State Fund created for smoother operation of MGNREGA schemes

GANGTOK, 10 April: The State Government has formulated the Sikkim State Employment Guarantee Fund Rules, 2012, under the Mahatma Gandhi National Rural Employment Guarantee Act. The rules provide for the establishment of the Sikkim State Employment Guarantee Fund (SSEGF) with the objective of ensuring operational flexibility, timely and smooth flow of the funds corresponding to labour demand and implementation needs.
The State Fund so established will be utilized to meet expenditure related with the implementation of schemes under MGNREGA, including payment of Wages- unskilled, semi skilled and skilled, Cost of material component, Unemployment Allowance, Compensation for delayed wage payment, Monitoring, Evaluation, Studies, Technical assistance for planning, Training, Expert consultation, Field visits, any other expenditure of the Council and Administrative expenses subject to the ceiling limit prescribed by Central Government from time to time.
In connection with the establishment of this fund, a single nodal Agency by the name of “Society for Proper Management and Administration of the State Fund” will be registered to strengthen the present fund system of MGNREGA. A Governing Council with the Secretary, RMDD as Chairperson and the Project Director, MGREGA as member secretary, will also be established.
As per the rules now instituted, all labour budgets of the districts will be scrutinized by the Council and forwarded to the State government with the Council also reviewing the overall performance of the Scheme in the state and making appropriate recommendations.
It will ensure the smooth flow of funds from the centre to the State Fund and on to the District Programme Coordinator. There will be review of work completion reports and utilization certificates submitted by the DPCs and besides, the Council will also ensure compliance of the guidelines and orders of the Scheme by the government for financial management. Apart from appointing the auditors to audit the accounts of the scheme it will review the audit reports as well.
The State Fund will now be maintained in a separate interest bearing Savings Bank Account in a Nationalized Bank which shall be non-lapsable and it is further directed that the state government or any other authority is not to create any encumbrance on the State Fund.
The source of the state fund will be the funds received from the centre under the MGNREG Scheme.
The Member Secretary shall monitor the operation of the State Fund and furnish audited accounts Statements and Utilization Certificates to the Ministry of Rural Development, State Government and before the Governing Council. Within three months after the end of each financial year the Member Secretary shall furnish the annual report on account of ‘Sikkim State Employment Guarantee Fund’ to the State Employment Guarantee Council and State Government.