G.O. (Ms.) No. 22, Mahatma Gandhi National Rural Employment Guarantee Scheme Fund Release, 2020

Purpose and scope

Government Order (Ms.) No. 22, dated 27 January 2020, provides funding for the Mahatma Gandhi National Rural Employment Guarantee Scheme in Tamil Nadu. The Government of Tamil Nadu, Rural Development and Panchayat Raj Department sanctioned a total of Rs.20,84,78,000 as the fifth instalment of the first tranche for material and administrative components during 2019-2020.

The sanction consists of:

• Rs.9,94,35,000 in central assistance for the material component.
• Rs.3,31,45,000 as the proportionate State Government share of the material component.
• Rs.7,58,98,000 for administrative costs.

Who it affects

Government Order (Ms.) No. 22 primarily concerns the Director of Rural Development and Panchayat Raj, District Collectors outside Chennai District, and Project Directors of District Rural Development Agencies. The Director is authorised to draw and disburse the sanctioned amount and transfer it to the State Employment Guarantee Fund of Tamil Nadu.

The document concerns government funding and administration of rural employment works. It does not establish procedures for private land purchases, ownership transfers, patta changes or land use approvals.

Key funding conditions

Government Order (Ms.) No. 22 records the following conditions and funding arrangements:

• The State Government must transfer the central funds, together with the State share, to the State Employment Guarantee Fund within three days of receiving the funds.
• Delay beyond that period makes the State Government liable for penal interest at 12 per cent for the period of delay.
• Wage and material costs for each person-day of employment must be maintained in the proportion of 60:40.
• Wages are fully borne by the Government of India.
• Material expenditure, including wages for skilled and semi-skilled labour, is shared between the Central and State Governments in the ratio of 75:25.
• Administrative costs are fully borne by the Government of India.

Budget treatment

Government Order (Ms.) No. 22 distributes the expenditure across the general scheme, the Scheduled Caste Component Plan and the Tribal Sub-Plan. Additional funds of Rs.20,84,78,000 are to be provided in the revised or final modified appropriation for 2019-2020. The expenditure must also be brought before the Legislature through inclusion in the Supplementary Estimates for 2019-2020.