NITI Aayog conducting evaluation study of MGNREGS, minister tells LS

The development is significant as it comes at a time when the Ministry of Rural Development has circulated a proposal seeking approval of the Expenditure Finance Committee (EFC) for continuation of MGNREGS and an outlay for Rs 5.23 lakh crore till financial year 2029-30, a period that coincides with the next Finance Commission (16th) cycle.

The EFC is a central body that appraises government schemes and projects; it comes under the Ministry of Finance.

Replying to a question by CPI(ML)L member Sudama Prasad, Paswan said, “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… Risk-Based Internal Audits of MGNREGS have been conducted in 225 districts of 30 states/UTs since 2013-14.”

“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 the country and to study/analyse the trends of expenditure across states under MGNREGS 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,” Paswan said, sharing details of the internal audits and review of the MGNREGS conducted in recent years.

“In addition to this, DMEO, NITI Aayog, too has recently taken up an evaluation study of MGNREGS,” he said.

The NITI Aayog conducted the last evaluation study of the MGNREGS in 2019-20. At the time, the think tank had also conducted the evaluation study of five other schemes.

“The study focused on the effectiveness, efficiency, impact, and sustainability of these schemes, including the MGNREGS, to gauge their overall contribution to the national rural economy,” Paswan said.

The evaluation study by NITI Aayog is crucial for getting approval of the EFC, said a source.

The Ministry of Finance has told all ministries and departments that no Centrally Sponsored Scheme (CSS) or Central Sector Scheme (CS) will be considered for continuation beyond March 31, 2026, unless a third-party evaluation of the scheme is carried out.

Sources say that the EFC approval and appraisal is part of the Centre’s exercise to evaluate and approve its schemes for the next Finance Commission cycle. The MGNREGS is backed by law and therefore the EFC approval is just a formality.