Money has been used to buy calendars, tents, tables, chairs, plates and even toys in seven districts, he claims.
Mr Ramesh raised the issue with Chief Minister Mayawati in a letter which the BBC has seen. She has yet to respond.
But Mr Ramesh is calling for a police inquiry into the allegations.
Last month too, Mr Ramesh wrote a letter to Ms Mayawati pointing to what he said was the large-scale diversion of public money from the jobs scheme.
Ms Mayawati then wrote to Prime Minister Manmohan Singh saying Mr Ramesh’s letter was “politically motivated”.
Mr Ramesh says his letter is based on information presented by the independent State Quality Monitor which has pinpointed instances of deliberate and widespread misuse of funds.
Called the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), the five-year-old multi-billion dollar jobs scheme is one of the world’s biggest social welfare schemes.
It guarantees 100 days of work a year to every villager where they build local infrastructure like roads, ponds and community buildings.
‘Uttar Pradesh is India’s most populous state with 200 million people.
It is also home to a large number of poor with 56 million people earning less than $1 a day and 300,000 not even managing to get one square meal a day.