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Resource centre on India's rural distress
 
 

Reviving growth: Focus on rural India -Aruna Sharma

-Financial Express

If panchayat allocations are merged with MGNREGA to aid asset creation, it can trigger infrastructure growth, resulting in extra income and improved conditions.

There is a lot of debate around 5% GDP growth and its impact on the organised sector. Although the government has been taking multiple steps to trigger the economy, there is a need to focus on rural India, in terms of optimising of fund allocations and revision of MGNREGA wages. This may improve earnings in rural India, supported by good kharif crop. And, could be the beginning of recovery in consumer goods demand and, eventually, the economy. A further push towards systematic value addition locally in the form of strategic investments in industries and group of Panchayats may provide extra income and employment.

More than two-thirds of the country resides in 6 lakh villages. The 73rd and 74th amendment to the constitution and the finance commission directly providing funds to the local self bodies have transformed rural infrastructure. A panchayat with a population of 2,500 gets around Rs. 60-70 lakh per annum, one with a larger population of around 20,000 gets Rs. 2.5 crore. If allocations are merged with MGNREGA to aid asset creation, it can trigger infrastructure growth, resulting in extra income and improved conditions.

The first requirement will be to ensure the development of non-negotiable structures like development of drainage following systematic planning of topography, cement concrete lanes for every habitat in village, source for drinking water, piped drinking water, pucca housing, Panchayat bhavan with computer and internet connectivity, appropriate school buildings, play grounds etc. This will require drawing from pool of funds from ministry of rural development, Panchayat, drinking water and sanitation. Funds from human resource department, women and child welfare for anganwadi buildings can also be used.

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