Patna, Feb. 14: Union minister for rural development Jairam Ramesh today criticised the Bihar government for poor spending of funds under MNREGA, the UPA regime’s pet scheme that guarantees rural employment.

Ramesh, who has earlier praised the Nitish Kumar administration for governance, said demands made by Bihar from the Centre regarding MNREGA funds was low compared to other states. He said that during the current financial year, the state had raised demands for only Rs 3,000 crore compared to Rs 8,000 crore of Andhra Pradesh.

“Even the chief minister has remarked that the funds under MNREGA were being diverted to buy SUVs for mukhiyas,” the minister said, stressing that social audit and audit carried out by the CAG on MNREGA was on.

Nitish has earlier promised a detailed probe into work done under MNREGA.

Ramesh’s criticism comes a day after Congress workers had met him and alleged irregularities in MNREGA funds allotted to Bihar and demanded a CBI probe. They had also expressed displeasure over Union ministers ignoring party workers during their visits to Bihar and praising the functioning of the Nitish government.

The government expressed surprise at Ramesh’s criticism.

“I was present at the review meeting and the Union minister did not express dissatisfaction over MNREGA. It is not the state government which spends money in MNREGA, but the gram panchayats. The capacity of gram panchayats to spend money is poor, especially with Bihar having weak banking and post office infrastructure. The central government sometimes stops MNREGA funds for the whole district when it finds irregularities in just one panchayat. Second, the MNREGA funds are released at the end of the financial year, not at the beginning. There was a strike of panchayat sewaks during which MNREGA expenditure was affected. The point is not expenditure. It is that the money is being looted. The chief minister has told the Union minister that physical verification of work under MNREGA is going on. After all what is the use of spending Rs 8,000 crore when Rs 6,000 crore gets looted?” said state rural development minister Nitish Mishra.

Ramesh met Nitish, his cabinet colleagues and officials at a meeting to discuss the caste survey that is currently under way. The chief minister presented the minister a Mithila painting and an image of Lord Buddha.

Ramesh said he would consider Nitish’s suggestion to increase the funds for Indira Awas houses for the poor in flood-hit areas.