Unspent Billions: Gujarat's Construction Workers Welfare Cess Dilemma
The Gujarat government collected over Rs 4,700 crore in welfare cess from developers over 16 years, but only utilized Rs 808 crore for workers' welfare. The remaining funds lay in government accounts due to the non-constitution of a proper welfare board and fund, as flagged by a CAG report.
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- India
In a striking revelation, the Gujarat government has been found to have collected a massive welfare cess of over Rs 4,700 crore from developers over a period of 16 years, but managed to utilize only a meager Rs 808 crore for the benefit of workers. This significant oversight was highlighted in a Comptroller and Auditor General of India (CAG) audit report tabled in the legislative assembly.
The audit report noted the lack of a fully constituted welfare board mandated by the Building and Other Construction Workers (BOCW) Act of 1996, resulting in a major portion of the collected cess being left unspent. Instead of being directed towards workers' welfare, the funds were deposited into a government account.
The report also pointed out several compliance deficiencies at construction sites, ranging from the absence of safety measures to the lack of temporary housing. Recommendations emphasized the need to constitute a proper welfare board and fund, ensuring that the benefits truly reach the intended beneficiaries.
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