Social Audit under MGNREGS

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Source– This post is based on the article “MGNREGS audit crosses 50% local bodies in just six States” published in “The Hindu” on 23 November 2023.

Why in the News?

Based on data from the Management Information System (MIS) on Social Audit of Union Ministry of Rural Development, it was found that only 6 states have completed social audit of works done under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in more than 50% of gram panchayats.

What is MGNREGS: Issues and Significance ?

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What is Social Audit and what is its process under MGNREGA?

1. According to CAG, Social Audit may be described as verification of the implementation of a programme/scheme and its results by the community with the active involvement of the primary stakeholders.

2. Section 17 of the MGNREGA states that the gram Sabha “shall monitor the execution of works”.

3. Each State has Social Audit Units (SAUs) which are supposed to work independent of the implementing authorities.

4. Comptroller and Auditor General has laid down the auditing standards. Under these, every SAU is entitled to funds equivalent to 0.5% of the MGNREGA expenditure incurred by the State in the previous year.

5. The Union Government provides funds to the SAUs to ensure their independence from the state governments.

6. The audit involves quality checks of infrastructure created under the MGNREGA and checking for financial misappropriation in wages and procedural deviations.

7. Social Audit Public Hearings: The purpose of these public hearings is to subject the audit reports to close public scrutiny. While most states conduct this at the block level, Kerala holds these public hearings at the level of gram panchayat.

8. In case of failure to conduct SA regularly, Centre has clarified that it will withhold funds under MGNREGS.

What are the Key findings?

Social audit under MGNREGS
Source- The Hindu
Overall States performanceOf the 34 States and Union Territories, only six have completed social audit of works done under the  MGNREGS in more than 50% of gram panchayats.
States cover more than 50 percent gram panchayats1. Best PerformingKerala is the only State to cover 100% gram panchayats.
2. Other States are- Bihar (64.4%), Gujarat (58.8%), Jammu and Kashmir (64.1%), Odisha (60.42%) and Uttar Pradesh (54.97%).
States cover more than 40 percent or more gram panchayatsTelangana (40.5%), Himachal Pradesh (45.32%) and Andhra Pradesh (49.7%).
Worst performing statesMadhya Pradesh (1.73%), Mizoram (17.5%) etc.

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