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CAs to audit Rs40,000 crore NREGA funds

Rural development ministry issued a circular a few weeks ago prescribing guidelines for the audit and certification of MGNREGA-related activities at the gram panchayat level, by chartered accountants.

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In a move that could usher in transparency in one of the flagship schemes of the UPA government, the rural development ministry has announced that chartered accountants will audit the almost Rs 40,000cr expenses/benefits doled out under the MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act).

The ministry issued a circular a few weeks ago prescribing guidelines for the audit and certification of MGNREGA-related activities at the gram panchayat level, by chartered accountants.

According to the statistics given by the ministry, the NREGA scheme covers around five crore households, which amounts to 25% of all rural households in the country. The minimum daily wage allowance per day per person is Rs 100, but this rate varies from state to state. The ministry wants to ensure that the Rs. 40,000 crore reaches those whom the scheme is intended to benefit and hence the audit.

Union rural development minister Jairam Ramesh, in a message to ICAI’s Pune West Study Circle, laid out the rationale behind the NREGA audit. He says, “The role that chartered accountants play in the effective implementation of our programmes is an important one. This is just the first step in utilising the professionalism of chartered accountants in the evaluation of our schemes.”

aWelcoming the move, senior chartered accountant and director of Janata Sahakari Bank Sudhir Pandit said, “We laud this important initiative that will bring about accountability in administration of one of the biggest welfare schemes of the government. The same model could be repeated for other schemes. It is also a signal to CAs that they should expand their horizons into rural areas, which is one of the biggest growth drivers of our economy.”

Sarosh Irani, CA and convenor of Pune West Study Circle of ICAI, who discussed this issue with Jairam Ramesh and senior ministry officials, feels that chartered accountants should look beyond professional opportunities and start taking an active part in the “nation-building” exercise.

Arun Giri is with www.taxsutra.com

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