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LATEST NEWS UPDATES | Ahead of polls, govt raises allocation for rural development

Ahead of polls, govt raises allocation for rural development

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published Published on Apr 15, 2013   modified Modified on Apr 15, 2013
-Deccan Herald


With just a little more than a year left before the nation goes to polls, the Congress-led United Progressive Alliance Government has proposed to raise the allocation for rural development to Rs 80194 crore in 2013-14, although an amount of about Rs 21371 crore is estimated to be left unspent from the fund earmarked for the sector this year.

The Ministry of Rural Development is likely to leave unutilized about 28 per cent of the total allocation of Rs 76423.02 crore earmarked for it in 2012-13. But, notwithstanding under-utilization of fund, Finance Minister P Chidambaram on Thursday raised the allocation for the MoRD in 2013-14 by 46 per cent over its revised estimate of Rs 55052.03 crore for the current year - ostensibly to avoid sending out a negative message to rural electorate ahead of the next year's Lok Sabha polls.

Rural Development Minister, Jairam Ramesh, attributed under-utilization of the budgetary allocation for his ministry to "serious administrative weaknesses" of the State Governments, particularly the Governments of the poorest and underdeveloped States like Bihar, Jharkhand and Odisha. He also said that while the State Governments had failed to "absorb and spend the money on time", the Union Government's "complicated financial procedures" too contributed to under-utilization of the fund allocated to the MoRD in 2012-13.

Even the Mahatma Gandhi National Rural Employment Guarantee Programme - the flagship scheme of the UPA Government - is unlikely to use up the entire sum of Rs 33000 crore allocated for it in 2012-13. Though Rs 29387 crore is estimated to be spent for the programme during the current fiscal year, Finance Minister in his Budget 2013-14 retained the allocation at 2012-13 level.

"This (MGNREGS) is a demand-driven programme and, according to the Mahatma Gandhi National Rural Employment Guarantee Act, the Government must provide employment to each and every poor villager who would place a demand for it," said Ramesh. While adequate rainfall might bring down the demand for job in certain parts of the country; drought or similar extreme weather conditions might result in a spurt in demand, he said, adding that other reasons like delay in payment of wages as well as administrative weaknesses of the State Governments might also contribute to poor implementation of the scheme.

Ramesh on Thursday wrote to Chief Ministers of all the States to inform them that the MoRD was keen to change the procedure for releasing fund to the States for the Indira Awas Yojana to avoid delay and under-utilization of the allocation. He said that similar steps would also be taken to ensure utilization of the funds allocated for other schemes too.

Chidambaram on Thursday allocated Rs 15184 crore for the Indira Awas Yojana and Rs 21700 crore for Pradhan Mantri Gram Sadak Yojana in 2013-14. He said that Andhra Pradesh, Haryana, Karnataka, Maharashtra, Punjab and Rajasthan might enter into the second phase of the PMGSY as they had already substantially achieved the objectives of the first phase of the scheme.

Ramesh said that while the PMGSY-I was aimed at building rural roads and establish connectivity, the PMGSY-II would emphasize on upgrading the roads. While Rs 16000 crore would be allocated for PMGSY-I, Rs 5700 crore would be earmarked for the second phase of the scheme, he added.

The Government had in 2012-13 allocated approximately Rs 24000 crore for the PMGSY, but the MoRD could spend only about Rs 10000 crore, said the Rural Development Minister.


Deccan Herald, 14 April, 2013, http://www.deccanherald.com/content/325776/ahead-polls-govt-raises-allocation.html


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