Revamping MGNREGA Social Audit: Strengthening the Fight Against Corruption

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) stipulates that the Gram Sabha is responsible for “monitoring the execution of works” in Section 17. There are social audit units in every State, and their purpose is to function independently of the implementing authorities. The Comptroller and Auditor General’s auditing rules were released on December 19, 2016.

MGNREGA’s social audit is a key element for the success of this plan. Currently, the implementation status is being monitored using the Management Information System (MIS). The recently released MIS data on social auditing highlights the progress and challenges of social auditing in MGNREGA.

Only 6 of the 34 States and Union Territories (UTs) have finished social audits of the work carried out in more than 50% of Gram Panchayats under the MGNREGA. “The only state with all Gram Panchayats covered is Kerala” says the Union Ministry of Rural Development (MoRD)’s Management Information System (MIS).

Only Bihar (64.4%), Gujarat (58.8%), Jammu and Kashmir (64.1%), Odisha (60.42%), and Uttar Pradesh (54.97%) exceeded the 50% threshold, besides Kerala. Only 3 states — Andhra Pradesh (49.7%), Himachal Pradesh (45.32%), and Telangana (40.5%) — have covered 40% or more villages. Apart from Telangana, the percentages of poll-bound states are extremely low: 1.73% for Madhya Pradesh, 17.5% for Mizoram, 25.06% for Chhattisgarh, and 34.74% for Rajasthan. Across the nation, the issue is the same regardless of the party in power.¹

Kerala was the only State that held periodic Social Audit Public Hearings (Janakeeya Sabhas) at the panchayat level to subject the audit reports to close public scrutiny. In other States, such public scrutiny is done only at the block level. The government has taken a host of measures to make our social auditing mechanism robust including holding periodic panchayat-level public hearings where all stakeholders participate. Kerala has a healthy culture of people’s participation in governance.

The Center has repeatedly warned the States that money under the MGNREGA will be withdrawn if social audits are not carried out regularly. The States claim that the audit is running behind schedule because the Center fails to provide funds on time to the social audit units, which function independently of the State governments. The underpayment of village-level auditors’ is a frequent source of grievances.

The social audit units, which are meant to detect any cases of malpractice, are suffering because they are fund starved and do not have trained or adequate personnel working for them. The social audit unit’s sole responsibility is to flag cases of malpractice following which recovering misappropriated money – and reprimanding the officials responsible – is the job of the state government. Some states are not getting adequate funds under MGNREGA. For example, units in Karnataka and Bihar have not had funds for nearly two years.

MGNREGA stands as a lifeline for rural income and empowerment, witnessed in Balmani, Madhya Pradesh where it bolstered local earnings, and in Pookkottukavu, Kerala fostering the largest assembly of proficient women well-diggers. Yet, the scheme faces persistent criticism for corruption. The crucial tool against this is the embedded social audit, pivotal for accountability. However, a glaring reality remains: Social Audit Units suffer from financial deprivation and lack of trained personnel, stalling their mandate to uncover malpractices. Their role, though essential, is impeded by delayed funds, hindering the very purpose of the MGNREGA, which guarantees employment and economic stability for rural households. Strict enforcement of these audits, meant to unearth discrepancies in wages, procedural flaws, and infrastructure quality, stands pivotal for the scheme’s integrity and success.

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