Ph.D.

End Term Examination

On

“ EFFICACIES AND IMPEDIMENTS IN THE IMPLEMENTATION OF

SOCIAL AUDIT RULES OF MGNREGA: A CASE STUDY OF BADGAM
DISTRICT OF JAMMU AND KASHMIR”

Submitted By

(Mohd Younis Mir)

Registration no. 12021111

DOCTOR OF PHILOSOPHY

IN

(Public Administration)

Under the Supervision of

Dr. Deepak Sharma

Assistant Professor

LOVELY PROFESSIONAL UNIVERSITY

PUNJAB

September 2022
 CHAPTER: 1

INTRODUCTION TO PROPOSED RESEARCH WORK

Title of the proposed work:

“ EFFICACIES AND IMPEDIMENTS IN THE IMPLEMENTATION OF

SOCIAL AUDIT RULES OF MGNREGA: A CASE STUDY OF BADGAM
DISTRICT OF JAMMU AND KASHMIR”

Objectives of Proposed Work:

1. To discern the meaning and academic evolution of the concept of social audit.
2. To elaborate on the processes and practices involved in the social auditing task of
MGNREGA.
3. To point out the origin and implementation of the social auditing process as part of
MGNREGA.
4. To assess the awareness level of Panchayat Members and Gram Sabha members about
the Social Audit of MGNREGA in district Badgam of Jammu and Kashmir.
5. To find out the hurdles in the effective implementation of Social Audit in MGNREGA in
district Badgam of Jammu and Kashmir.
Proposed methodology:

Proposed methodology according to the objective wise is given in the table no. 1

Objective Sample size Instrument/ Sample Level

Tool/ sample type (State/N
design etc. to (University ational/
beused level/Industry Internat
level/NGO’s/ ional)
specific
community
etc.)

1. To discern the meaning Secondary Source Debates and Policies of National

and academic evolution of of Data i.e. Policy measures Government at level.
the concept of Social Research articles, local level.
Audit. case studies.

2. To elaborate on the Secondary Source Debates and Policies of National/

of Data i.e. Policy measures Government at State
processes and practices
Research articles, Local Level Level and
involved in the social case studies, District
policies by State level
auditing task of
government.
MGNREGA.

3. To point out the origin Secondary Source Debates and Social welfare National/
of Data i.e. Policy measures policies of govt State
and implementation of the
Research articles, at local level Level and
social auditing process as case studies, District
policies by State level
part of MGNREGA.
government.
4. To assess the 400 respondants Primary Data Citizens, Gram District
from 10 blocks on through Structure panhayat Level and
awareness level of
random sampling. Interview members, MCL
Panchayat Members and (250 respondants Schedule (For Gram sabha Zone
from gram sabha, respondents) and members. Level
Gram Sabha members
75 from social audit In-depth Interview
about the Social audit of committee, 75 from (For Officials).
gram panchayat
MGNREGA in district
members, 30
Badgam of Jammu and respondants from
respective
Kashmir.
department like
BDO’s, DPO’s etc)

5. To find out the hurdles 400 respondants Primary Data Citizens, Gram District
from 10 blocks on through Structure panhayat Level,
in the effective
random sampling. Interview members, block
implementation of Social (250 respondants Schedule (For Gram sabha level.
from gram sabha, respondents) members
Audit in MGNREGA in
75 from social audit In-depth Interview Implementing
district Badgam of Jammu committee, 75 from (For Officials) officials
gram panchayat
and Kashmir.
members, 30
respondants from
respective
department like
BDO’s, DPO’s etc)
 CHAPTER: 2

LITERATURE REVIEW

Title of the research: EFFICACIES AND IMPEDIMENTS IN THE IMPLEMENTATION OF

SOCIAL AUDIT RULES OF MGNREGA: A CASE STUDY OF BADGAM DISTRICT OF
JAMMU AND KASHMIR.

Table 2: Literature survey till date

Detail of the journal/ Year of publication Indexing of journal Main findings or

Book/ Book chapter/ (Scopus/ SCI Index conclusion relevant to
website link etc.) proposed research
work.
Lakshmi, 2014 UGC care, DOAJ. Examined that the
Sundaramari
empowerment of
Impact of women is very much
MGNREGA on needed for the
Socio-Economic development of a

Empowerment of country. Thus various

provisions are made
Women in Palakkad
under the act and its
District of Kerala
guidelines that ensure
Jounal of Extension that women have
education
equitable and easy
access to work, decent
working conditions,
equal payment of
wages, and
representation in
decision- making
process. However, the
women of Kerala are
socio-economically
empowered when
compared to women
 in other states due to
their involvement in
Self Help Groups. In
this context, the paper
analyses the
contribution of
MGNREGA in
empowering women
socially and
economically and the
constraints faced by
them.

Kumar, Helaney 2015 Scopus Analyzed that the last

Registration, Issue
among the series of
and Management of
Job Cards under the wage employment
Mahatma Gandhi
programs is the
NREGA in Kerala
Commerce Spectrum Mahatma Gandhi
National Rural
Employment
Guarantee
Programme
(Mahatma Gandhi
NREGA). Obviously,
as an ambitious
program targeting the
acute unemployment
problem of the
country, the efficient
and effective
implementation of the
 program assumes
pivotal importance.
The study looked into
the process of
registration of
beneficiaries under
the Scheme and the
issue and
management of Job
cards. The highly
positive perception
score of the
beneficiaries in this
regard indisputably
confirms the existence
of a trouble-free and
efficient process of
Job Card registration
and management in
Kerala.

Sharma 2015 SCI The study analyzes

International journal
that efficient
of research in finance
and management. management
practices, processes,
and procedures, fund
management factors
that have designed or
have contributed to
the good
performance, and
 factors that may have
limited performance.
The study captures
the views of the
official stakeholders
i.e. data entry
operators,
accountants,
engineers, assistants,
mates, sarpanches,
ward members, etc.
The procedure of
allocation of the fund,
sufficient quantity of
funds, assessment of
fund allocation, and
their proper use with
efficient management.

Anand, Sangya 2017 Scopus Analyzes how social

audit is effective in
International journal
of social sciences rural employment. It
also ensures that
social audit processes
now emerged as a
way to empower the
poor and transform
social-political
structures in the
villages.
Zuniga 2018 SCI examined that there is
JSTOR Journal a general assumption
about the positive
effect of transparency
on accountability.
Even if, in theory, that
link seems to be
obvious, in practice
the relationship is not
always
straightforward.
Accountability and
transparency can take
dif ferent forms, and
the relationship
between them
depends on the extent
to which they are
designed to support
each other. Empirical
studies show that, in
some cases,
transparency is a pre
other cases,
transparency
requirementscondition
of accountability. In
can make
accountability
confusing and
difficult to achieve.
Varghese 2019 SCI Examined that
transparency,
Transparency, accountability and
participation (TAP)
Accountability and are some essential
elements for ensuring
Participation through democratic
governance. Social
Social Audit: Case of audit is an operational
instrument to reduce
MGNREGA in corruption by
empowering people to
Sikkim, India. scrutinize public
expenses, detect
corruption, and ensure
13th International
 accountability. Social
conference on Social audit is one of the
robust element of
Sciences and MGNREGS
(Mahatma Gandhi
Humanities National Rural
Employment
Guarantee Scheme) in
India as they work
through the
Panchayat, and
stimulate the public to
participate with a
sense of communal
accountability.
Afridi, Dhillon 2020 Scopus Social audits are
Efficacy of Top effective when
down audits and collective action
Community problems are less
Monitoring salient e.g. when
groups are
homogeneous when
the design is such that
community
participants feel
empowered e.g.
through elections to
the monitoring
committee,
information is not
useful by itself unless
accompanied by tools
to influence
outcomes, and finally,
there is not a clear
map between finding
corruption and
improving ultimate
outcomes.
Malla 2020 Scopus Argues that
MGNREGA is poorly
MGNREGA in implemented and is
Kashmir: An not functioning as a
Analysis of Labour guaranteed safety net
Market Outcomes for the poor
and Livelihood households that suffer
Security from job scarcity.
Considerable benefits
Indian journal of are directed towards
Human the non-poor, while
Development. several poor and
deserving households
are excluded. This
bias is a result of
rationing in local
distribution by
middlemen in
collusion with
bureaucrats to further
their political and
economic interests.
Afridi, Dhillon 2020 Scopus Analyzed that in the
Efficacy to top down case of top-down
auditing and audits the efficacy of
monitoring. audits depends on the
International journal type of punishment-
of social sciences electoral punishment
vs legal punishment,
the literature finds
that electoral
punishment is less
effective than legal
punishment.
Moreover, electoral
punishment depends
on whether voters are
aware of audit reports.
The type of service
being audited - the
opportunity for
corruption and the
clarity of rules and
regulations affect the
success of audits.
However, even when
top-down audits
succeed in cutting
down corruption, they
may not always lead
to better outcomes.
 CHAPTER: 3

WORK PROGRESS

Title of the proposed research: EFFICACIES AND IMPEDIMENTS IN THE

IMPLEMENTATION OF SOCIAL AUDIT RULES OF MGNREGA: A CASE STUDY
OF BADGAM DISTRICT OF JAMMU AND KASHMIR.

During Synopsis Presentation some of the suggestions were received from the panel members,
which were duly discussed with the supervisor.

Table: 3.1: Action Taken Report (ATR) for the recommendation received in the State-of-The-
Art Seminar (SAS) evaluation:

The Suggestion received Action taken against the Page number of the Justification in case the
from RAC member suggestion ( Scholar must report where a suggestion suggestion is not
highlight the incorporated is incorporated incorporated
action in yellow colour)

Recommended with slight The title has been 2

modification in the title as changed according to the
“Efficacies and suggestions provided by
impediments in the the panel.
implementation of Social
Audit rules of
MGNREGA: A case study
of Badgam district of
(Jandk)”.

Include more More literature 29,30,31,32,33,34,35,38,40,41

literature related to related to the topic is
the topic. added.
Research Gap Changed according 46
to the suggestions
provided by the
panel.
Objectives of the Changed according 47
study to the suggestions
provided by the
panel.
Research Questions Changed according 47
to the suggestions
provided by the
panel.
Research Change as per RAC 48,49
Methodology
Include more related Included more 50,51,52
to the social audit related to social
concept audit concept.
Progress of the proposed work

Table: 3.2Progress of the proposed work

Proposed Methodology Status of the Detailofw Expected Status of the

Objectives used to workdone orkdonesi outcome outcome (Data
achieve the tilldate nce last (Publication collection/manuscr
objective evaluation /IPR ipt or IPR
generation, application status,
etc.) etc
To discern the Exploratory Literature - Excepted -
meaning and and review good
academic Analytical continue publication
evolution of in due
the concept of course
Social Audit.

