Over the last couple of weeks, MNREGA is back in the spotlight. The Union Minister for Rural Development wrote to certain states regarding potential misuse of funds, and it was announced that rural development schemes are open to CAG audit.  In large schemes like MNREGA, officials at all levels of government - central, state, district, block, panchayat - have roles to play. This can make it difficult to locate the responsible authority in case implementation issues arise. We list the responsibilities of different government agencies involved in implementation of MNREGA in the Table below.

Stakeholder Responsibilities
Gram Sabha (a) recommending works; (b) conducting social audits on implementation every six months; and (c) functioning as a forum for sharing information.
Gram Panchayat (a) planning works; (b) receiving applications for registration; (c) verifying applications; (d) registering households; (e) issuing job cards, (f) receiving applications for employment; (g) issuing detailed receipts; (h) allotting employment within 15 days of application; (i) executing works; (j) maintaining records; (k) convening Gram Sabha for social audit; and (l) monitoring implementation at the village level.
Intermediate Panchayat (a) consolidating Gram Panchayat plans into a Block plan and (b) monitoring and supervision at the block level.
Programme Officer (PO) (a) ensuring work to applicants within 15 days; (b) scrutinising Gram Panchayat annual development plans; (c) consolidating proposals into a Block plan and submitting to intermediate panchayat; (d) matching employment opportunities with demand for work at the Block level; (e) monitoring and supervising implementation; (f) disposing of complaints; (g) ensuring that Gram Sabha conducts social audits; and (h) payment of unemployment allowance.
District Panchayat (a) finalizing district plans and labour budget; and (b) monitoring and supervising at district level.
District Programme Coordinator (DPC) (a) ensuring that the scheme is implemented according to the Act at the district level; (b) information dissemination; (c) training; (d) consolidating block plans into a district plan; (e) ensuring that administrative and technical approval for projects are obtained on time; (f) release and utilisation of funds; (g) ensuring monitoring of works; (h) muster roll verifications; and (i) submitting monthly progress reports.
State Employment Guarantee Council (SEGC) (a) advising the state government on implementation; (b) evaluate and monitor implementation; (c) determining the "preferred works" to be taken up; (d) recommending the proposal of works to be submitted to the state government; and (e) prepare an annual report to the state legislature.
State Government (a) wide communication of the scheme; (b) setting up the SEGC; (c) setting up a State Employment Guarantee Fund; (d) ensuring that dedicated personnel are in place for implementation, including Gram Rozgar Sahayak, Programme Officer, and technical staff; (e) ensuring state share of the scheme budget is released on time; (f) delegation of financial and administrative powers to the DPC and Programme Officer if necessary; (g) training; (h) establishing a network of professional agencies for technical support and quality control; (i) regular review, monitoring, and evaluation of processes and outcomes; and (j) ensuring accountability and transparency.
Central Employment Guarantee Council (a) advising the central government on MNREGA matters; (b) monitoring and evaluating implementation of the Act; and (c) preparing annual reports on implementation and submitting them to Parliament.
Ministry of Rural Development (a) ensuring resource support to states and the CEGC; (b) regular review, monitoring, and evaluation of processes and outcomes;  (c) maintaining and operating the MIS to capture and track data on critical aspects of implementation; (d) assessing the utilization of resources through a set of performance indicators; (e) supporting innovations that help in improving processes towards the achievement of the objectives of the Act; (f) support the use of Information Technology (IT) to increase the efficiency and transparency of the processes as well as improve interface with the public;  and (g) ensuring that the implementation of NREGA at all levels is sought to be made transparent and accountable to the public..
Source: Operational Guidelines, National Rural Employment Guarantee Scheme, Ministry of Rural Development.

Government owned Oil Marketing Companies (OMCs) raised the price of petrol by Rs 6.28 per litre on May 23, 2012.  After the inclusion of local taxes, this price hike amounts to an increase of Rs 7.54 per litre in Delhi.  India met 76 per cent of its total petroleum requirement in 2011-12 through imports.  Petrol prices have officially been decontrolled since June 2010.  However, it has been argued by experts that prices of petroleum products have not been increased sufficiently in order to pass on cost increases to consumers.  The inability to pass on international crude prices to consumers has affected OMCs more in recent months due to the depreciating rupee, which has further increased their losses.  The total under recoveries faced by OMCs for diesel, PDS kerosene and domestic LPG for 2011-12 stands at Rs 138,541 crore.  It was recently announced that the OMCs will receive Rs 38,500 crore from the Ministry of Finance to partially compensate for the high under recoveries. The prices of diesel, LPG and kerosene, which are responsible for the large under recoveries, are unchanged.  Experts suggest that the price hike would have a limited impact on inflation, since petrol has a weightage of around 1 per cent on the Wholesale Price Index, whereas diesel has a weightage of around 4.7 per cent.  The petrol price hike is unlikely to have an impact on the fiscal deficit, since petrol prices are technically deregulated.  Reports suggest that a panel of ministers is due to meet on Friday to discuss diesel, kerosene and LPG prices. In a 2010 report, the Expert Group on "A Viable and Sustainable System of Pricing of Petroleum Products" (Kelkar Committee) observed that given India’s dependence on imports and rising oil prices, domestic prices of petroleum products must match international prices.  It stated that price controls on diesel and petroleum in particular had resulted in major imbalances in consumption patterns across the country.  This had also led to the exit of private sector oil marketing companies from the market, and affected domestic competition.  Its recommendations included the following:

  • Since petrol and diesel are both items of final consumption, their prices should be market determined at both the refinery gate and the retail level.
  • An additional excise duty should be levied on diesel cars.
  • A transparent and effective distribution system for PDS kerosene and domestic LPG should be ensured through UID.
  • Price of kerosene and domestic LPG should be increased by Rs 6/litre and Rs 100 per cylinder respectively.  The prices should be periodically revised based on growth in per capita agricultural GDP (for kerosene) and rising per capita income (LPG).

Reports suggest that a partial rollback of petrol prices might be considered soon.