Union finance minister Nirmala Sitharaman on Tuesday defended the Centre’s decision to put on hold funds for Bengal under several central government schemes, saying the state is required to demonstrate transparency in implementing the programmes.

Sitharaman was responding to a discussion in the Rajya Sabha on supplementary budget provisions and the interim budget for Manipur.

Trinamool leaders criticised the Centre for holding up the release of funds to Bengal under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Pradhan Mantri Awas Yojna Grameen and the Samagra Shiksha Abhiyan.

On March 11, minister of state for rural development Kamlesh Paswan had told the Lok Sabha that funds under the MGNREGA had been stopped for Bengal since March 9, 2022 “as per provision of Section 27 of MGNREG Act, 2005, due to non-compliance of directives of the central government”.

Sitharaman on Tuesday said the state government had violated the guidelines of the schemes while selecting beneficiaries.

“On the question of Bengal funds not being released, the Comptroller and Auditor General (CAG) has pointed out how many inappropriate actions have happened. Many of the bogus ghost accounts have received money. The realisation had to happen from the ghost accounts. The state government chose to pay from their own state’s treasury,” the minister told the Rajya Sabha.

“First you give the money to non-existing individuals. When that has to be recovered as per the order of the CAG, you again give the taxpayers’ money. You have not recovered the money from people to whom it went and who were not deserving. They (the Bengal government) should follow the rules laid down and bring transparency,” Sitharaman said.