Mandatory NREGA Digitisation Rubs States the Wrong Way by Devika Banerji

States are not sure if they will receive funds under the government’s flagship rural employment programme on time this year. Glitches in a governmentdeveloped software last year had delayed the digitised submission of progress reports by states, which is mandatory for sanction of funds under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA). The ensuing delay in sanction of funds stalled ongoing work and affected implementation of new ones. The rural development ministry, which calls these issues teething troubles, has called a meeting with states on May 23 to discuss the matter. "The system was imposed on us last year, but most of the states were not able to upload all the data due to server and software problems," said a state-level official.

In 2010-11, the number of households that had completed 100 days of work under the scheme fell 24% to 53 lakhs. Management Information System (MIS), a web-enabled software, was introduced by the government to make data on NREGA transparent and available in the public domain. The government also sees it as an effective tool to monitor the scheme.

The data is used as a parameter for release of funds in the second half of the fiscal – which is the peak season of demand under MGNREGA.

In 2010-11, MIS was made mandatory by the rural development ministry, but it had to be dropped in January as states were unable to meet the requirement. The ensuing delay in sanction of funds led to states having around . 17, 000 crore in unspent money, as only 60% had been utilised, against 76% in 2009-10.

"Most states had received the money after the peak season was over, and the primary reason was the inefficiency of the MIS and it being made mandatory," said an official in the rural development ministry of a southern state.

The period from November – February is the peak season for the scheme.

The system requires project and worker data to be uploaded for around 2.5 lakh gram panchayats, 6465 blocks , 619 districts and 34 states and union territories. The data flow often leads to server crashes and over-loading.

Not a smooth run for NREGS

NREGS Details (crore)       2009-10    2010-11
No. of job cards issued     11.3       12.2
Demand for employment   5.3        5.5
Houses provided
employment                      5.25       5.4
Mandays generated          283.6      252.98
Houses with 100 days       0.71       0.54