NREGA: PM asks states to improve performance

With some states lagging behind in the implementation of rural job scheme National Rural Employment Guarantee Act, Prime Minister Manmohan Singh on Wednesday asked them to improve their performance in the flagship programme of the government.

"We still have miles to go before we achieve the full potential of this unique legislation. The performance of the programme has been uneven across states. Some states have shown good results, some are lagging behind. I urge them to catch up," he said.

Singh was inaugurating a day-long conference of state ministers of Rural Development and Panchayati Raj in New Delhi.

He said though major success has been achieved under NREGA, it should not be a cause for complacency.

The prime minister said a delivery monitoring unit has been set up in the PMO to review flagship projects, such as NREGA, jointly with the concerned ministries. Under the monitoring process, as much data as possible will be put on websites of concerned ministries.

"Workers on the ground can make independent assessments of the scheme and challenge government data. We need to shift from input-based monitoring, which can often be self-congratulatory, to independent evaluation of outcomes,"
he said.

Singh also said the government proposes to set up an ombudsman in each district for effective grievance redressal under NREGA.

The Prime Minister said that National Rural Employment Guarantee Scheme and Swarnajayanti Gram Swarojgar Yojna are working well and have created an effective safety net in rural India.

NREGA affords a measure of protection against natural calamities or market-induced vulnerability, he said.

Singh said the government has taken a major decision to restructure and redesign the SGSY and convert it into a National Rural Livelihood Mission to tackle rural poverty.

"The Mission will use a multi-pronged strategy for poverty reduction in a time bound manner by providing sustainable livelihood through various means to rural Below Poverty Level families," he said.

The prime minister said banks in rural areas must revisit their current 'brick-and-mortar based outreach models'suggesting that IT enabled banking services can overcome manpower constraints and develop new financial products.

He suggested exploring opportunities for expansion of the agency banking concept.

"Adequate attention should be paid to organising the demand side of the credit delivery by organising financial literacy and financial counselling services for the poor," he added.

Image: Prime Minister Dr Manmohan Singh