CAG finds 88.73% of MGNREGA projects unimplemented in Kerala due to extra targets

Who it concerns: Government of Kerala; specifically the implementation of MGNREGA across Grama Panchayats in Thiruvananthapuram, Palakkad, and Kasaragod districts.

What the auditor found

• ₹269.27 crore in wages was paid after 16 to 90 days of muster roll closure, and ₹39.24 crore was paid after three months.
• ₹43.59 crore remained outstanding as of December 2024 for unskilled/skilled wages, material, and taxes.
• 19,792 transactions for wages and material were pending regeneration for six months to over four years.
• ₹16.05 crore was paid as salaries to 33 government employees from MGNREGA administrative expense funds, violating central instructions.
• 88.73% of individual projects included in Annual Plans were not implemented due to state-imposed targets overriding Grama Sabha demand.
• 44.01% of surveyed beneficiaries were not enrolled in any insurance schemes (PM-JAY, Aam Admi Bima, or PMSBY).
• Only 3,272 members received skill training under Project UNNATI despite 22.53 lakh households being eligible.
• The wage-to-material ratio fell below the mandated 60:40, with material share ranging only between 11% and 18%.
• CAG found malpractices in Pudur GP involving fraudulent muster roll entries and misappropriation of funds.
• CAG noted the absence of a convergence plan and failure to appoint independent quality monitors.

Also in the document

• CAG found that the State imposed additional targets for asset creation (e.g., cattle sheds) beyond beneficiary demand, leading to the non-implementation of 88.73% of planned individual projects.
• CAG reported that 99% of works executed by test-checked Grama Panchayats had expenditures below ₹5 lakh, indicating a disconnect from the scheme's goal of creating durable assets.
• CAG identified specific malpractices in Pudur GP where perpetrators exploited system loopholes, such as manual entry of skilled beneficiaries and lack of Aadhaar-based payment monitoring, to misappropriate funds.
• CAG noted that despite 22.53 lakh households completing 100 days of work and becoming eligible for skill training under Project UNNATI, only 3,272 members were trained.