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23rd November 2022 (10 Topics)

Centre likely to increase its allocation for rural schemes

Context

The Central Government is likely to raise its allocation to the Rural Development Ministry for the current fiscal year.

Details:

Important Schemes

  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005
  • Deen Dayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)
  • Pradhan Mantri Gram Sadak Yojana (PMGSY)
  • Pradhan Mantri Awas Yojana – Gramin (PMAY-G)
  • PM-KISAN Scheme
  • Allocation to the rural development ministry is likely to increase by 18% to Rs 1.60 lakh crore ($14.19 billion) for the current fiscal year.
  • India had allocated Rs 1.36 lakh crore for 2022/23 for various schemes in the hinterland.
  • The stress in rural areas has led to increased demand for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGA).
  • The rural unemployment rate was 8.04% in October.

Reason for rural areas being under stress

  • Slow recovery to pre-pandemic level
  • Rising Inflation
  • Limited non-farm job opportunities

The declining trend of spending on Government Schemes:

  • