Why We Need Social Audits in the MGNREGS

Devi is an Mahatma Gandhi Rural Employment Guarantee Scheme worker, whose life was plagued by precarity as she waited for her wages for over a year, holding on to fading hope. Her situation represents a blatant violation of the provisions of the MGNREGA, which guarantees 100 days of employment in Rural India with the payment of wages within 15 days of completion of work.

Likewise, Nagaraju suffered a loss of wages as his attendance was marked incorrectly. Many more workers across the country face similar issues everyday, indicating that these cases are not isolated. These transgressions, though seemingly trivial, have profound implications on the lives of workers and ultimately, the impact of the programme as a whole. This underpins the need for a mechanism that keeps a check on the implementation of the policy.

Social audits serve this very purpose, aiming to establish transparency and accountability by an independent body. This article presents an overview of the exercise from my experience in participating in the audits of MGNREGS, in the villages of Thakkellapahad, Barampur and Arli(k) in Telangana, as part of my course on Data, Democracy and Development at Azim Premji University in Bengaluru.

While conventional financial audits examine the financial records of entities, social audits transcend these objectives by ensuring equity and involvement of communities1. What makes the exercise truly remarkable is its role in fostering the active participation of people who are directly affected by the programme. Social audits enable an ordinary worker from a village to exercise her right to scrutinise the functioning of a policy. Funds for these come from 0.5% of the MGNREGS budget. Further, they are recognised by the Comptroller and Auditor General of India (CAG).

Also read: Demand For Work Under MGNREGS Goes Up, Actual Job Creation Declines: Report

The audit process is incredibly comprehensive with differences in implementation displayed across states. In Telangana, it is conducted by the Society for Social Audit, Accountability and Transparency (SSAAT). A single round of the process spans around 14 days and is carried out in multiple phases.

The first phase focuses on document verification, selection and training of Village Resource Persons (VRPs), the primary members in the field. The VRPs are selected from the families of MGNREGS workers, reinforcing that it is a people-led process. They work under Block Resource Persons (BRPs) at every stage of the operation. Following their training, the next phase unfolds at the Gram Panchayat (GP) level. Tasks here mainly entail checking muster rolls (that mark attendance) along with payment slips (that record payment of wages) and worksite verifications of projects within the ambit of the programme. 

During our door-to-door visits to check attendance and payment of wages, we came across several discrepancies.

For instance, Kaveri, from the Thakkellapahad panchayat, was entitled to receive Rs 12,000 as wages. However, she was paid only a sum of Rs 6,000. The transactions were processed by the post office savings bank. Although Kaveri received a message on her mobile phone when she was paid her wages, she did not have the technological knowledge to operate it. With these messages remaining as the only proof of payments, she was helpless. Social audits play a crucial role in uncovering these issues and drawing attention to them.

Apart from identifying such issues, the team members raise awareness about the exercise and MGNREGS through a range of activities – displaying charts, putting up wall paintings and conducting rallies. Chanting slogans like “Upaadi leni gramalu, velugu leni deepalu (villages without employment are like lamps without light)," they actively encourage all villagers to join the programme. Following these measures, the team documents a detailed report with inconsistencies observed from the audit before preparing for the Gram Sabha. 

An image clicked during a gram sabha of MGNREGS workers. Photo: By arrangement.

The Gram Sabha is a platform for people to raise their concerns about the programme. While we noticed women’s active engagement during our door-to-door visits and awareness measures, their participation in the Gram Sabha was abysmal. This is quite striking, given that they comprised a significant part of the workforce. A conversation with a few members of the team revealed that this was possibly due to the restrictions placed by their husbands. It is unfortunate that women are unable to exercise their rights pertaining to matters as basic as jobs and wages, despite the institutions allowing them to do so. Their disproportionate representation raises broader questions about their involvement in democracy.

Once the audit is conducted in all GPs, a public hearing is organised with the District Rural Development Officer (DRDO) as the presiding officer. Discrepancies such as misappropriation, process violation and financial deviations are highlighted. Redressal measures could take different forms – warnings, apology letters, payment of penalties and possible suspension of the concerned officers. Finally, the audit round concludes with data entry online. Thus, audit findings are instrumental in resolving the issues of workers and identifying the authorities responsible. They play a crucial role in helping check for corruption in the implementation of the scheme. 

The entire process of social audits, however, is challenging at multiple levels. The VRPs and BRPs, who bolster the operation on the ground, are buried in heavy and repetitive paperwork. Moreover, grappling with long working hours and poor accommodation are day-to-day challenges. When the registered VRPs do not participate in the process, the BRPs bear an overwhelming burden of their work in order to ensure the smooth completion of the operation. Multiple revisions of records due to the reorganisation of districts and states further amplify their difficulties. In addition, interference by the authority implementing the scheme can lead to manipulation of findings. While the mechanism offers employment opportunities to many, in some blocks, we noticed that the audit unit was severely understaffed. The team lacked technically skilled members who would ensure technical assistance to provide more insights into the performance of the villages. Further, following up on the process after its completion remains a key area for improvement. 

Social audits can be a powerful mechanism to increase democratic participation, check corruption and prevent elite capture. The shortcomings in the auditing process can largely be attributed to the limited funds allocated for social audits. The members emphasised that the current budget was insufficient and required an increase. Budgetary constraints weaken the magnitude of the activity, undermining its impact. A single audit round incurs a cost of about Rs 10,000. While MGNREGS social audits are required to be conducted twice a year, the tight budget allows just one. The lack of adequate resources impedes progress, pushing millions who depend on the programme into a permanent state of despair. 

These challenges call for institutional and logistical improvements to enhance the effectiveness of social audits. Realising the broader objectives of accountability and transparency demands concerted efforts from different levels of institutions to increase funding, advance technical expertise and strengthen worker participation. We are in the midst of the peak season for MGNREGS work. To restore people’s faith in the programme, it would be prudent to ensure that social audits are adequately budgeted, conducted and immediate action is taken based on its findings. Addressing these issues is critical to enhancing the livelihood of workers like Devi, who continue to rely on the effective implementation of MGNREGA for their survival.

Note: Names of all individuals mentioned in this article have been changed to ensure anonymity.

Niharika Gowthaman is a student of BA Economics and Interdisciplinary Studies Minor in Data, Democracy & Development, Azim Premji University, Bengaluru. They can be reached at niharikagowthaman@gmail.com.

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