To elaborate on Exploratory Literature - Excepted -

the processes and review good
and practices Analytical continue publication
involved in the in due
social auditing course
task of
MGNREGA.
To point out Exploratory Literature - Excepted -
the origin and and review good
implementation Analytical continue publication
of the social in due
auditing course
process as part
of
MGNREGA.

To assess the Primary Data Preparing - Excepted -

awareness through Structure good
level of Structure Interview publication in
Panchayat Interview Schedule. due course
Members and Schedule
Gram Sabha (400
members about Respondents)
the Social
audit of
MGNREGA in
district
Badgam of
Jammu and
Kashmir.
To find out the Primary Data Preparing - Excepted -
hurdles in the through Structure good
effective Structure Interview publication in
implementation Interview Schedule. due course
of Social Audit Schedule In-depth
in MGNREGA (400 Interview.
in district Respondents)
Badgam of In-Depth
Jammu and Interviews for
Kashmir. 30 officials
from the
district.
 CHAPTER: 4

RESULTS & DISCUSSION

Results and Discussions chapter will be written after the Data collection.
 CHAPTER: 5

WORK PLAN FOR FUTURE

Table 5: Work plan for future

Objective of the Achievement till Future Plan Methodology, Detail of

proposed work date tools, process, incentive step,
etc. to be used process, etc. to
be utilized
To discern the Analysis of the Analysis of the Secondary NA
meaning and policy. policy will Source of Data
academic continue. i.e. Research
evolution of the articles, case
concept of Social studies, policies
Audit. by individual
countries, etc.

To elaborate on Analysis of the Interaction with Secondary NA

the processes and policy. the concerned Source of Data
practices officials. i.e. Research
involved in the articles, case
social auditing studies.
task of
MGNREGA.

To point out the Analysis of the Analysis of the Secondary NA

origin and policy. policy will Source of Data
implementation continue. i.e. Research
of the social articles, case
auditing process studies.
as part of
MGNREGA.
To assess the NA Interaction with Primary Data NA
awareness level the Panchayat through Structure
of Panchayat members, Gram Interview
Members and sabha members. Schedule (For
Gram Sabha respondents) and
members about In-depth
the Social audit Interview (For
of MGNREGA Officials).
in district
Badgam of
Jammu and
Kashmir.
To find out the NA Interaction with Primary Data NA
hurdles in the the Panchayat through Structure
effective members, Gram Interview
implementation sabha members Schedule (For
of Social Audit and concerned respondents) and
in MGNREGA officials. In-depth
in district Interview (For
Badgam of Officials).
Jammu and
Kashmir.

Signature of Scholar Signature of Supervisor

 1. INTRODUCTION

Development is being looked upon as a process to improve the lives of the people to provide
healthy and creative life. In facilitating this, the governance process needs to be effective and
efficient. This leads us to the crucial aspect of governance called Good Governance. The World
Bank popularized good governance in the year 1992. The bank came to realize that good
governance nurtures equitable development and it is an essential companion to sound economic
policies. The good governance agenda advocates freedom of information, a strong legal system,
and efficient administration to help the underprivileged sections' claim to equality; but these have
been most successful when backed up by strong political mobilization through social
movements, or political parties with a clear-cut mission.

Good governance is a tryst with trust, a commitment of the people, for the people, a social
contract for the greatest good, and the collective conscience of the community (Mishra, 2003).
Good governance is participatory, consensus-oriented, accountable, transparent, responsive,
effective and efficient, equitable and inclusive, and follows the rule of law. It assures that views
of the marginalized sections of society are taken into consideration and corruption is minimized.
Good governance with local government aims to engage with more members of the community
to get the best suggestions that serve the people of the community effectively and efficiently. It
makes the govt accountable to the general public for its decisions and policies. India is 2nd most
populous country in the world and most of the people are living in rural areas and are dependent
on the agriculture, in order to make development in the rural areas GOI came up with the
flagship program MGNREGA.

MGNREGA is a social security measure that aims to guarantee the “right to work”. The act was
passed in September 2005 by the parliament. This act enhanced livelihood security in rural areas
by providing 100 days of wage employment to every household whose members are volunteers
to do unskilled manual work. It is one of the largest welfare schemes in the country and it works
for the betterment of the people in the rural areas. In order to ensure the transparency and
accountability in the scheme, the Social Audit is a tool to curb corruption and makes the scheme
effective. The Social audit is the assessment and examination of the program or scheme to
compare the official results with the actual ground realities with the involvement of the people
who are working under the program or have done previous work. Funds that are granted by the
govt are not actually utilized by the officials at the ground level, to check this appropriation
social audit is a effective tool. The Social audit ensures transparency, accountability, people's
participation, social transformation, consultation and consent, and redressal mechanism for
grievances which enables the local bodies to move towards good governance. Funds that are
granted by the govt are not actually utilized by the officials at the ground level, to check this
appropriation social audit is a effective tool.

Table 1.1 Financial Misappropriation in MGNREGA for the financial year 2021-22

State/ UT Misappropriation Amount Total Amount Recovered

Haryana 1,58,886 0
Himachal Pradesh 3,34,74,679 35,57,863
Jammu and Kashmir 19,68,765 8,18,235
Jharkhand 4,40,479 0
Karnataka 20,78,21,906 1,63,06,272
Kerala 2,04,336 0
Telangana 13,18,68,227 55,43,132
Andhra Pradesh 86,37,77,180 2,35,67,697
Tamil Nadu 1,28,64,356 22,522
Source: www.nrega.nic.in

1.1 Accountability and Transparency

Need of accountability

Due to the adoption of the government’s public welfare approach, the rights of the administrative
executives have been increased so that they can solve the local problems at the local levels
themselves. But, there is a possibility of misuse of such powers by the authorities.

Meaning of Accountability

Accountability means being liable to be called to account or to be held responsible.

Accountability arises out of responsibility. It means an obligation of the officials to give a
satisfactory account of performance and how they have exercised powers. Its main aim is to
check wrong and arbitrary administrative actions.

Theoretical basis of Accountability

Agency Theory

Agency theory assumes that performance will suffer when the interests of the employees differ
from those of their employer or when the internal interests of an organization differ from its
external goals e.g improving health, education, etc for the targeted groups. According to the
Agency theory, the performance of an organization can be improved by putting in place the
interests of the employees more closely with those of their employers, principals, and governing
bodies through appropriate measures such as incentives and disincentives.

Stewardship Theory

Stewardship theory, in many ways, serves as an antithesis of Agency theory, as it emphasizes the
‘Theory Y’ of motivation (Madhani 14). This theory states that in a healthy corporate culture
built on honesty, integrity, and trust, there needs no emphasis on monitoring. This theory
highlights the existence of healthy working relationships between managers and shareholders,
which, in turn, helps minimize the costs of monitoring and control while increasing the speed of
decision-making and the autonomy of managers and executives. According to the stewardship
theory, managers and employees are trustworthy individuals, and as long as they are
compensated according to their needs, there is little to no risk of them abusing their positions and
causing harm to shareholders’ interests (Bosse and Phillips). Thus, stewardship theory advocates
management empowerment and the active role of shareholders in their own companies.

Administrative accountability in India

It is true that the administrative staff of the government in India is responsible for their senior
executives and these senior executives are responsible for the political executives. Hence, the
administrative executives are responsible to their political executives for their work, likewise, the
ministers are responsible to the general public for the promises they had made to them during the
time of the election. Thus, at every level of the administration employees are directly or
indirectly responsible to one or the other body. This chain of responsibility is called
administrative accountability.

Importance of accountability

1. Restrains corruption, Nepotism and Red tapism.

2. Ensures honesty in public servants due to fear of punishment.
3. Makes optimum use of available resources.
4. Ensures greater trust between the citizens and the govt.
 5. Timely completion of work.
6. Ensures interdepartmental coordination and cooperation.

Ways of ensuring Accountability in Administration

1. Make more and more use of RTI.

2. Create awareness among people through the citizen’s charter.
3. Inspection of the work to be done by the higher officials.
4. Punishing those who have not done their work as per the rules and regulations of the govt
through the institutions like Lokpal, Lokayukta, etc.

1.2 Transparency means the freedom of people to have access to government information. It
implies that the citizens and non-governmental organizations should enjoy reasonable free access
to all files and documents of governmental operations, decisions, and performance. It promotes
accountability in a democratic government and reduces the trust deficit between the government
and the people. Transparency allows stakeholders to collect information that may be critical to
uncovering abuses and defending their interests. Likewise, transparency increases the
accountability of Government officials. The declaration of the Right To Information Act (2015)
set the stage for transparency in the functioning of the government and its various agencies.
Under this Act, access to information from a public agency has become a statutory right of every
citizen.

Importance of Transparency

1. Transparency makes information of government programmes easily available to the

citizens.
2. The goal of public welfare can be easily achieved.
3. Transparency ensures participative govt.
4. Transparency increases the trust between the people and the government.
Ways of ensuring Transparency in administration

1. Role of Media.
2. Digital India program.
3. Establishment of vigilance institutions.
4. Right to Information Act 2005.
5. Social Audit.

Transparency leads to accountability in governance and accountability leads to participation

from citizens. Participation of the people ensures the success of democracy and the
establishment of good governance.

1.3 "Peoples' participation" has become standard rhetoric in India today. Different actors
interpret it differently. One view is that participation means getting people to agree to and go
along with a project which has already been designed for them, or to get the support of a few
leaders. This has been the approach in many development schemes that did not work. People did
not identify themselves with the assets created such as the hand pump or trees planted, nor did
they undertake the responsibility of maintenance of assets. "I manage, you participate", was the
dominant underlying principle behind such projects. These tended to try to make people aware of
their responsibility without giving them any authority to spend funds or to manage assets.
People's participation was then expressed not in a manner that would establish their rights over
assets, land, or its produce. The important question is, participation for whose benefit, and on
what terms?

Participation should include the notions of contributing, influencing, sharing, or redistributing

power and of control, resources, benefits, knowledge, and skills to be gained through beneficiary
involvement in decision-making. Participation is a voluntary process by which people, including
the disadvantaged (in income, gender, caste, or education), influence or control the decisions that
affect them. The essence of participation is exercising voice and choice and developing the
human, organizational, and management capacity to solve problems as they arise to sustain the
improvements. (Sexana 1998).

