Rising admin costs: Kerala plans staff cuts under National Rural Employment Scheme

Alappuzha: The Kerala state is reportedly planning to reduce the number of operational staff in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). Staff reductions are targeted in panchayats where administrative expenses exceed five percent of the scheme’s total expenditure. Accountants and IT assistants, many of whom have contracts exceeding 10 years, are the most concerned.

The state mission has recommended reducing staff in panchayats where administrative costs are above five percent. If retained, salaries and benefits must be paid by local bodies from their own funds. Due to financial difficulties, many local bodies are unwilling to sustain these employees.

Typically, four to six officials manage the employment guarantee scheme: Assistant engineers (AE), overseers, accountants and IT assistants. Most panchayats have only one AE and one overseer each. However, there can be up to three accountants, making their positions the most vulnerable to cuts.

The Central Government has been gradually reducing the number of workdays funded under the employment scheme each year. As a result, scheme expenses have sharply declined in most panchayats, though administrative costs continue at previous levels.