The Standing Committee of Ministry of Rural Development, headed by P Venugopal, made the recommendation even as the government has increased allocation for the scheme this year.
"Keeping in view the likely revision of wage rate and expected increase in outreach of households, the Committee is constrained to note that the allocation made for the current year does not seem to be adequate for effective implementation of the scheme for having wider coverage.
The Committee also noted that while the allocation for the years 2012-13 and 2013-14 was Rs 33,000 crore each and Rs 34,000 crore for 2014-15, the government has made an allocation of Rs 34699 crore for this financial year.
"The Committee is apprised that for the current financial year 2015-16, additional amounts have been proposed to be given to the department provided that the amount has been properly utilised. Admittedly, the department has to ensure that the money being spent under this scheme must be fully accounted for and a viable mechanism be developed for the purpose," the panel said in the report related to Demands for Grants for the financial year 2015-16.
"The Committee has serious apprehension about the fulfillment of the target of providing the 100-day employment to the eligible work-seeker in the rural areas and also the compliance of the various provisions of the Act in providing job," it said.