In the fiscal 2010-11, water conservation projects guzzled maximum funds released under the MNREGA with the government deciding to channel more than 40 per cent of the total funds into water harvesting, restoration of traditional water baoris and de-silting of water bodies like ponds and lakes. Funds were channelled into new sectors like micro irrigation and tree plantation.
The investment in water conservation projects in 2010-11 shows a policy shift in spending of MNREGA funds by the state. In the previous years, the government was concentrating on rural connectivity by paving rural roads and patching up missing links with the help of spending in MNREGA labour funds released by the Union government.
In the last fiscal, the government allocated almost 30 per cent of the spending in MNREGA funds for rural connectivity. "In 2009-10, rural road connectivity consumed 42 per cent of the funds available under spending in the employment guarantee Act. In the year before that (2008-09) 41.8 per cent of the funds were used for rural connectivity," an official with the rural development department said.
The government retained its average spending of 20 per cent on water conservation and water harvesting in 2010-11. It increased its spending on renovation and restoration of Baoris and water bodies from 16 per cent in 2008-09 to 19 per cent in 2010-11. Micro irrigation and canal activities were allocated close to 6 per cent of the total funds.
The records of the rural development department reveal that the government diverted funds from building rural roads to plantation, land levelling and land development activities. According to officials, plantation works received 7.6 per cent of the total spending in MNREGA funds in 2010-11. In 2010-11 the Centre had allotted close to Rs 2,80,000 lakh. In 2009-10, state had received, more than Rs 5,70,000 lakh.