1.4 MGNREGA

Mahatma Gandhi National Rural Employment Guarantee Act or MGNREGA is a social security
measure that aims to guarantee the “right to work”. The act was passed in September 2005 by the
parliament. This act enhanced livelihood security in rural areas by providing 100 days of wage
employment to every household whose members are volunteers to do unskilled manual work.
Any rural household seeking manual work could register their name in the gram panchayat and
they will be provided with the job card. Under this scheme, a job is to be provided within 15
days of receipt of an application or from the date he seeks work and if they failed to do so, the
unemployment allowance would become payable to the rural household. To ensure transparency,
Social audits have been made mandatory in MGNREGA.

Latest developments in MGNREGA

1. Central government allotted more than Rs 10000 crore on November 25, 2021, for
MGNREGA Scheme. Key Points While allotting the fund, the central government stated that
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) is a demand-
driven scheme. The Government also clarified that during the financial year 2021-2022, more
than 240 crore person-days has been generated, so far.

2. Parliamentary Committee recently recommended increasing guaranteed days of work from

100 to 150 under the Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA), after observing that, MGNREGA is a last fall-back option for many people in
rural areas.

3. Giriraj Singh, Union Minister for Rural Development, and Panchayati Raj launched the
Ombudsman App for MGNREGA. This App is a step toward e-governance, and it will help in
accountability and transparency. This app will help the Ombudsman in carrying out their duties
in a transparent and accountable manner.
 The minister showed concern regarding the appointment of Ombudspersons, and that in many
districts the appointment of an Ombudsperson has yet to be made. Hence, all states and UTs have
been asked to work with the union government to make MNREGA more transparent by utilizing
the Ombudsperson App.
4. Fresh wage rates have been notified by the central government under the Mahatma Gandhi
National Rural Employment Guarantee Act (MGNREGA) for the financial year 2022-23.
Overview: Out of 34 Union Territories and states, 21 of them have received hikes of less than 5
percent. A 5 percent hike has been given to 10 states.

• Goa has recorded the highest increase with a 7.14 percent increase to Rs 315 per day in 2022-23
from Rs 294 per day in 2021-22.

• Meghalaya has seen the lowest hike with a 1.77 percent increase to Rs 230 per day from Rs 226
per day.

• Nagaland and Arunachal Pradesh also saw a hike of less than 2 percent.

• In Tamil Nadu, Assam, and Puducherry the hike was 2 to 3 percent.

• In Odisha, Maharashtra, Daman and Diu, and Dadra and Nagar Haveli there is an increase of 3 to
4 percent.

• In Uttar Pradesh, Gujarat, Rajasthan, Uttarakhand, Sikkim, West Bengal, Andaman & Nicobar
Islands, Himachal Pradesh, Andhra Pradesh, Punjab, and Telangana the wages have been
increased by 4 to 5 percent.

• In Chhattisgarh, Haryana, Bihar, Madhya Pradesh, Jammu & Kashmir, Jharkhand, Kerala,
Lakshadweep, Goa, and Karnataka the wages have been increased by more than 5 percent.

2. REVIEW OF LITERATURE
The literature review is very important in the sense that it makes a systematic review of available
resources and highlights both the strength and weaknesses of existing research, allowing one to
gain an understanding of a particular research domain. It provides an opportunity to think about
what has been done in the field. It helps in identifying the research gap which becomes a
justification for the research.

Shankar (2010) discussed the conceptual and operational problems associated with the social
audit of a government scheme. It argues that social audits have not performed well in the
National Rural Employment Guarantee (NREG) scheme because of three problems. First,
conceptually, it has been unable to resolve the question of the hierarchy. In a social audit, the
relationship between the auditors (who include villagers and NGOs) and the bureaucrats is
weakly hierarchical; the NGOs and villagers are part of the citizenry who elect political
representatives, and these politicians, in turn, oversee the bureaucracy implementing the scheme.
Second, operationally, the feeble hierarchical relationship weakens the enforceability of
sanctions against errant officials and produces a disconnect between the substantive goals of the
scheme and the procedural standards followed by bureaucrats. Third, the assumption underlying
the social audit that given a chance, the community will monitor such schemes is also
problematic. The paper highlights the arguments by assessing the performance of NREGA social
audits in three states — Andhra Pradesh, Rajasthan, and Madhya Pradesh.

Vij (2011) examined that the Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA) is the most expansive and ambitious program ever. In 2009/10 alone, over 380
billion rupees (US$8 billion) were spent to employ over 50 million households under this
scheme. To oversee such expansive coverage, an elaborate monitoring and evaluation system has
been enshrined in the law. It was also realized that non-state actors need to be included in the
monitoring process for collective accountability and ensuring transparency. Social audits are
unique collaborative governance mechanisms that are not only participatory program evaluation
exercises but also lead to the empowerment of the poor. They are a platform for the vulnerable to
raise their ‘voice’ and assert their ‘rights’; to hold the administration accountable and assume
collective responsibility, thereby potentially transforming social protection into social justice.

Das (2012) conducted different surveys all over the country in general and in the state of Orissa
in particular, it has been experienced that the true beneficiaries are not aware of the various
provisions of NREGA including the registration, issue of job cards, application for work,
allowance for not getting work within a stipulated time limit, extra wages for work beyond the
limited area, etc. The need is therefore to make the people more informative and empowered, so
that rural distressed rural poor will get the true benefits of the different targeted programs
including NREGA.

Naganagoud, Uliveppa (2012) examined that the overall objective of social audit is to empower
through better participation in the decision making as well as monitoring the implementation of
the activities by way of ensuring better quality works, the updated information of social audit by
gram panchayats should be placed before gram sabha.

Singh, Bhasin, Lama (2012) Underlining the critical role played by the MGNREGA, this paper
exemplifies the issues, challenges, and significance of MGNREGA particularly in the context of
rural India. Primary Data was collected using a structured questionnaire from 153 respondents
and Secondary Data has been used mainly from the official website of MGNREGA. The study
makes a comparative analysis between the select fifteen states of the Indian Union and provides
the framework for policy recommendations for the states regarding various parameters. F Test
indicates that there is a significant effect of a social segment on the participation rate. Three
major issues (a) Governance; (b) Quality of Life; and (c) Wage and Productivity have been
found as the most important factors after conducting the factor analysis. A rampant corruption
found in many states has been highlighted even among the well-performing states manifesting
the potent flagship program to be deceptive and skeptical about its functioning.MGNREGA has
been proved to be the largest employment program particularly, for rural India, and has
contributed to the increase in purchasing power by being a major source of income for the
bottom of the pyramid people in Society. It has helped in solving problems of rural distress but a
lot needs to be done. The wage rate should be increased and linked with inflation. It was also
found that the minimum number of days should be increased from 100 to 180. Women have
outperformed men in terms of productivity and their participation should be increased.

Rajasekhar, Lakha, Manjula (2013) with the help of primary data collected from the five-gram
panchayats in Chitradurga district in Karnataka the paper argued that although the documentary
evidence shows that social audits are conducted, they do not fulfill the main objective of
engaging the main beneficiaries of the scheme and making the scheme effective. The Social
audit process is compromised by the influence of the elite people which results in the exclusion
of the poor laborers for whom the scheme is primarily meant. The social audit could be more
participatory by ensuring that it is conducted impartially.

Shivaji (2013) examined that Social audits implemented in true spirit can initiate public
participation, dialogue, and scrutiny. It can help examine the relevance of purposes and
processes/, and it can ascertain the relevance and benefits of expenditure to the target group. To
make MGNREGA successful one needs to dispel the fear of social audit and put the process
under the hands of the workers to build the future of rural India.

Afridi, Iversen (2014) examined the impact of social audits on Mahatama Gandhi National
Rural Employment Guarantee Act delivery in Andhra Pradesh. Within a dynamic framework
where beneficiaries, auditors, and transgressors interact and learn, they found a positive but
insignificant impact of audits on employment generation and a modest decline in the leakage
amount per labor-related irregularity outcomes with high beneficiary stakes.

Bhaumik (2014) assessed a social audit conducted in the District of Purba Medinipur District in
the State of West Bengal in this regard. There are two dimensions; in a commercial term, the
social audit may be defined as an “assessment of the performance of an organization for the
society as a whole vis-à-vis an assessment of its total responsibility to the society”. This concept
of social audit is not applicable in the area of government accounting. In the case of government
accounting and auditing concept, the performance of the organization in discharging social needs
is not assessed, rather society as a whole is acting as an auditor to assess the performance of
various projects and schemes undertaken by the government agencies and their impact on the
development of the society.

Lakshmi (2014) examined that the empowerment of women is very much needed for the
development of a country. Thus various provisions are made under the act and its guidelines that
ensure that women have equitable and easy access to work, decent working conditions, equal
payment of wages, and representation in decision- making process. However, the women of
Kerala are socio-economically empowered when compared to women in other states due to their
involvement in Self Help Groups. In this context, the paper analyses the contribution of
MGNREGA in empowering women socially and economically and the constraints faced by
them.

Sissal, Sharma (2014) the basic objective of the research was to study beneficiaries’ perceptions
of the MGNREGA program in Doimukh Panchayat of Papum Pare district of Arunachal Pradesh.
As the scheme promises to provide 100 days job guarantee to the rural people to empower them
economically. The scheme has been receiving mixed responses from different parts/districts of
our country time and again. So it felt very necessary to study the MGNREGA in the context of
Arunachal Pradesh too. In this regard, a primary field study has been conducted with 50 job
cardholders of MGNREGA regarding their view on the program, and whether it has increased
their livelihood and brought any changes in their family position or not. The paper focuses on
some of the basic awareness issues like knowledge about days worked, wage rate, kinds of
activities undertaken, social audit, job card, etc.

Umdor (2014) examined that Social audit is a tool to bring community participation in the
implementation and monitoring of government schemes ensuring that beneficiaries are aware of
their rights and entitlements and can hold officials accountable for the performance of these
schemes. In the paper, it was examined and discussed the implementation of the social audit of
MGNREGA in Meghalaya and analyzed the findings of the social audits undertaken in 55
villages of Meghalaya, one of the northeastern states in India. The study of the process
of auditing shows that although in most cases social audits may have been conducted only for
compliance, there are instances where the audits have been able to detect anomalies in the
implementation of the scheme.

Bhat, Mariyappan (2015) examined that Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA) brought several changes in the lives of the rural poor people in
general and vulnerable sections of the rural population in particular by securing their livelihood.
MGNREGA has an objective to enhance livelihood security for the rural poor by providing at
least one hundred days of wage employment to every household whose adult members are ready
to do unskilled manual work. MGNREGA not only provides wage employment as an alternative
source of livelihood but also creates durable assets such as road construction, land development,
water conservation, and irrigation facility, which has a tremendous influence on different sectors
of the village economy.

