The Union government has not been paying the material costs incurred under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) works in Kerala over the past several months, with the outstanding amount now reaching a massive ₹436 crore. Additionally, administrative funds to the tune of ₹93 crore and wage for unskilled labourers totaling ₹197 crore are also due to be paid to the State.
"Since August last year, the funds for materials have not been transferred from the Union government, due to which outstanding bills for vendors could not be settled. This has also led to people depending on contractors, who are not usually allowed in the MGNREGS system. The dependency on contractors at times affects the quality of the assets created. They will also employ their own people, who are not necessarily from the same panchayat, which goes against the whole idea of the MGNREGS," says an official of the State MGNREGS Mission.
Meanwhile, the Union government last week hiked the wage rate for MGNREGS workers in Kerala from ₹291 to ₹311 per day after three years. Though the percentage increase is the highest for Kerala compared to most other States, MGNREGS State Mission officials as well as activists maintain that the hike is insufficient compared to the prevailing wage rates.
