office of the Chief Controller of Accounts (CCA) has conducted risk-based internal audits in 225 districts across 30 states/UTs. These audits assess internal controls, procedural compliance, and fund flows to improve scheme governance. Social audits are conducted by Gram Sabhas as mandated by the Mahatma Gandhi NREGA Act of 2005.
To standardize audit practices, the Ministry of Rural Development, in consultation with the CAG, notified the Audit of Scheme Rules, 2011. Auditing Standards for Social Audit were also formulated following recommendations from a joint MoRD and CAG Task Force constituted in June 2015.
NITI Aayog conducted an evaluation study of six Centrally Sponsored Schemes, including MGNREGS, in FY 2019-20. The study found that MGNREGS has enhanced livelihood security, reduced migration, contributed to community asset creation and infrastructure development, and fostered environmental sustainability.
The Amarjeet Sinha Committee was formed in 2021 to analyze factors affecting wage employment demand and expenditure variations across states. Their report has been received, and recommendations are under consideration. Furthermore, the Development, Monitoring and Evaluation Office (DMEO), NITI Aayog, has initiated another evaluation study of MGNREGS.
The Ministry of Rural Development conducts regular performance reviews through various forums, including Mid-Term Reviews, Labour Budget meetings, and Programme Review meetings. Central and State Employment Guarantee Councils monitor program implementation, and Technical Cells at various levels monitor work progress.
This information was provided by the Minister of State for Rural Development, Shri Kamlesh Paswan, in a written reply in Lok Sabha on August 5, 2025.
Key Entities Referenced
Ministry of Rural Development: The central government ministry responsible for rural development programs and policies.
MGNREGS: Mahatma Gandhi National Rural Employment Guarantee Scheme, a flagship rural employment program.
Comptroller and Auditor General of India: The supreme audit institution of India, responsible for auditing government finances and accounts.
Audit of Scheme Rules, 2011: Rules notified by the Ministry of Rural Development in consultation with the CAG, detailing the methodology, principles, and standards for audits of the MGNREGS scheme.
NITI Aayog: National Institution for Transforming India, a policy think tank of the Government of India.
Mahatma Gandhi NREGA, 2005: The legal framework that provides the right to work and mandates social audits through Gram Sabhas
Amarjeet Sinha Committee: A committee constituted in 2021 to examine factors affecting demand for wage employment in the rural sector under MGNREGS.
Lok Sabha: The Lower House of the Parliament of India, where a written reply regarding the MGNREGS audit was presented.
Ministry of Rural Development
AUDIT OF MGNREGS
Posted On: 05 AUG 2025 4:57PM by PIB Delhi
It is stated that performance audit is conducted by the Comptroller & Auditor General of India to assess the
outcome of the implementation of the scheme.
The Internal Audit Wing (IAW) under the Office of the Chief Controller of Accounts (CCA) has been
conducting Risk-Based Internal Audits of MGNREGS implementation in states since FY 2013-14. These
audits are carried out at the district level and are designed to assess risk areas based on likelihood and impact.
They evaluate the robustness of internal controls, procedural compliance, fund flows, and other operational
aspects to suggest for strengthening of scheme governance. Risk Based Internal audits of Mahatma Gandhi
NREGS have been conducted in 225 districts of 30 states/UTs since 2013-14.
In addition to this, Social Audit is conducted by the Gram Sabha as mandated under Mahatma Gandhi
NREGA, 2005 in order to ensure transparency and accountability in scheme implementation. To
institutionalize a robust framework, the Ministry of Rural Development, in consultation with the Comptroller
and Auditor General of India (C&AG), notified the Audit of Scheme Rules, 2011 detailing the methodology,
principles, and standards for audits. Further, a Task Force has been constituted jointly by MoRD and C&AG
in June 2015, whose recommendations led to formulation of Auditing Standards for Social Audit for effective
and community-driven audits.
NITI Aayog had conducted an Evaluation Study of six Centrally Sponsored Schemes, including Mahatma
Gandhi NREGS in financial year 2019-20. The study focused on the effectiveness, efficiency, impact, and
sustainability of these schemes, including the Mahatma Gandhi NREGS, to gauge their overall contribution to
the national rural economy. Some of the findings of this study are as below:
1. Mahatma Gandhi NREGS has significantly enhanced livelihood security for rural households,
acting as a crucial social safety net that protects them against economic and agricultural shocks.
2. A significant reduction has been observed in distress and seasonal migration due to the
availability of work opportunities within villages through the Mahatma Gandhi NREGS.
3. Mahatma Gandhi NREGS has contributed to the creation of durable community assets and
rural infrastructure, which in turn support sustainable livelihoods and improve living conditions.
4. The scheme has fostered environmental sustainability by creating "green jobs" that contribute
to ecosystem protection, climate change mitigation, and adaptation.
Further, Amarjeet Sinha Committee was constituted in 2021 to examine various factors affecting demand for
wage employment in the rural sector in different parts of country and to study/analyze the trends of
expenditure across States under Mahatma Gandhi NREGS along with reasons for inter-state variations with
specific focus on governance issues. The report of the Committee has since been received and some of the
recommendations have been identified for appropriate action.
In addition to this, Development, Monitoring and Evaluation Office (DMEO), NITI Aayog also has recently
taken up an Evaluation Study of Mahatma Gandhi NREGS.
The Ministry regularly reviews the performance of the implementation of Mahatma Gandhi in States/UTs
through various fora viz., Mid-Term Review, Labour Budget meetings, Labour Budget Revision meetings,
Programme Review meetings. Central Employment Guarantee Council and State Employment Guarantee
Councils periodically monitor implementation of the programme. Technical Cells have also been constituted
at various level in the States to regularly monitor the progress of works.This information was given by Minister of State for Rural Development Shri Kamlesh Paswan in a written
reply in Lok Sabha today.
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RC/ KSR/AR
(Release ID: 2152586)