Dutta, Sujoy (2015) examined whether Mahatma Gandhi National Rural Employment Guarantee
Act (MGNREGA) is accountable to ordinary citizens, and civil society's role in making the Act
viable. This study draws upon empirical evidence from two states of India - Andhra Pradesh
(AP) and Uttar Pradesh (UP). The findings suggest that this Act has been implemented relatively
well in AP, despite the state's dismal performance in the implementation of most welfare
programs. The political class in AP has taken a keen interest in the Act, rather than in using it to
amass wealth for their political activities. Social audits have been institutionalized with the help
of civil society organizations, providing a platform for the beneficiaries to voice their concerns
and negotiate their entitlements with the state machinery. But implementation has lagged in a
politically vibrant state like UP where local leadership, is accountable neither to citizens nor to
elected representatives, misappropriating resources from developmental funds and nurturing
factional politics. This has resulted in poor participation in rural institutions and loss of faith on
the part of citizens.

Jha (2015) briefly traces the evolution of Social Audit in MGNREGA and aims at analyzing the
efficacy of the Social Audit process in the East district of Sikkim in promoting good governance
through accountability and transparency. For this, coverage of GPs in Social Audit during 2013-
14 and 2014-15, issues raised and resolved during the Jan Sunwaii, recovery indicted vis-à-vis
amount recovered has been assessed and analyzed through obtaining of data from various
sources. The study revealed that Social Audit in Sikkim was approached with due seriousness
and enthusiasm by carrying out Social Audit through NGOs, followed by the establishment of an
Independent Social Audit Unit with a full-time Independent Director. In overall terms, the
coverage of GPs for Social Audit increased in the districts from 24 in 2013-14 to 26 in 2014-15.
Similarly, the issue raised during Jan Sunwaii increased from 364 to 374 in the same period
indicating increased people’s participation. There has however been a fall in issues resolved and
the amount recovered during 2014-15 over 2013-14. While the issue resolved fell from 133 in
2013-14 to 126 in 2014-15; the amount recovered dipped from 2,890 in 2013-14 to 1,614 in
2014-15. This indicated that accountability and transparency need further strengthening and
improvement in the district.

Kumar, Helaney (2015) examined that even after sixty years of the planning era in the country,
the situation of the rural poor could not be improved to the desired level. Though the percentage
of the population living below the poverty line declined from 45.3 percent in 1951-52 to 27.5
percent in 2004-05, the rural poverty rate stood at 28.3 percent as against 47.4 percent in 1951-
52. Though the unemployment rate in the rural areas was lower, the higher incidence of poverty,
especially in the rural areas of the country was a burning issue before the policymakers to
remedy. Evidently, all the erstwhile employment programs in the country up to 2005 were either
discontinued or merged with other programs as they could not produce the desired results in
employment generation and poverty reduction. The last among the series of wage employment
programs is the Mahatma Gandhi National Rural Employment Guarantee Programme (Mahatma
Gandhi NREGA). Obviously, as an ambitious program targeting the acute unemployment
problem of the country, the efficient and effective implementation of the program assumes
pivotal importance. The study looked into the process of registration of beneficiaries under the
Scheme and the issue and management of Job cards. The highly positive perception score of the
beneficiaries in this regard indisputably confirms the existence of a trouble-free and efficient
process of Job Card registration and management in Kerala.

Miwu, Ehili (2015) The social audit in any organization is to ensure public accountability in the
implementation of programs, laws, and policies. The social audit is a continuous process of
public vigilance. It is considered a means of promoting certain basic norms like transparency,
participation of people, consultation and consent of groups or individuals, accountability of
government functionaries, and redressal in public matters.

The Government of India as well as the Government of Arunachal Pradesh emphasize the use of
social audit to control corrupt practices and ensure accountability of the functionaries of welfare
and development programs, including MGNREGP. The social audit in the MGNREGA is
expected to identify the malpractices in the delivery of the program and pave the way for mid-
course corrections.
Sharma (2015) examined an empirical analysis based on experiences and observations of various
official executives of MGNREGA about the fund’s allocation procedure, its adequacy for
execution, proper utilization, leakages or misuses, and the scope of misuse of funds of
MGNREGA. The analysis is carried out using a conceptual framework. Especially, attempt to
identify various factors pertaining fund utilization that prove as beneficial for rural development.
The analysis focuses on identifying and appraising the conditions under which the significant
impact and result have been obtained that how the funds are allocated for the various works to
the creation of durable assets under MGNREGA. The analysis is followed by efficient
management practices, processes, and procedures, fund management factors that have designed
or have contributed to good performance, and factors that may have limited performance. The
study captures the views of the official stakeholders i.e. data entry operators, accountants,
engineers, assistants, mates, sarpanches, ward members, etc. The procedure of allocation of the
fund, sufficient quantity of funds, assessment of fund allocation, and their proper use with
efficient management.

Aggarwal (2016) A decade after coming into force, the Mahatma Gandhi National Rural Employment
Guarantee Act is suffering from a decline in employment, budget caps, delays in wage payments, and
rampant violations of workers' entitlements. An examination of the case of Jharkhand points to
reasons for this crisis, including the absence of a strong grievance redressal system, weak financial
institutions, acute shortage of functionaries, and indiscriminate use of technology. However, some
initiatives taken by the state government and civil society in the recent past open up new possibilities
for improving the program.

Bansal (2016) The general objective of the study is to investigate the social audits conducted
under MG NREGA in selected districts of Himachal Pradesh. The significant issues attached to
the study focused on the prime concerns including the difficulties in following the social audit
process; the social objectives of MG NREGS; effectiveness of the existing social audit
methodology i.e. process and mechanism to assess the achievement of social objectives; could
social audit help in achieving the social objectives of MG NREGS; and a suitable social audit
methodology to measure the achievement of social objectives in MG NREGS in HP. The scope
of the study extended to the three districts of Himachal Pradesh i.e. one Gram Panchayat each
from the high hills district, middle hills district, and low hills district besides representing three
phases of MGNREGA implementation. The hypothesis and the study objectives were framed to
focus main attention on the prevailing social audit practices and methodologies fulfilling the
social objectives. The overall flexible research design provided an opportunity for consideration
of different aspects of the problem followed for the exploratory study with a non-probability
sampling design. The information was collected from the three main official functionaries, and
two main stakeholders i.e. workers and non-workers in the selected gram panchayats through
structured schedules. Besides primary data, various orders issued by the government regarding
social audits in MG NREGS were collected and analyzed. The descriptive method of analysis
with SPSS software besides a model was adopted in the study. The methodologies followed in a
social audit of MG NREGA in Himachal Pradesh are required to be strengthened to ensure social
accountability through the fulfillment of social objectives. The three samples of Gram
Panchayats were found to be below the benchmark for performance on social objectives and
achievement of social accountability. Hypothesis testing has proved that the methodologies
demanded effectiveness for the fulfillment of social objectives for the cause of social
accountability. The conduct of social audit was found to be better in the gram panchayat
supported by a non-governmental organization in comparison to gram panchayats supported by
other institutions.

Pujara (2016) examined that a social audit may be initiated by a firm that is seeking to improve
its cohesiveness or improve its image within society. If the results are positive, they may be
released to the public. For example, if a factory is believed to have a negative impact, the
company actually benefits society. may have a social audit conducted to identify actions that
actually benefit society.

Sharma (2016) The main objective of the present research work was to evaluate the performance
of MGNREGS in terms of its effective implementation (physical &financial), awareness on the
part of the rural people, opinion and perception of beneficiaries about the MGNREGA, and
compliance to its guidelines as also impact of the program in the study area. The study has
covered all nine blocks to get adequate representation. Based on physical and financial
performance from each block, one of the high-performing and low-performing panchayat has
been selected for the present study. A combination of methods was employed in the study.
Primary data has been collected through a well-designed interview schedule, and focused group
discussion; personal interviews were also held with beneficiaries, implementing agencies, bank
officials, and panchayat officials. Along with the primary data, secondary data has been collected
which covered such relevant aspects as the performance of MGNREGA in terms of physical and
financial aspects at national, state, and district levels.

Shah (2016) analyzed that Given the reverses the Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA) suffered in 2014–15, it seemed likely that the program may be shut
down. However, following vehement protests both within and outside Parliament, the
Government of India decided to finally throw its full weight behind the program. Nevertheless,
should not development economists address the critiques against the program and assess whether
it is worth spending such large sums of money on it every year? This paper responds to the
various facets of the critique against MGNREGA. In the very nature of our response to the
critique lies a vision for the program going ahead. Our response can be sustained based on that
vision. The paper provides a detailed explanation of why we reject the fundamental critiques of
MGNREGA. At the same time, we accept many of the internal critiques as extremely important.
The MGNREGA may be described as “both a major success and a huge failure”. But it would be
wrong, therefore, to throw the baby out with the bathwater. Rather, the key is to learn from the
successes of MGNREGA through a careful analysis of the conditions that have made these
successes possible. The paper ends with an outline of the unfinished agenda for MGNREGA
reform, without which its true potential will continue to remain unfulfilled.

Anand, Sangya (2017) analyzes how social audit is effective in rural employment. It also ensures
that social audit processes now emerged as a way to empower the poor and transform social-
political structures in the villages.

Narayan (2017) examined that MGNREGA is the program adopted for rural development in
India. The scheme is to provide employment to at least one person in the family for hundred
working days in a year. It gives more importance to reducing the volume the poverty in rural
areas and with the employment generation. These employment-generating programs lead to
rural women empowerment and rural development. Through these programs, women get more
employment opportunities. It helps to raise their family income and standard of leaving. So the
present study is titled “Role of MGNREGA for Rural Development: A case study of Choondal
Grama Panchayat in Thrissur District”

Roy (2017) examined that to plug the loopholes and achieve good governance, a social audit has
been integrated into the MGNREGS in June 2011. The idea of social audit is already put into
practice in all states since the notification of the MGNREGA audit schemes rules and almost
80% of districts are already covered under the compulsory social audit scheme. In Tripura social
audit has increased the delivery capacity of workers, planners, and even decision-makers. The
effectiveness of social audit will increase manifold if the functioning of PRIs and Gram Sabhas
are further strengthened and the perception of the stakeholders about the duties of panchayats
becomes clear.

Salvi (2017) examined that irrespective of the nature of public or private, the essence of social
audit lies in the interest and honesty of the organizations. In govt sector, it requires a massive
consciousness among the public besides top-to-bottom bureaucratic and political will with
improved methodology with ethical values to achieve the desired goal.

Ganaie (2018) examined that the Rural Employment Guarantee Scheme is one of the most
important employment-providing schemes in India backed by legislation. For any program to
succeed it must be implemented effectively at all levels. The Mere introduction of any program
never means the end of the problem or the achievement of the set objectives. A poorly organized
program is bound to prove to be a failure despite its massive investment because it gives rise to
several deficiencies & inefficiencies like slow and poor decisions, lack of coordination among
the different levels and line departments, poor specification of duties, etc. The present paper
makes an effort to know about the transparency and accountability features of the sample
respondents and also to know how much MGNREGA workers are aware of the provision.

Khuntia, Raja (2018) The Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA), launched on 2nd February 2006, has empowered the Gram sabha to hold regular
social audits of all the projects under the scheme for ensuring transparency and social
accountability. Such kinds of social auditing mechanisms become essential in flagship schemes
that are heavily financed by the State and aimed at specific policy goals. When the available
literature on the implementation of MGNREGA speaks about its effect on the decline of internal
migration, reforming rural wage patterns, and the building of rural assets, there is very little
attention devoted to the actual implementation of the MGNREGA in the letter and spirit of the
Act. In reality, the conduct of social audits has not been uniform across the country as many
states still lag in having an effective social audit. Social audits conducted sporadically have
brought out the issues in the implementation of the Act and hence it is argued that MGNREGA
has not yet been successful in achieving its goal of overall empowerment of rural poor due to
manifold challenges embedded in the process of its implementation itself. It is in this context,
that the present paper intends to highlight the reality of the conduct of social audits under
MGNREGA in the Kalahandi district of Odisha state in India.

Majeed, Mohsin (2018) The study attempts to examine the influence of MGNREGA on the
socio-economic conditions in district Budgam of Jammu and Kashmir state. The Act was
extended to the state in a phased manner from February 2006. The study tried to evaluate the
effect of the program on income, employment, and financial inclusion of the rural community of
the district. In addition, the study also tried to find the effect of this program on agriculture.
During the study, both primary and secondary data were used to achieve the given aims of the
study. The study begins by bringing forth the socio-economic profile of the sample beneficiaries.
This was followed by an analysis of data-keeping into consideration the objectives of the study.
The study finds that the majority of the sample beneficiaries belonged to the economically
weaker sections of society and were associated with manual labor. It was also found that the
majority of the landowners were marginal farmers and as far as literacy level is concerned the
majority of the sampled beneficiaries were having no formal education. The program has made a
considerable impact as far as the rural economy is concerned. In terms of direct impact, the
program has helped in increasing the employment and income of rural people.

Maiorano, Das, Masiero (2018) examined that Does decentralization promotes clientelism? If
yes, through which mechanisms? We answer these questions through an analysis of India’s (and
the world’s) largest workfare program, the Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA), in two Indian states: Rajasthan and Andhra Pradesh (AP). The two
states adopted radically different implementation models: Rajasthan’s decentralized one stands in
contrast with Andhra Pradesh’s centralized and bureaucracy-led model. Using a mixed-method
approach, we find that in both states local implementers have incentives to distribute
MGNREGA work in a clientelistic fashion. However, in Rajasthan, these incentives are stronger,
because of the decentralized implementation model. Accordingly, our quantitative evidence
shows that clientelism is more serious a problem in Rajasthan than in AP.

Subba (2018) examined that Social Audit has been considered a tool to bring transparency and
accountability to the implementation of the MGNREGA. Section 17 of the Act mandated
conducting a social audit of the scheme by Gram Sabha. In India, Andhra Pradesh is the only
state in the country to initiate Social Audit in MGNREGA in the year 2006. The concept of
Social Audit was first initiated in developmental schemes by MKSS of Rajasthan for bringing
transparency in wage payments to workers and quality of work done through assessing official
documents. In Sikkim social audit was initiated in the year 2008 in traditional ways there was no
formal institution for the conduct of Social Audit in the state of Sikkim. MGNREA Audit of
Scheme Rules 2011 mandated the institutionalization of Social Audit by states in MGNREA
Schemes. As per para 4 of the rules, the Sikkim government had identified the Voluntary Health
Association of Sikkim as the Social Audit Unit, Sikkim. The organization has vast experience in
conducting Social Audits in the state of Sikkim and is a leading NGO in the state. Social Audit
Unit, Sikkim conducted a pilot social audit in the first phase to strengthen the social audit
process and came up with the Sikkim Model of Social Audit which starts with a kick-off meeting
and concludes with an Exit conference. Submission of Action Taken (ATR) on the issue raised
by the social audit team is part of the social Audit process in Sikkim. Making ATR submissions
and follow up on the same was done by the department and social audit unit in Sikkim, as
Sikkim had been considered the second state after Andhra Pradesh for making ATR mandatory
and keeping track of the same since 2013.

Zuniga (2018) examined that there is a general assumption about the positive effect of
transparency on accountability. Even if, in theory, that link seems to be obvious, in practice the
relationship is not always straightforward. Accountability and transparency can take different
forms, and the relationship between them depends on the extent to which they are designed to
support each other. Empirical studies show that, in some cases, transparency is a pre other cases,
transparency requirements condition of accountability. It can make accountability confusing and
difficult to achieve. Being aware of the different types of accountability and transparency and
how they can relate to each other is the first step toward more efficient accountability and
transparency.

Babu (2019) analyzed that Sustainable development depends on the complex set of interactions
between the natural environment, the society we live, and economic conditions. The relationship
between humans and the environment is like 'one will give and the other will take, during which
equilibrium may get distracted. Economics leverages the growth potential of society and society
is influenced by the natural environment. To maintain the equilibrium between these three pillars
of sustainable development there is a need to link them. Transparency during the execution of
large-scale projects plays a pivotal role in achieving sustainable development and enables the
balance between the environment, society, and economy. In recent times, the governments of
many countries have adopted programs for improving living standards, food security, and
improved nutrition, health, clean water and sanitation, education, and other aspects of sustainable
development goals. The article reports the transparency methods that are implemented for the
MGNREGA project and articulates the role of transparency in linking the three dimensions of
sustainable development: environment, society, and economics. The paper emphasizes that the
mechanism of transparency should reside on all sides of the triangle of sustainability.

Kumar, Madheswaran (2019) observed that Ombudsman is potentially a low-cost, time-effective

accountability institution and can substantially improve the quality of MGNREGA
implementation by plugging in leakages and suggesting improvements. It is low-hanging fruit
and the government could easily inject life into this institution. From perusing the records and a
cursory review of the literature, the authors have not so far come across any published academic
research or systematic evaluation of the functioning of the MGNREGA ombudsman in
Karnataka or anywhere in India; hence, this rapid study tries to assess the practice of ombudsman
in Karnataka to explore its effectiveness in grievance redressal and reduction of corruption and
enhancing the transparency and accountability in MGNREGA implementation.

Madheswaran, Kumar (2019) The paper mainly addresses the question of whether a competent,
capable, and independent SAU (Social Audit Unit) existed in Karnataka with adequate human
capacity building and financial resources and capacities capable to fulfill the aspirations of an
effective social audit using primary and secondary data. Results show that social audit in
MGNREGA, identified as a potential tool, has not been put to use by the authorities. SAU and
their team have put their heart and soul and brought out meaningful reports with very pertinent
and critical findings of misappropriation, financial deviation, or non-compliance with important
statutory and non-negotiable features of the scheme, but they have not been acted upon. The state
has remained a silent spectator to the operation of ‘Shadow State’ and consequent leakages and
program distortion. In the absence of credible enforcement and follow-up mechanism, and lack
of exercise of ‘will’ of the establishment, the vast repertoire of pertinent findings of the social
audit has remained decorative festoons hanging on the MGNREGA web portal. This potentially
versatile tool, capable of being a panacea, has remained a placebo. The policy implications and
suggestions are highlighted for improving the efficacy of the program.

Nabi (2019) examined that Given the reverses the Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA) suffered in 2014–15, it seemed likely that the program may be shut
down. However, following vehement protests both within and outside Parliament, the
Government of India decided to finally throw its full weight behind the program. Nevertheless,
should not development economists address the critiques against the program and assess whether
it is worth spending such large sums of money on it every year? This paper responds to the
various facets of the critique against MGNREGA. In the very nature of our response to the
critique lies a vision for the program going ahead. Our response can be sustained only based on
that vision. The paper provides a detailed explanation of why we reject the fundamental critiques
of MGNREGA. At the same time, we accept many of the internal critiques as extremely
important. The MGNREGA may be described as “both a major success and a huge failure”. But
it would be wrong, therefore, to throw the baby out with the bathwater. Rather, the key is to learn
from the successes of MGNREGA through a careful analysis of the conditions that have made
these successes possible. The paper ends with an outline of the unfinished agenda for
MGNREGA reform, without which its true potential will continue to remain unfulfilled.

Varghese (2019) examined that transparency, accountability, and participation (TAP) are some
essential elements for ensuring democratic governance. Social audit is an operational instrument
to reduce corruption by empowering people to scrutinize public expenses, detect corruption, and
ensure accountability. Social audit is one of the robust elements of MGNREGS (Mahatma
Gandhi National Rural Employment Guarantee Scheme) in India as they work through the
Panchayat, and stimulate the public to participate with a sense of communal accountability. At
the state level even five years after the issue of operational guidelines, we witness wide
variations in the quality of social audits. Different states have adopted their own models and
while some of them are successful, some of the states have still not set up and some are in the
process of setting up an independent social audit unit. The Non-Governmental Organization
(NGO) model of social audit in the state of Sikkim which is not widely discussed in the literature
is the focus of the study. This research attempts to study the efficacy of Social audit as a tool to
bring Transparency, Accountability, and Participation in MGNREGA taking the case of Sikkim.

Afridi, Dhillon (2020) analyzed that in the case of top-down audits the efficacy of audits depends
on the type of punishment- electoral punishment vs legal punishment, the literature finds that
electoral punishment is less effective than legal punishment. Moreover, electoral punishment
depends on whether voters are aware of audit reports. The type of service being audited - the
opportunity for corruption and the clarity of rules and regulations affect the success of audits.
However, even when top-down audits succeed in cutting down corruption, they may not always
lead to better outcomes. Social audits are effective when collective action problems are less
salient e.g. when groups are homogeneous when the design is such that community participants
feel empowered e.g. through elections to the monitoring committee, information is not useful by
itself unless accompanied by tools to influence outcomes, and finally, there is not a clear map
between finding corruption and improving ultimate outcomes. We suggest that a fertile area for
future research is the design of optimal audit schemes that take account of the opportunities for
corruption and the motivations of both the providers and the auditors.

