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LATEST NEWS UPDATES | Bigger rural outlay to power growth: FM

Bigger rural outlay to power growth: FM

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published Published on Feb 3, 2016   modified Modified on Feb 3, 2016
-The Hindu Business Line

10 years on, MGNREGA to get more funds
 
New Delhi: Barelythree weeks ahead of Budget 2016-17, Finance Minister Arun Jaitley indicated that the government could increase budgetary allocations for rural and social schemes like the Mahatma Gandhi National Rural Employment Guarantee Act.

The allocation may be even higher than the 35,000 crore allocated in 2015-16.

“Oneengine to grow further, despite the global slowdown that has also impacted our exports, can be by improving the rural economy. The Centre and State governments can do this through a rural push by measures such as rural electrification, roads and irrigation,” Jaitley said on Tuesdayat the MGNREGA Sammelan to mark 10 years of the scheme.

‘No spending cuts’

Healso stressed that the Centre would not resort to expenditure cuts to meet the fiscal deficit targets as it affected overall economic growth. “In the recent past, there was hardly any year when a major portion of the Budget estimate for expenditure was not cut; especially in the months of November and December… growth rate was also impacted. But thiswill be the first year when allocation to developmental works will not be cut and more than the Budget estimate will be spent,” he stressed.

Congress attack

TheCongress party, which claims the rural employment scheme as its flagship programme, had taken a dig at Prime Minister Narendra Modi, stating that he had come around from a position of criticising the scheme to celebrating it. Congress chief spokesperson Randeep Singh Surjewala said “Unfortunately, his (Modi’s) actions of neglect speak louder than his words…the scheme has languished under the current government.”

While allaying concerns that the scheme may be scrapped, Jaitley, however, noted that schemes cannot be cast in stone and need to be reviewed. “When a government scheme runs for many years, an attitude of indifference develops towards it. A kind of indifference towards it was growing by 2013-14, when the scheme had entered its seventh and eighth years,” he said.

Jaitley noted that two consecutive years of bad monsoon had affected farm sector productivity and demand. He said the government needs to introduce as many such measures as possible to not help the people in these areas andalso boostthe economy.


The Hindu Business Line, 3 February, 2016, http://www.thehindubusinessline.com/news/national/bigger-rural-outlay-to-power-growth-fm/article8184816.ece?homepage=true


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