With several controversies emerging that the funds released for the Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS) being utilised for other purposes by many state governments, the Haryana government has on Sunday made MGNREGS Fund Act to check the proper and dedicated utilisation of the funds.
As per the new notification to this effect, issued by the rural development department, Haryana, funds received from the Union government and the state will only be utilised as per provisions of the new act and instructions issued by the Union government from time to time.
The new authority shall open dedicated saving bank account for the state fund with a nationalised bank and the account shall be operated with joint signatures of a member secretary or as may be authorised by the authority. All the money received by the state fund shall be deposited into the saving bank account and shall not be utilised for any purpose other than the purposes mentioned in the act.
The act say that no payment shall be made out of the state fund unless the expenditure is covered by the sanctioned budget and as per the guidelines issued by the Union government from time to time.
The act makes it mandatory that funds may be released towards first instalment from the dedicated saving bank account to the district programme coordinator as per the labour budget and requirement of funds based on demand for works.
It further states that funds releases to the district programme coordinator shall be made on the basis of requirement and on the receipt of utilisation certificates of fund already released. The releases as far as possible shall be made online duly approved by the member secretary of the authority and these shall be made component wise that is works, administration, awareness, etc. and not in a consolidated manner.