Chawla (2020) examined that despite entrenched hegemonic micro forces and public sector
corruption, SA's accounting and accountability practices have altered the rules of the game in
this field. This emancipatory perspective has redefined deep-seated, generational patterns of
power relations and domination, impacting the distribution of capitals and habitus in the daily
life of rural citizens.
Dhaktode (2020) analyzed a research study conducted in the Buldhana and the Aurangabad
districts of Maharashtra. It is built on secondary data collected by using various tools such as
in-depth interviews, and participatory observation through the social audit processes. The key
findings of the study show that the tool of the social audit found out how laborers who
committed suicide due to delayed payment got justice. Similarly, social audits conducted in the
above-mentioned districts not only helped to access justice to the victim laborers and their
families but also contributed to their empowerment processes.

Dey (2020) Analysed that The Mahatma National Rural Employment Guarantee Act, 2005
(MGNREGA, 2005) has pointed out one of such remarkable public policies that ensure to
provides minimum manual work opportunities for the unskilled laborers, which is precisely cited
for eradicating the socio-economic status of poor rural people in India whereas, this Act has
substantially categorized as a ‘Right to Work’ based public policy. Because, it has been believed
that the objectivity of MGNREGA, 2005 has provided a minimum one hundred days work
guarantee which is to enhance livelihood security and brought socio-economic equality among
the target population. In this due course, MGNREGA has been significantly influenced by the
Panchayati Raj Institution mechanism to the engagement of rural citizens with government
machinery, assessment of rural development, social audits, planning of regular basis rendezvous,
and so on. It has been also impacted directly or indirectly by the Panchayati Raj Institution of
policy implementation through its decentralizing planning and monitoring system. Thought
execution of this Act has been demonstrated throughout the process of decentralization and
strengthening the capacity building in rural India. Whether Is the MGNREGA, 2005 eradicated
the inequality among the target population in terms of socio-economic status of Unskilled
laborers, living standards, and distribution of work security? The paper discussed the various
prospects of ‘Right to Work’ based public policy in India. The major objectives of this paper are
the assessment of the various factors of ‘Right to Work’ based public policy and its execution
across the jurisdiction of Local Self-Government in India. The paper also analyzed the
tremendous impacts on the Local Self-Government during the process of decentralizing planning
and monitoring process by the Central Government and the concerned State Governments.
Kadekodi, Hanaodinath (2020) analyzed that Sustainable development depends on the complex
set of interactions between the natural environment, the society we live, and economic
conditions. The relationship between humans and the environment is like 'one will give and the
other will take, during which equilibrium may get distracted. Economics leverages the growth
potential of society and society is influenced by the natural environment. To maintain the
equilibrium between these three pillars of sustainable development there is a need to link them.
Transparency during the execution of large-scale projects plays a pivotal role in achieving
sustainable development and enables the balance between the environment, society, and
economy. In recent times, the governments of many countries have adopted programs for
improving living standards, food security, and improved nutrition, health, clean water and
sanitation, education, and other aspects of sustainable development goals. This article reports the
transparency methods that are implemented for the MGNREGA project and articulates the role
of transparency in linking the three dimensions of sustainable development: environment,
society, and economics. The paper emphasized that the mechanism of transparency should reside
on all sides of the triangle of sustainability.
Malla (2020) analyzed the coverage and labor market outcomes of the Mahatma Gandhi National
Rural Employment Guarantee Act (MGNREGA) in Kashmir. It is based on a cross-sectional
mixed-method study of 200 households, 40 bureaucrats, and local political representatives
conducted in Kupwara, one of the poorest districts of Jammu & Kashmir. The article argues that
MGNREGA is poorly implemented and is not functioning as a guaranteed safety net for poor
households that suffer from job scarcity. Considerable benefits are directed towards the non-
poor, while several poor and deserving households are excluded. This bias is a result of rationing
in local distribution by middlemen in collusion with bureaucrats to further their political and
economic interests. In addition, the administration’s orientation towards MGNREGA as a
development policy instead of social protection, a supply shortage in the provision of
MGNREGA work, and administrative delays in project operationalization are some of the key
bottlenecks. The article contends that the policy has enormous scope and potential to achieve its
anticipated objective of acting as livelihood protection for job-scarce workers in rural Kashmir if
it is implemented as a social protection policy following its provisions in its true spirit.
Mohapatra, Suna (2020) examined the impact of MGNREGA (Mahatma Gandhi National Rural
Employment Guarantee Act) on the socio-economic status of MGNREGA beneficiaries in the
Kalahandi district of Odisha, India by using both primary and secondary data. Secondary data are
collected from the official website of MGNREGA during the period from 2012-2013 to 2018-
2019. Primary data was collected through a semistructured questionnaire from two blocks of the
district, namely Golamunda and Narla with a total sample size of 300 households. In selecting
the sample households, proportionate sampling along with a simple random sampling technique
has been used. For analysis of the study, a five-point Likert scale has been used to measure the
perception of sample respondents on the improvement of socio-economic conditions after the
implementation of MGNREGA. Besides, a composite index has been used to capture the
combined perceptions of all the sample respondents. The study found that less than 10 % of the
target household got employment for 100 days during the study period. Besides, the result of a
composite index (0,16) regarding the perception of MGNREGA beneficiaries on different socio-
economic parameters gives an impression that MGNREGA is less effective in the improvement
of the socio-economic status of the beneficiaries. Thus, it can be concluded that the MGNREGA
has not been effective in improving the socio-economic status of MGNREGA beneficiaries in
the Kalahandi district of Odisha.

Parthasarathy, Mani (2020) Accountability initiatives around the world are largely centered on a
linear equation between access to information and transparency. However, the reality on the
ground is rather un-linear as the effectiveness of initiatives often depends on the (in)formal
power asymmetries they are co-opted by. Tired of persistent corruption at the helm of
implementing agencies and elected representatives, one informal collective in Muzzafarpur,
Bihar - Samaj Parivartan Shakti Sangathan, decided to operationalize accountability in the
Mahatma Gandhi National Rural Employment Guarantee Act through an understanding of power
asymmetries. Through extensive fieldwork, this study critically examines the impact of their
operationalization on MGNREGA and power relations. It concludes that their approach is
successful in enhancing program implementation and generating sustainable accountability
mechanisms.
Tripathi, Kumari (2020) examined that a major chunk of rural people lives on agriculture and
other allied activities viz animal husbandry, dairying and fisheries, etc. Rural development
constitutes a lot of big data related to rural employment which has driven this study to address a
research question what is the application of big data in rural development with special reference
to the world’s largest public works and wage employment-generating poverty alleviation
program – Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)? The
concepts of MGNREGA are novel and innovative though the program continues to suffer from
various rigidities depicted in the data. This drives us to the objectives of our research. The
objective of the study is to explore literature and big data on rural development with special
reference to MGNREGA, explore the upcoming challenges in rural employment with special
reference to MGNREGA, identify gaps in the existing literature and pave future research
direction. The study paves various ways for future research directions for academicians,
researchers, and policymakers.
Ahmad, Manzoor (2021) examined that the landmark enactment of MGNREGA legislation in
the year 2005 was aimed at a new dawn in poverty alleviation and rural self-employment in
India, with prerogatives of rural employment and sustainable development. The Success of the
program is dependent on various parameters like participation, demand, accountability,
implementation, fiscal health, and usage of ICT as a tool of facilitation. The contemporary trends
in development programs demand the extensive usage of ICT tools for the dissemination of
information, planning, execution, and monitoring of programs to cultivate transparency and
accountability. Knowing that ICT is an inseparable part of MGNREGA, still, the tools of ICT are
either absent or not being used effectively. Thus, it becomes imperative to study the essence of
ICT tools about MGNREGA. The present study thus aims to assess ICT through the usage in
various aspects of the MGNREGA scheme in districts Kupwara and Poonch of J&K.

Dhaktode (2021) The study examines key issues that occur in the implementation of public
policy and the role of social audits to curb those. Corruption is one of the serious issues in South
Asia, especially in India. It has become an everyday culture and quite normal to discuss
corruption in India. In absence of social accountability and the sole emphasis on traditional
vertical accountability, it observed a significant negative effect on the implementation of the
social welfare programs. The rising concepts of ‘transparency and accountability’ are playing a
vital role to achieve good governance, empowering the citizens, and justice in the new public
management system. The tool of the social audit has emerged as a hope for democratic
accountability that provides a platform for people, especially the marginalized ones, to raise their
grievances fearlessly. The key objective of the research is to examine the institutionalization
process and its contribution to ensuring transparency and accountability in the implementation
of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Key findings
of the research suggest that United Andhra Pradesh was the first state who come up with the
institutionalized social audit to sustain its process. The state had an interesting journey that
achieved the full-flagged institutionalized social audit process. The institutionalization of social
audit in the state has proven its effective outputs to make the system more accountable for its
duties which brought a positive impact on the quality implementation of the Mahatma Gandhi
National Rural Employment Guarantee Act (MGNREGA) as a social policy.

2.1 RESEARCH GAP

Based on the available literature reviewed, it has been found that the majority of the research
conducted on MGNREGA focussed only on employment generation, and development works.
Instead, it has always been of less focus by the researchers to all that on the ground level about
awareness of people about MGNREGA. Its importance has not been made public so that people
own this initiative to their benefit. It will surely be more effective in a social auditing process
that which people themselves upfront have first-hand information about the program, its
implementation, and the relevant rights people carry towards it, and it has been sidelined by
scholars. Surveys are not being conducted regularly and the government doesn’t involve
volunteer groups to help in the social auditing of such programs. Moreover, no systematic study
has been conducted on the Social Audit of MGNREGA in the UT of Jammu and Kashmir
specifically in the district of Badgam.

2.2 RELEVANCE OF THE STUDY

The study aims to explore the various aspects related to the Social Audit of MGNREGA. Social
Audit is a good mechanism for ensuring transparency and accountability, promoting people’s
participation, and strengthening decentralized governance. Most of the people of district
Badgam are living in rural areas and are dependent on agricultural activities which do not
provide them with more employment and developmental opportunities, leading to a rapid rise in
unemployment, and underdevelopment. As per the records of govt, Till 2019 work done liability
was Rs 2674.54 lacs, against which FTOs have been generated for Rs 2469.24 lacs only. The
Generation of man-days in the district is not up to the mark despite having a scope of generating
more man-days. No systematic research study was not carried out on the social audit of
MGNREGA. To deal with the above-mentioned problems, the district Badgam must have to
apply the provisions of the MGNREGA act which includes one of the most important provisions
called a social audit. With the proper application of social audit, there will be less corruption,
more development and most probably marginalized sections of the society will get benefitted.
MGNREGA was launched in India to solve these problems and this research will be helpful for
the efficient use of a social audit that can solve these problems in district Badgam with
effectiveness.

