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Noticing a steep rise in demand for work under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in the drought year, the rural development ministry used an off-record WhatsApp chat group to tell states not to generate more work under the programme.
The ministry told state officials that the ‘mad race’ for generating work under MGNREGA could not continue.
It warned that more funds would not be made available soon and that states should ‘plan’ more ‘judiciously’ with the money they had already received.
The instructions ran contrary to the provisions of MGNREGA, which make it mandatory for the government to provide as much funds as are required for the work demanded by the rural poor and not curtail work to fit its budgetary decisions. But, on the WhatsApp group, the government told states the idea that MGNREGA was demand-driven “did not cut much ice anymore”.
Faced with this informally imposed moratorium on funds, many states repeatedly pleaded with the rural development ministry on the WhatsApp group for immediate release of monies to pay hundreds of crores of arrears to the poor for the work that had been completed.
But, faced with the Centre’s off-record instructions, the work states provided to the rural poor in August and September came crashing down.
In July, 30 million extra persondays of work was given, compared with what the Centre had initially approved. In September, the work provided was 54.48 million persondays less than what was initially approved for the month. This, when the budgeted work for September had been kept substantially lower than that for July, adjusting for the usual lower demand in the monsoon period.
Business Standard reviewed the WhatsApp chat group named ENCORE or ‘Enabling Communication on Rural Employment’ by the rural development ministry. It has all senior ministry officials and state-level MGNREGA officials as members, besides others. The ministry claimed: “It is simply a convenience for follow-up and reminders as also for showcasing good work by states through uploading of pictures.”
But, instructions from the Union rural development ministry to the state officials on the WhatsApp group show that the chat was also used as an off-record avenue for the Union government to pass instructions, which it could not have done through formal channels, keeping the law in mind.
On August 14, the rural development ministry’s joint secretary in-charge of MGNREGA told the states: “We ought to desist from campaigns for enlisting demand and indulging in the mad race of more and more personday generation (generating of wages). While the Act does not distinguish between APL and BPL (those above and below poverty line) and vulnerable/non-vulnerable, we have to “intelligently” communicate to the district/block/GP authorities to learn to target.”
On August 28, the rural development ministry official told the states: “To resort to the logic that it is a demand-driven programme and whatever is asked for will be given, does not cut much ice now. This has been voiced in the Supreme Court, too. There has to be a pragmatic handling of funds.”
The officer added: “Our demands cannot be unlimited for the simple reason that the resources are limited — both of the Centre and that of the states. The ministry had emphatically and clearly communicated during the previous fund release that we have to strategically plan out the spending till September 2016.”
In response to queries from Business Standard, the rural development ministry said: “The ministry is committed to implementing MGNREGA in letter and spirit.”
About the WhatsApp group, it said, “ENCORE was never intended as a substitute to official communication. All substantive issues are addressed through formal letters of the ministry and not through WhatsApp messages. The WhatsApp messages are kept as a back-up for future references, if need be. However, no formal arrangement has been made in this regard. It is not a formal government communication.”
But, the chats show that while the central government was giving off-the-record instructions to make do with earlier provided funds till September, at the same time, states were repeatedly pleading for funds.
Some said they had already run up large arrears that were to be paid to villagers for completed work. Some others warned that they had little money left to give work in the coming months.
On August 19, Karnataka officials wrote in the chat: “Wages of Rs 288 crore pending needs urgent clearance. Labour unrest in every district. We are not able to answer. We had requested Rs 200 crore state funds to be put in account for clearing wages. Unfortunately, that could not materialise. (Karnataka chief minister) said the PM, on May 7 this year during drought mitigation meeting, had assured full support. Hence, works were ensured to needy people. The ministry of rural development had also allowed 150 days to drought-affected blocks. Now, all these poor workers must be paid at the earliest. Request for kind help urgently.”
On August 22, Tamil Nadu wrote: “We are in urgent needs of funds, as our wage liability is around Rs 750 crore so far….”
Business Standard found at least five more states had made similar pleas to the Union government and some of them did so repeatedly. Jammu & Kashmir pointed out the difficult situation and said urgent provision of funds would help keep people employed under the circumstances.
In response to Business Standard’s queries, the rural development ministry said: “The ministry of rural development has not made any changes in its approach in the month of August, as is borne out by all formal communications to the states.”
It added, “While work on demand is being made available as reflected in the very high persondays generation, especially during periods of drought and distress, a demand-based programme also requires proper record keeping, financial management and full transparency and accountability.”
| Other states pleading for funds on WhatsApp: |
| Jammu and Kashmir — "Our state is in dire need of funds. Only Rs 2.4 crore in SEGF (state’s MNREGA) account. Please consider our proposal for release of 2nd instalment…We require immediate funds for engaging the rural masses." |
| Jharkhand — "Request to release central share too as we don’t have any funds too." |
| Mizoram — "Mizoram is eagerly waiting for fund release as we have received only Rs 19 crore in the current financial year." |
| Bihar — "Allocation of Rs 235 crore in SEGF for material and admin exhausted and despite our efforts for reconciliation the fund are yet to be released. We need your support to get the release so that material intensive works can be taken up." |
Ministry of Rural Development clarifies:
The reports are not a summary of the reality. It has questioned the intent of the government on the basis of an informal communication of a joint secretary of the department. The informal communication of a joint secretary does not override detailed written communication to states to implement MGNREGA in letter and spirit. The informal communication is regretted and it is not the view of the government. It however, did not influence the provision of work on demand in states.
