The Cabinet Committee on Economic Affairs (CCEA) on Wednesday gave its approval for direct release of wages to workers under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to ensure better implementation by and empowerment of States.

The move will improve overall efficiency in implementation, while workers are assured of wage payments on the second day of the pay order generation, said an official statement.

Despite implementation of the electronic Fund Management System (e-FMS) earlier, delays had been recorded in the release of funds to pay workers by the Centre.

The wage component of the rural employment guarantee scheme, which is the responsibility of the Centre, will be released directly to workers’ accounts based on a transfer order to be generated by States’ implementing agencies, as per the procedures laid out by the Rural Development Ministry.

“Gram panchayats would be empowered to take up work according to the agreed labour budget without struggling for release of funds. State governments would be able to spend more time in planning and improving the process efficiency, without the botheration of trying to manage funds for implementation,” the statement said.

The statement added that the Central government would gain by releasing “what is actually expended” and that “there will be greater transparency in movement of funds and lesser levels of corruption”.

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