2.3 OBJECTIVES OF THE STUDY

1. To discern the meaning and academic evolution of the concept of social audit.
2. To elaborate on the processes and practices involved in the social auditing task of
MGNREGA.
3. To point out the origin and implementation of the social auditing process as part of
MGNREGA.
4. To assess the awareness level of Panchayat Members and Gram Sabha members about
the Social Audit of MGNREGA in district Badgam of Jammu and Kashmir.
5. To find out the hurdles in the effective implementation of Social Audit in MGNREGA in
district Badgam of Jammu and Kashmir.

2.4 RESEARCH QUESTIONS

The questions of the research study aimed to answer the following questions:
1. RQ1: How effective is social audit in MGNREGA in district Budgam of J&K?
2. RQ2: How best practices of social audit in MGNREGA can be promoted in district Badgam
of Jammu and Kashmir?
3. RQ3: Do citizens participate in social audits in MGNREGA in district Badgam?
4. RQ4: Are Panchayat Members and Gram Sabha members well aware of the Social Audit of
MGNREGA?
5. RQ5: What are the major issues and challenges of the Social Audit in MGNREGA in district
Badgam of Jammu and Kashmir?

2.5 RESEARCH METHODOLOGY

Research methodology is a systematic way of using specific procedures or techniques to

carry out the research. In the research methodology, we will discuss the tools and techniques
that will be used to achieve the objectives of the research.

2.6 RESEARCH DESIGN

The study will be exploratory and analytical in nature so qualitative and quantitative
research methods will be used. In this research individual topics like timely completion of
works, budget allocation for rural development programs, job cards, and payment of wages
will be researched and analyzed together in the context of the social audit framework,
especially in the district Badgam of Jammu and Kashmir.

2.7 GEOGRAPHICAL AREA SELECTED FOR RESEARCH

District Badgam of Jammu and Kashmir is selected for the research because in the district most
of the population are living in rural areas and are engaged in the agriculture sector. In district
Badgam there is no timely completion of work in MGNREGA. As per the report of the Ministry
of Rural Development, it has been notified that in district Badgam in the financial year 2022-23,
1306 no. of works have been started under MGNREGA and out of which none of the work is yet
completed which results in the delay of work and lack of supervision by the concerned
authorities.

TABLE 2.2 Area and Sex-wise Population in District Badgam

 Particulars Male Female Total Population Population %
Rural 3,43,385 3,12,448 6,55,833 87.01%
Urban 54656 43256 97912 12.99%
Total 3,98,041 3,55,704 7,53,745 100%
Source: Census 2011

TABLE 2.1 Work Completion Rate In MGNREGA for the financial year 2022-23
No of the works No of the works Not yet completed Work completion rate
started completed
1306 0 1306 0

Source: Ministry of Rural Development

2.8 SAMPLING FRAME

According to the census of 2011, the district had a population of 753745 (Seven lakh fifty-
three thousand seven hundred forty-five) people with 87.01% of them living in rural areas of
the district. District Badgam consists of 17 blocks and 296 panchayats. Out of the 17 blocks,
10 blocks will be selected based on simple random sampling for this particular study.
To know about the response, a sample of 400 respondants will be selected from the 10
blocks based on random sampling. These respondants will be Gram sabha members, the
Social Audit committee, and Gram Panchayat members of district Badgam for better
understanding and authenticity. Gram Sabha members are taken as respondants because the
 social audit committee is supposed to submit a social audit report to Gram Sabha. To check
if there is any kind of formalism, gram sabha members are selected based on random
sampling so that we can know the awareness level of the people and on the other hand level
of formalism. Out of these 400 respondants, 250 respondants will be from gram sabha, 75
respondants will be from the social audit committee and 75 respondants will be from the
gram panchayat members. To know the responses of the public officials, another sample of
30 officials from the respective departments of district Badgam like BDOs, District
coordinating officers, and District panchayat officers will be selected based on the snowball
sampling.

2.9 DATA COLLECTION

In the research, the data collection sources will be exploratory and analytical facts related to the
Social Audit of MGNREGA in district Badgam. The data collection sources will be further
divided into two sources i.e Primary sources and Secondary sources. Mostly, the primary source
of data collection will be done through a Structured Interview Schedule of 400 respondants and
In-Depth Interviews for 30 officials from the district, Badgam will be administered comprising
both open and close-ended questions relating to the implementation process of Social audit,
awareness of gram sabha members, timely completion of works, budget allocation for the rural
development programs. Secondary sources of data collection will include- books, journals,
research papers, relevant data from govt policy documents, authentic internet websites, and
other published and unpublished documents. Analysis of data will be done based on graphs,
charts, percentages, and other tools, with the help of MS-Excel.
 3. SOCIAL AUDIT AT THE NATIONAL AND INTERNATIONAL LEVEL

Social Audit

A Social audit is the assessment and examination of the program or scheme to compare the
official results with the actual ground realities with the involvement of the people who are
working under the program or have done previous work. The Social audit ensures transparency,
accountability, people's participation, social transformation, consultation and consent, and
redressal mechanism for grievances which enables the local bodies to move towards good
governance. A Mandatory social audit is to be held at least once every six months in a gram
sabha meeting where beneficiaries can seek and obtain information critically evaluate the scheme
and compare actual ground realities with the official records.

Objectives of social audit

1. Assessing the physical and financial gaps available for local development.
The social audit process involves transparency, communication of information, and social
engagement and makes representatives, policymakers, managers, and concerned officials
more and more accountable for their decisions, and scrutinizes the actual usage of funds
whether the funds are used for a specific purpose or misappropriated. Thus, the
application of social audit holds tremendous potential in bridging gaps between policy
objectives and outcomes.

2. Creating awareness among the beneficiaries about the provisions of the scheme.
A Social audit helps the beneficiaries to become aware of all legal entitlements and
provisions under the act. improve their participation, so that they get all the benefits of
the scheme which will improve their quality of life and make the scheme successful.
 3. Increasing efficiency and effectiveness of local development programs
A Social audit helps in increasing the efficiency and effectiveness of local development
programs by bringing the concerned officials accountable for their work and actions.
With this provision, they will work with dedication and make optimum use of available
resources which will ultimately increase the effectiveness of local development
programs.

4. Scrutinize the decisions of policymakers keeping in view the interest of rural people.
Social audits scrutinize the decisions of policymakers in such a way that the decisions
that are being taken by the policymakers are beneficial for the rural people or not with the
active involvement of the beneficiaries of the scheme. If it is proved that the decisions are
beneficial for the rural people these decisions will be implemented at the ground level
and if the decisions are against the benefit of the rural people these decisions will be not
implemented at the ground level.

Need for Social Audit

1. It reduces corruption and nepotism in administration at the planning as well as at the

execution level.
2. It eliminates the concept of formalism.
3. It enhances accountability and transparency.
4. It strengthens the Gram sabha through the participation of local people.
5. It is a collective platform.
6. It contains a monitoring and feedback mechanism.
3.1 INDIA’S PERSPECTIVE

In India, Tata Iron and Steel Company (TISCO) became the first company to institute a social
audit in 1979 and the members of the social audit committee of this company comprises external
members, renowned and independent individuals which was one of the remarkable features of
TISCO social audit and after that in the govt sector, the social audit began with the Right to
Information movement organized by Mazdoor Kissan Shakti Sangathan (MKSS) in the year
1990 in Rajasthan. This movement was laid by the demand of the women workers which was
minimum wages to be paid to women workers but the Engineers of the PWD department claimed
that they have not worked. Then the workers demanded to see the official records but they were
refused on the ground of the official secrets act 1923. Then these workers made a union Mazdoor
Kisan Shakti Sangathan to get the right to know the record of the works. During the first phase of
the agitation by this movement, the Govt of Rajasthan passed an order that the workers are
allowed to inspect the records, while inspecting the records MKSS found that malpractices are
there which are creating a lot of hurdles in the effective implementation of the provisions of the
scheme. To provide such inspected records to the illiterate workers of the scheme Jan Sunwaii
was organized which was a remarkable step in the history of social audit in India. In the UT of
Jammu and Kashmir, MGNREGA was extended to three backward districts in the initial phase in
2006 (Doda, Kupwara, and Poonch) which was later extended to Jammu and Anantnag districts
during the second phase, and in the third phase, it was extended to whole Jammu and Kashmir in
2008-09.

Advantages of Social Audit

1. Ensures people’s participation.

2. Strengthens Local democracy.
3. Benefits disadvantaged sections of society.
4. Trains the community to participate in local planning.
5. Promotes collective decision-making.

To be effective, the social auditor must have the right to:

1. To investigate the decisions which are implemented by the implementing agencies and
get clarifications of the same
2. To scrutinize the existing schemes and the activities of the agency.
3. To get access to the registers, and documents relating to the developmental activities
undertaken by implementing agency.

Appropriate institutional level for social audit

The most appropriate institutional level for social audit is the Gram Sabha, which has been
given ‘watchdog’ powers and responsibilities by the Panchayati Raj Acts in most States to
supervise and monitor the functioning of panchayat elected representatives and government
functionaries/, and examine the annual statement of accounts and audit reports. These are
implied powers indirectly empowering Gram Sabhas to carry out social audits in addition to
other functions. Members of the Gram Sabha, the village panchayat, intermediate panchayat,
and district panchayat through their representatives, can raise issues of social concern and
public interest and demand an explanation.

Right to information for members of Gram Sabha

Some states have already passed the Right to Information Acts. Notwithstanding some
weaknesses, the Acts have opened the way for transparency in administration from the State
to the panchayat level. The Right to Information Act specify the modalities for obtaining
information and provide penalties for failing to furnish or supply false information. The Acts
facilitate social legislation such as minimum wages and gender rights and, more importantly,
pave the way for public debate on government development projects. However, none of the
Acts have defined the right to information to include inspection of works and documents/,
and the taking of notes and extracts. This is needed to make the social audit by Gram Sabha
more effective.

The Gram Sabha should have the mandate to/: inspect all public documents related to budget
allocations, list of beneficiaries, assistance under each scheme, muster rolls, bills, vouchers,
accounts, etc., for scrutiny; examine annual statements of accounts and audit reports; discuss
the report on the local administration of the preceding year; review local development for the
year or any new activity program; establish accountability of functionaries found guilty of
violating established norms/rules; suggest measures for promoting transparency in
identifying, planning, implementing, monitoring and evaluating relevant local development
programs; and ensure opportunity for rural poor to voice their concerns while participating in
social audit meetings. (Mandeep 2016).

Social audit committees

Social audit committees are also used for auditing the performance of the Panchayat raj
institutions at all levels. These committees are not permanent but can be set up depending
upon the nature of the programs/schemes to be audited.

