official guidance

G.O.(Ms.)No.165, MGNREGA Material and Administrative Component, 2020

The Tamil Nadu Rural Development and Panchayat Raj (CGS.1) Department issued G.O.(Ms.)No.165 dated 15 October 2020, sanctioning Rs.249,16,66,667 for the material and administrative components of the Mahatma Gandhi National Rural Employment Guarantee Act programme for 2020-21. The order authorises transfer of the sanctioned amount to the State Employment Guarantee Fund of Tamil Nadu and does not contain provisions changing land ownership or property rights.

Category
Revenue and land administration
Effective
1 January 2020
Pages
3
Status
In force
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Purpose

The Tamil Nadu Rural Development and Panchayat Raj (CGS.1) Department issued G.O.(Ms.)No.165 dated 15 October 2020 to fund the Mahatma Gandhi National Rural Employment Guarantee Act programme during 2020-21. The sanctioned total is Rs.249,16,66,667, comprising Central assistance and the proportionate State share.

The funding followed approval of a labour budget of 27 crore person days for Tamil Nadu. The Government of India required the Central funds, together with the State share, to be transferred to the State Employment Guarantee Fund within three days of receipt. A delay would make the State Government liable for penal interest at 12 per cent for the delayed period.

Funding approved

G.O.(Ms.)No.165 allocates the sanctioned amount as follows:

  • Rs.162,50,00,000 as Central assistance for the material component.
  • Rs.54,16,66,667 as the proportionate State share for the material component.
  • Rs.32,50,00,000 as the administrative component, fully borne by the Government of India.
  • Rs.249,16,66,667 as the total sanction for 2020-21.

The programme expenditure for generating wage employment must maintain a 60:40 proportion between wage and material costs. Wage costs are fully borne by the Government of India. Material costs, including wages for skilled and semi-skilled labour, are shared by the Central and State Governments in the ratio of 75:25.

Administration and oversight

G.O.(Ms.)No.165 authorises the Director of Rural Development and Panchayat Raj to draw the sanctioned amount and transfer it to the State Employment Guarantee Fund Account of Tamil Nadu.

The Government of India guidelines must be followed strictly. Social audit must be ensured, and a utilisation certificate must be submitted to the Government of India according to the applicable norms, with a copy sent to the Tamil Nadu Government.

The funding is distributed through account heads covering the general Mahatma Gandhi Rural Employment Guarantee Scheme, the Scheduled Caste Component Plan and the Tribal Sub-Plan.

Who is affected

G.O.(Ms.)No.165 primarily affects the Director of Rural Development and Panchayat Raj, District Collectors except Chennai District, and Project Directors of District Rural Development Agencies responsible for programme implementation and accounting. For property buyers and landowners, the document is a programme funding sanction and contains no provisions on land title, land transfer, classification, planning permission or property registration.

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Common questions

Does G.O.(Ms.)No.165 change ownership or classification of any land?

No. The document sanctions and transfers funds for the Mahatma Gandhi National Rural Employment Guarantee Act programme. It contains no provision changing land ownership or land classification.

How much funding was sanctioned?

The total sanction is Rs.249,16,66,667 for 2020-21, covering the material component, the proportionate State share and administrative costs.

Who can draw and transfer the sanctioned amount?

The Director of Rural Development and Panchayat Raj is authorised to draw the amount and transfer it to the State Employment Guarantee Fund Account of Tamil Nadu.

What oversight requirements apply to the expenditure?

Government of India guidelines must be followed, social audit must be ensured, and a utilisation certificate must be submitted according to the applicable norms.