Fund misappropriation in most states: Govt data

The Centre has halted funds under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for West Bengal since March 2022, citing "financial misappropriation", even as data obtained from the Union ministry of rural development shows a majority of states reporting misappropriation of the federal scheme funds,

- Abhishek Angad

NEW DELHI: but none of them has faced restrictions in the last three fiscal years as the eastern state has.

The ministry in its action taken report (ATR) on social audits across states—a statutory requirement under MGNREGA—said that as on March 29 this year, the total misappropriated amount across states in 2024-25 stood at ₹193.67 crore, of which ₹10.29 crore has been recovered, translating to a recovery rate of 5.32%. In terms of closure of misappropriation cases, only 10.58% or 15,854 cases out of the total 149,000 were resolved, according to the data available on the government's MGNREGA website.

Among the states, Andhra Pradesh, which received ₹7,558.95 crore central funds under MGNREGA for 2024-25, has reported misappropriation of funds to the tune of ₹45.57 crore, with only ₹79.45 lakh (or 1.74%) being recovered. Similarly, Karnataka, which received ₹5,557.32 crore funds from the Centre, misappropriated ₹41.58 crore, with only ₹3.38 crore (or 8.14%) being recovered. Bihar reported ₹2.66 crore in misappropriation, with merely ₹6.08 lakh (or 2.29%) being recovered while receiving ₹6,723.31 crore funds from the Union government.