Social audit committee members are drawn from the program stakeholders. Services of
retired functionaries of different organizations, teachers, or eminent persons with integrity
living in the Gram Panchayat, Block Panchayat, Zila Panchayat jurisdiction. Social audit
committee members are trained by social audit experts.

Steps in social audit in local bodies

1. The Clarity in the goal of the elected local body.

2. Marginalized sections of society should have a say on local development issues and
activities.
3. Review regular meetings and discussions on developmental issues.
4. Follow-up of recommendations made by the stakeholders.
5. Establishment of a group of people with whom people have trust including elderly
people, teachers, etc to verify the decisions are implemented at the ground level.
6. The findings of the social audit should be shared with all stakeholders and the report
should be distributed for gram panchayat auditing.
 Social development monitoring (SDM): a social audit process

SDM is an observation activity done by socially backward groups who are the target
beneficiaries. It could take action to enhance people’s participation, inclusiveness, transparency,
and accountability by the implementing agencies with the purpose of making an impact on their
socio-economic status.

3.2 73rd AMENDMENT ACT 1992

73rd amendment act 1992, provided great importance to social audits through which the village
communities were empowered to conduct social audits of all development works in villages, and
the officials were bound to facilitate such communities in every respect. Section 17 of the
MGNREGA Act makes it mandatory that all such works which are to be executed under such a
scheme should be audited.

 Gram sabha shall conduct regular social audits of all the projects within gram panchayat
under the MGNREGA scheme.

 Gram panchayat shall make all documents such as bills, vouchers, sanction orders, etc
available to the gram sabha for conducting the social audit.

MGNREGA amendment act 2008, also provides some rules regarding social audit such as –

 Social audit shall be held at least once every six months.

 Social audit announcement shall be made in advance in 30 days at least by the district
program officer.
 Social audit committee will be elected by the gram sabha itself within the Gram panchayat
and the committee members should have worked in current or previous works under
MGNREGA.

 There should not be less than 1/3rd of women members in the committee.

 The program officer shall ensure that all relevant documents shall be available for inspection.

 The Gram Panchayat shall present all documents and information at least 15 days in advance
to the social audit committee.

 Social audit committee will verify all documents and information.

 The program officer shall notify in writing all the public representatives and the staff in
advance and are present in the social audit.

 Social audit committee shall read out its findings publicly in the Gram sabha and people shall
be allowed to seek and obtain information.

 At the beginning of the social audit, the action taken report of the previous social audit should
be taken into consideration.

The minutes shall be recorded by the secretary and signed by all participants before and after
the completion of the social audit.
3.4 WORLD PERSPECTIVE

The concept of Social Audit was first used in 1972 by Charles Medawar, a British specialist in
medical policy and drug safety. Decision makers should account for the use of their powers.
These powers must be exercised with the consent and understanding of the citizens. (Romero
2010).

In the 1970’s private corporations throughout the British commonwealth, in several European
Countries and the United States made use of Social Audit which was the demand of the
consumers and environmental movements. In response to the new democratic governance trends
in the 1980’s, the concept of social audit traveled from the private to the public sector.

TABLE 3.1 Social Audit In International Countries.

Year of Incorporation of Country Focus and Study Area

Social Audit
1985 Sweden Comparing the working
experiences of the employees
and the management of the
organization.
1991 Mexico Citizen attention system,
oversight committees, citizen
participation in public-private
councils.
1996 South - Korea People’s participation in BAI
(Board of Audit and
inspection), promotes
people’s confidence.
2001 Pakistan It provides a baseline, a
benchmark for measuring
change under devolution.
2013 South – Africa Communal chemical toilets in
the large township of
Khayelitsha in Cape Town.

4. Social Audit of MGNREGA at Jammu and Kashmir

The union territory of Jammu and Kashmir is one of the largest UTs of India. Jammu and
Kashmir presently comprise two divisions namely, Jammu and Kashmir, and has 20
districts. According to the 2011 census, the population of UT is 125 lakhs including the
union territory of Ladakh. Out of the population of 125 lakhs, 91.35 lakhs live in rural
areas and 34.14 lakhs live in urban areas as compared to all India levels which is 833.1 in
rural areas and 377.1 in urban areas (Economic Survey 2013). The UT of Jammu and
Kashmir is predominantly agrarian UT with nearly 75% of the population residing in the
rural areas and is directly or indirectly linked to the agriculture sector for the security of
their livelihood. More than 70% population in JandK are living in rural areas, out of
which 26.14 % are below the poverty line, which means that out of every four persons,
one belongs to the BPL category. Thus, to reduce the poverty of JandK in rural areas and
increase their purchasing power, it was necessary to implement the social security
program which enhances the livelihood of the rural people i.e MGNREGA.
The MGNREGA was notified by the Ministry of Rural Development, Govt of India in
September 2005. This act enhanced livelihood security in rural areas by providing 100
days of wage employment to every household whose members are volunteers to do
unskilled manual work. Any rural household seeking manual work could register their
name in the gram panchayat and they will be provided with the job card. Due to special
status MGNREGA was not implemented in JandK at that time. The matter regarding
implementation of this act to the JandK was taken with the Government of India,
Ministry of Rural Development for the effective implementation of Mahatma Gandhi
National Rural Employment Act 2005 (MGNREGA). In February 2006, the act was
initially in three backward districts of Jammu and Kashmir, and the districts were:-
Poonch, Doda, and Kupwara under phase Ⅰ. Under phase Ⅱ, during 2007-08 two more
districts were brought under the ambit of this scheme and the districts were Jammu and
Anantnag. Under phase Ⅲ, with effect from 1st April 2008, the scheme has been
universalized in all the remaining districts of Jammu and Kashmir, which currently
consists of 20 districts.
4.1 Social Audit
Regarding Social Audit, the UT has initiated the preparatory work. Therefore, the
workers’ responses to the benefits of ‘Social Audits’ have to be interpreted cautiously.
The REGS envisages the provision of Social Audit and the Right to Information. Social
Audit is proposed at all three stages of the pre, during, and post implementation phases.
Non-implementation of the provision of ‘information wall’ at Panchayat Headquarters
with all the requisite information painted along with the names of the Programme Officer
as Public Information Officer and the Panchayat Secretary as Public Information Officer
at the village level shows the lack of commitment toward Social Audit and Right to
Information. However, at the field level, no Social Audit has taken place and no report
whatsoever is available. Besides, the Field Study indicates the lack of information with
the people regarding the legal provisions of the Act and the components of the REGS.

Regarding Social Audit, the State Coordinator (J&K REGS) confirms that the concept
has not been grounded well in the State and feels the need for a national intervention of
organizing Training of Trainers (ToTs) on Social Audit who in turn shall prepare a sound
ground for a genuine Social Audit of REGS. The National Institute of Rural
Development (NIRD) has already started conducting the TOTs on Community
Mobilisation, Social Audit, and Vigilance, and Monitoring. The mechanism that is being
followed is that the list of works with the relevant details is being discussed in the Village
Assembly (Gram Sabha). This is, however, a very fragile method with little initiative
from the public to ensure effective implementation of the projects under REGS.
4.2 Monitoring Arrangements

A complete mechanism of inspection of works executed under REGS has been proposed
compulsorily to be made by the officers to the extent mentioned below:

% of works to be

inspected (Quarterly)

i) Secretary, Rural Development Department

or the officers designated by him. 1%
ii) Director, Rural Development Department 2%
iii) Project Directors of DRDAs 10%
iv) District Project Coordinators 15%
v) Additional Project Coordinators 20%
vi) Programme Officers 100%

Monitoring of REGS activities was undertaken, according to the officials, through

frequent tours, inspections, and MIS. The Physical audit was undertaken, according to
the officials, through regular inspections as per the provisions envisaged in the J&K
REGS. Financial audits were undertaken through the Chartered Accountants and
Auditors. The Internal Auditors have reported that the position is satisfactory
although steps need to be taken in making the books of accounts updated and made
available on time.

Regarding transparency and accountability, the REGS clearly spells out the records to
be maintained by the Halqa Panchayat and other implementing agencies in terms of
the following:
Gram Panchayat Level

1. Application Registration Register.

2. Job Card Register
3. Employment Register
4. Asset Register
5. Muster Roll Receipt Register
6. Complaint Register

Programme Officer’s Level

1. Employment Register
2. Job Card Register
3. Muster Roll
4. Issue Register
5. Asset Register
6. Complaint Register

District Level

1. Relevant data of the works falling within the jurisdiction of more than one
Programme Officer
2. Preparation of Monthly & Annual Reports
3. Maintenance of Complaint Register
At each level, responsibilities are fixed for ensuring the day-to-day completion of
prescribed registers. Besides, Inspection Registers are to be maintained at all levels
so that the visiting officers record their observations. However, at the operational
level, these instruments need improvement in order to ensure transparency and
accountability. ( Alam, 2010).
SCOPE AND LIMITATIONS

The scope of the research is very wide as the study aims to explore various aspects of Social
Audit in MGNREGA. Under the MGNREGA scheme, employment opportunities are provided
to the rural households and various developmental works are taking place in the rural areas for
such works Social audit has been mandated to ensure transparency and accountability. The
research is limited to the Social Audit of MGNREGA in district Badgam. There may be a lack
of access to a huge collection of data for analysis and difficult to cover all aspects.

4. CHAPTERISATION- Tentative Chapter in Research Proposal

CHAPTER – 1 INTRODUCTION
CHAPTER – 2 REVIEW OF LITERATURE & RESEARCH
METHODOLOGY
CHAPTER – 3 SOCIAL AUDIT AT THE NATIONAL AND
 INTERNATIONAL LEVEL
CHAPTER – 4 SOCIAL AUDIT OF MGNREGA AT JAMMU AND
KASHMIR
CHAPTER – 5 IMPLEMENTATION OF SOCIAL AUDIT OF MGNREGA
IN DISTRICT BADGAM
CHAPTER -6 SUGGESTIONS AND CONCLUSIONS

GANTT CHART FOR THE PROPOSED WORK

YEAR / 2021 2022 2023 2024

MONTH
ACTIVITY
Aug Oct Jan April Sept Jan April July Oct Jan April June

Sept Dec March Aug Dec March June Sept Dec March May July

Identification
of research
title,
formulation of
research
strategy

Literature
review,
formulation of
research
objectives, and
research
design
Write research
proposal,
synopsis
submission,
SAS
presentation,
and poster
presentation
Data collection

Data Analysis

Obtaining
results and
drawing
conclusions
Writing draft
(1st, 2nd and
final), taking
feedback on
conclusion and
one research
paper
Writing
dissertation,
thesis
including
acknowledge,
index
Proofreading,
printing,
binding, and
final
submission

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