G.O.(Ms.)No.85, MGNREGS Material Component Funding, 2023

What the government order does

The Rural Development and Panchayat Raj (CGS.1) Department, through Government Order G.O.(Ms.)No.85 dated 22 June 2023, authorises funding for the material component of the Mahatma Gandhi National Rural Employment Guarantee Scheme in Tamil Nadu for 2023-24. It releases the first instalment of the first tranche of Central Assistance together with the proportionate State share.

The total sanctioned amount is Rs.1181,88,89,333. The funding comprises:

• Rs.886,41,67,000 from the Government of India, representing 75 per cent of the material component.
• Rs.295,47,22,333 from the Tamil Nadu Government, representing the remaining 25 per cent.

Scheme background

The Central Empowered Committee approved a labour budget of 20 crore person days for Tamil Nadu for 2023-24. The approved wage rate is Rs.294 per person day, and the State is stated to be entitled to Rs.5,880 crore.

The Government of India sanctioned its material component contribution after this labour budget approval. The Commissioner of Rural Development and Panchayat Raj then requested release of both the Central and State shares.

Allocation and administration

Government Order G.O.(Ms.)No.85 distributes the material funding across the general Mahatma Gandhi Rural Employment Guarantee Scheme accounts, the Scheduled Caste Component Plan and the Tribal Sub Plan. The listed allocations together equal the total Central and State shares sanctioned.

Key administrative provisions are:

• The Commissioner of Rural Development and Panchayat Raj may draw and transfer the sanctioned amount to the State Employment Guarantee Fund of Tamil Nadu.
• The money must be transferred to the Single Nodal Agency material account for the Mahatma Gandhi National Rural Employment Guarantee Scheme.
• Government of India guidelines must be followed strictly.
• Social audits must be ensured under the applicable guidelines.
• Utilisation certificates must be sent to the Government of India according to the prescribed norms, with a copy to the Tamil Nadu Government.

Who is affected

Government Order G.O.(Ms.)No.85 primarily affects the Commissioner of Rural Development and Panchayat Raj, District Collectors outside Chennai District, District Rural Development Agencies and officials administering scheme expenditure. It concerns public funding for rural employment scheme materials and does not set out any change to private land ownership, land classification, registration or property transfer.