Richer states like Tamil Nadu, Kerala corner more NREGS funds | India News – Times of India

NEW DELHI: The Economic Survey has questioned the conclusions that higher work generation and fund use under the job scheme implies rural distress, arguing that if it was so, then poorer states with higher unemployment should be leading the performance in MGNREGA as against the fact that richer states have a better record of tapping the scheme. The survey raised the possibility that there may be a correlation between MGNREGA fund usage and reduced unemployment, in what appears to argue that the job scheme is mitigating joblessness.

The survey stated that in 2023-24, Tamil Nadu, which has less than 1% of country’s poor population, accounted for 15% of MGNREGS funds released, while Kerala with just 0.1% of poor population used 4% of MGNREGS funds.TN and Kerala together generated 51 crore persondays of work.
In contrast, Bihar and UP with 45% of poor population accounted for only 17% of the scheme’s funds and generated 53 crore persondays of work.
The survey further added that “states with highest rural unemployment rates did not necessarily use the most MGNREGS funds.”
The survey also noted that irregularities and leakages also result in higher fund usage, and the funds do not reach the intended beneficiaries, which makes “demand an unreliable distress indicator”. It said Rs 935 crore over four years was found to have been misappropriated, as per social audit units.