With a significant 70% increase in allocation on the cards for the government?s flagship National Rural Employment Guarantee (NREG) programme, Finance minister P Chidambaram has asked states to switch over to smart cards and complete the computerisation process by March next year to ensure strict vigilance to avert funds misuse.
The government is planning to allocate Rs 1 lakh crore for the programme in the 11th Plan, which would translate to at least Rs 20,000 crore per year. The programme is operational in 330 districts now and would be expanded to cover entire rural India. Budgetary support for the programme was increased to Rs 12,000 crore for the current fiscal from Rs 11,300 crore in 2006-07.
Introduction of smart cards and computerisation of data are expected to ensure transparency and is aimed at plugging loopholes and much reported instances of corruption in the mega employment programme. Also, the Centre wants strict vigilance and monitoring of the programme implemented by the states to make certain that there is no misuse of funds and the programme reaches those targeted.
In a letter to Planning Commission deputy chairman Montek Singh Ahluwalia, Chidambaram had said the Commission and the ministry for rural development would ascertain that the common system of account keeping and monitoring was put in place by the states.
Monitoring at state level need to be strengthened and the states are expected to ensure 100% verification at block, 10% at district and 2% at state level, especially of works, muster rolls and records.