Implementation of the government's flagship scheme MNREGA has come under flak from CAG on various counts, including diversion of funds and impermissible works undertaken to the tune of about Rs 2,252 crore.
The audit undertaken by the Comptroller and Auditor General of the programme launched by the Rural Development Ministry in 2006 found that works amounting to around Rs 4,070 crore were incomplete even after one to five years of launching.
The CAG noted that employment generated declined from 283.59 crore persondays in 2009-10 to 216.34 crore persondays in 2011-12. The completion of works also saw a significant decline in 2011-12.
"There were deficiencies in the approval and release of funds by the Ministry. Numerous instances were noticed in which the Ministry released grants in excess of demand and in breach of its own conditionalities," says the report tabled in Parliament on Tuesday.
"In fact, in 2010-11, the Ministry relaxed all conditionalities (except furnishing utilisation certificate) associated with the release of funds. No basis for this decision was provided by the Ministry," it said and noted that Rs 1,960.45 crore was released in March 2011 alone, without exercising proper financial controls.
The CAG asked the government to take "decisive steps" to ensure proper implementation of the scheme.
"It needs to focus on developing intensive monitoring and evaluation systems," the government auditor said.
Analysing implementation of programme, the report said in the test checked districts of 25 states and Union Territories, 1,02,100 "inadmissible works" amounting to Rs 2,252.43 crore were undertaken.
These inadmissible works included construction of kutcha roads, cement concrete roads, raised platforms for cattle and other animals and bathing ghats.