Key Details
The audit suggests that weaknesses across multiple stages of programme implementation reduced the effectiveness of MGNREGA's employment guarantee and accountability framework
Area | Main Finding |
|---|---|
Audit coverage | The audit covered 8 districts, 16 Janpad Panchayats, 64 Gram Panchayats and 384 works during 2019–24. |
Records unavailable | Only 21% of work records were fully produced for audit, while 46% were not produced at all. |
Planning deficiencies | Baseline surveys, annual household surveys, District Perspective Plans and Gram Panchayat Shelf of Projects were not prepared in the sampled areas. |
Labour budget | Labour Budgets were prepared without Gram Sabha participation, with ₹295.59 crore paid beyond approved labour budget limits during 2020–23. |
Financial management | Pending liabilities reached ₹1,217.05 crore, while delayed fund transfers created a penal interest liability of ₹10.36 crore. |
Employment guarantee | Only 1.95%–5.83% of households received the guaranteed 100 days of employment, with many households receiving fewer than 40 days. |
Wage payments | Irregular payments of ₹1.46 crore were made through duplicate, fake or incorrect job cards, while Aadhaar-related issues blocked ₹54.79 crore in wage payments. |
Governance & oversight | Mandatory quality monitoring cells, district Ombudsmen (Lokpal), regular social audits and State Employment Guarantee Council meetings were absent or inadequately implemented. |
Planning Weaknesses Undermine the Employment Guarantee
The CAG audit found that only 1.95%–5.83% of households received the statutory 100 days of employment, while key planning mechanisms—including baseline surveys, annual household surveys, District Perspective Plans and Gram Panchayat Shelf of Projects—were largely absent in the sampled areas. Labour Budgets were also prepared without Gram Sabha participation, weakening the demand-driven planning framework envisaged under MGNREGA. The audit further noted that MGNREGA wage rates remained below the state's notified agricultural minimum wages throughout the audit period, potentially reducing the programme's attractiveness as a source of rural employment.
Financial and Administrative Gaps Affect Programme Delivery
The audit identified ₹1,217.05 crore in pending liabilities, ₹10.36 crore in penal interest arising from delayed fund transfers and ₹54.79 crore in wage payments blocked due to Aadhaar-related issues. It also found ₹1.46 crore in irregular wage payments through duplicate, fake or incorrect job cards. Alongside these financial weaknesses, vacancies, dual-charge appointments and inadequate administrative capacity constrained programme implementation and timely delivery of employment and wages.
Weak Oversight Limits Accountability and Asset Quality
Governance and monitoring systems showed significant deficiencies. Only 21% of work records were fully produced for audit, while 46% were not produced at all. Mandatory quality monitoring cells, district Ombudsmen (Lokpal), regular social audits and meetings of the State Employment Guarantee Council were either absent or inadequately implemented, reducing transparency, weakening grievance redress and limiting assurance over the quality and durability of assets created under the programme.
Policy Relevance
Decentralised Planning: Effective implementation of MGNREGA depends on functional Gram Sabha planning, updated household surveys and realistic labour budgets that reflect local employment demand.
Financial Governance: Timely fund releases, accurate beneficiary databases and stronger financial reconciliation are essential to reduce payment delays and strengthen programme credibility.
Implementation Capacity: Filling vacancies, strengthening frontline administrative capacity and improving technical support are critical for delivering employment guarantees and creating durable community assets.
Governance and Accountability: Functional Ombudsmen, regular social audits and effective quality monitoring remain central to improving transparency, safeguarding public expenditure and strengthening public confidence in the programme.
Follow the Full Report Here: Report No. 4 of 2026: Government of Madhya Pradesh – Report of the CGI on Implementation of the MGNREGA in Madhya Pradesh