The facts on employment generation in MGNREGA in the current financial year and especially in the month of September are as under.
Person-days generated under MGNREGA
| Financial Year | Till Sep (PDs in Cr) | During Sep (PDs in Cr) |
| FY 11-12 | 110.10 | 10.65 |
| FY 12-13 | 137.17 | 11.43 |
| FY 13-14 | 102.12 | 11.12 |
| FY 14-15 | 106.68 | 7.94 |
| FY 15-16 | 101.39 | 14.95 |
| FY 16-17 | 138.96 | 9.30* |
*This number will increase as the data entry for the month of September is still in progress
From the table above, it is clear that there is an overall 21% increase in person-day generation in the current FY 2016-17 (so far), which is the highest ever in the last 6 years.
The employment generation in September 2016, shows an apparent decline compared to August 2016. However, the month of August-September-October, are lean months as workers also get on farm employment also. The monsoon in 2016-17, was normal and the states which had experienced severe drought in 2015-16 experienced good monsoon in the current Financial Year. It also needs to be noted that the employment provided as a percentage of employment demanded is normally in the range of 85-90%. In September, 2016, 84% of employment demanded was provided. This figure will only go up as full data for September is entered on MGNREGA MIS. State-wise analysis of data shows that decline in persondays generated in September, 2016 was much higher in 10 States that were drought affected in 2015-16, clearly pointing to impact of good rainfall on demand for work under NREGA.
It also needs to be pointed out that distribution of labour budget across the year is planned by State Governments based on demand for work in a particular Season/Month.
The Mahatma Gandhi NREGA is a demand driven programme. The Ministry has issued instructions to open various avenues for capture of demand. Once the demand is captured, the government- both Union and states, are committed to providing employment as per the provisions of the Act. It is pertinent to mention here that this Financial Year has had the highest ever budget allocation (? 43,499 crore) since the inception of the programme. The Central Government has made efforts to provide financial resources as per the demand from States and it is for this reason that the total expenditure already is more than 80% of the revised budgetary provision. It only shows commitment of the Central Government to demand based provision for wage employment during periods of distress.
The article also refers to unmet demand of States for funds under MGNREGA. The Central Government assigns top most priority to release of funds on time but all such releases are governed by the basic requirements of the General Financial Rules (GFR) with regard to audited statement, utilisation certificate and other detailed submissions for funds as per a common agreed check list. In all such cases the moment the General Financial Rules are complied with funds have been made available to the State Governments on top priority. In the intervening period, States have been requested to even temporarily provide funds from State Budget to ensure that wages are paid on time. On all such matters clear official communications have gone to the States to ensure that work is available to whomsoever who needs it, in the true spirit of MGNREGA.
Nitin Sethi responds:
1. The WhatsApp group is not a personal chat group run by the joint secretary. It is serviced and maintained by the rural development ministry and has the additional secretary and secretary, rural development, as its active members, besides NIC officials. It is covered under Section 2 (iv) of the Public Records Act, 1993, which defines “public records” to also include “any other material produced by a computer or by any other device, of any records creating agency”. None of the other senior officials ever corrected their subordinate officer, even as several such official instructions were sent through the group over months – many not in tune with the MNREG Act. Besides, many states wrote officially as well to the Centre in July-August for immediate release of long-pending funds, including the chief minister of Karnataka personally, as reported by the paper.
2. The data in the table on person-days contradicts the ministry’s assertions. The data above show: In all previous normal and above monsoon years (2010-13), when rains did better than even 2016-17, the work registered and provided in the month of September have been substantially above that provided this year. Yet the work provided in September of these years was higher than in 2016-17.
3. The labour budget is proposed at the beginning of a year on a month-wise basis by states, but it is the Union rural development ministry that approves it based on its internal formula. This year, the planned and approved work by Union rural development ministry was 980 million days less than what states had asked for.
4. Out of the 80% money expended from the revised Budget by October end, 76% had already been spent in the four months from April to July which is why the squeeze on finances from Centre led to a mere 4% additional spend by the Centre over the next two months of August and September. Out of the Rs 43,499 crore revised allocation, Rs 12,581 crore was actually against liabilities of the previous year – one of the highest ever in the history of MNREGA. It left only Rs 30,918 crore for the current year. The government’s MIS data show that the total expenditure last year on MNREGA was Rs 43,905 crore.
5. The ministry’s MIS for the scheme as on October 17 itself acknowledges the central government liabilities for 2016-17 as upwards of Rs 5,000 crore, with another high demand period of work under MNREGA yet to take off in winter. The MIS also reflects more outstanding liabilities from the previous financial year. It also reflects that legally due compensation to workers for delay in wage payments has not been made, which, if paid, would increase the governments’ liabilities yet further.
