New Delhi: The Centre’s flagship welfare scheme, Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) is likely to face the consequences of the rampant corruption in its implementation, as the Finance Ministry is likely to cut down its budget allocation for the coming fiscal.

According to the sources, the Central Government’s ambitious rural development scheme may witness a reduction of about Rs 10,000 crore in its budget allocation for the coming financial year.

The poor performance of the country’s landmark employment scheme meant for the unprivileged people in the rural parts of the country and the unabated irregularities reported in its implementation this year are the apparent reasons behind the assumed move.

It is noteworthy that observing the continuous reports of corruption and malpractices in the implementation of the scheme from several states, especially Uttar Pradesh, the Rural Development Ministry had asked the Comptroller and Auditor General (CAG) to conduct financial and performance audit of UP along with 11 other big states besides investigating the corrupt practices in it.

It has been reported that out of Rs 40,000 crore which was allocated for the financial year 2011-12, Rs 30,000 core has remained unspent.
Hence, the minimal utilisation of central funds has forced the Finance Ministry to trim the scheme’s share of budget.

It is believed that the Finance Ministry has taken the consent of the Rural Development Ministry for the move.