Executive Summary:
This document addresses questions raised in Lok Sabha regarding audits and assessments of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). It clarifies the roles of various auditing bodies, including the Comptroller and Auditor General of India (CAG) and the Internal Audit Wing (IAW). The document also references evaluation studies conducted by NITI Aayog and committees constituted to assess the scheme's impact.
Key Points / Main Content:
Auditing and Assessments:
* Performance audits of MGNREGS are conducted by the Comptroller and Auditor General of India (CAG).
* The Internal Audit Wing (IAW) has conducted risk-based internal audits in 225 districts of 30 states/UTs since FY 2013-14, evaluating internal controls, compliance, and fund flows.
* Social Audits are conducted by Gram Sabhas to ensure transparency and accountability.
* Audit of Scheme Rules, 2011, details the methodology, principles, and standards for audits.
* Auditing Standards for Social Audit were formulated following recommendations from a Task Force constituted jointly by the Ministry of Rural Development (MoRD) and CAG.
Evaluation Studies and Committees:
* NITI Aayog conducted an evaluation study in FY 2019-20, finding that MGNREGS enhanced livelihood security, reduced migration, created community assets, and fostered environmental sustainability.
* The Amarjeet Sinha Committee was constituted in 2021 to examine factors affecting wage employment demand and expenditure variations across states; its report has been received, and recommendations are being considered.
* The Development, Monitoring and Evaluation Office (DMEO), NITI Aayog, has also undertaken an evaluation study of MGNREGS.
Performance Monitoring:
* The Ministry regularly reviews MGNREGS implementation through meetings, councils, and technical cells at various levels in the States/UTs.
Impact Analysis:
Central Government (Ministry of Rural Development):
* Impact: Responsible for overseeing and coordinating audits, assessments, and reviews of MGNREGS implementation.
* Action Required: Consider and act upon the recommendations from the Amarjeet Sinha Committee report.
State Governments/UTs:
* Impact: Implementing agencies responsible for the effective execution of MGNREGS at the state and district levels.
* Action Required: Facilitate audits, participate in review meetings, and implement corrective measures based on audit findings and evaluations.
District Administrations:
* Impact: Frontline implementers of MGNREGS, responsible for project execution and monitoring.
* Action Required: Cooperate with audit teams, address identified issues, and strengthen internal controls.
Gram Sabhas:
* Impact: Conducting social audits to ensure transparency and accountability.
* Action Required: Conduct regular and effective social audits, ensuring community participation and feedback.
Comptroller and Auditor General of India (CAG):
* Impact: Conducting performance audits to assess the outcome of the implementation of the scheme.
* Action Required: Continue conducting performance audits of MGNREGS.
Internal Audit Wing (IAW):
* Impact: Conducting Risk-Based Internal Audits of MGNREGS implementation in states
* Action Required: Continue conducting risk-based internal audits of MGNREGS implementation in states.
NITI Aayog:
* Impact: Conducting Evaluation Study of Mahatma Gandhi NREGS
* Action Required: Continue conducting Evaluation Study of Mahatma Gandhi NREGS.
Key Entities Referenced
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): A flagship rural employment scheme in India, providing a legal guarantee for wage employment to rural households.
Comptroller and Auditor General of India (CAG): The supreme audit institution of India, responsible for auditing the accounts of the Union and State governments.
Mahatma Gandhi NREGA, 2005: The Act of the Indian Parliament that established the Mahatma Gandhi National Rural Employment Guarantee Scheme.
NITI Aayog: A policy think tank of the Government of India, responsible for providing directional and policy inputs.
Amarjeet Sinha Committee: A committee constituted in 2021 to examine factors affecting demand for wage employment under MGNREGS.
Audit of Scheme Rules, 2011: Rules detailing the methodology, principles, and standards for audits of schemes, notified by the Ministry of Rural Development in consultation with the CAG.
Gram Sabha: Village assembly consisting of all adults residing in a village, responsible for Social Audit.
Central Employment Guarantee Council: Council to periodically monitor implementation of the MGNREGS programme.
GOVERNMENT OF INDIA
MINISTRY OF RURAL DEVELOPMENT
DEPARTMENT OF RURAL DEVELOPMENT
LOK SABHA
UNSTARRED QUESTION NO. 2535
ANSWERED ON 05/08/2025
AUDIT OF MGNREGS
2535. Shri Sudama Prasad:
Will the Minister of RURAL DEVELOPMENT be pleased to state:
(a) whether the Ministry has not conducted Performance Audit of
Mahatma Gandhi National Rural Employment Guarantee
Scheme (MGNREGS) during the last ten years, if so, the
reasons therefor;
(b) whether the Government proposes to conduct a Performance
Audit of MGNREGS, and if so, the timeline for its initiation and
completion;
(c) whether the Government conducted any internal assessments
regarding the implementation, effectiveness, and impact of
MGNREGS in States, if so, the details thereof and if not, the
reasons therefor; and
(d) whether the Government constituted any committee to assess
the impact of MGNREGS performance, including fund
utilization, job creation, wage disbursement and others during
the last ten years, if so, the details of the committee report
and the action taken thereon?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT
(SHRI KAMLESH PASWAN)
(a)&(b): 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
Page 1 of 3evaluate 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.
(c)&(d): 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
Page 2 of 3governance 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.
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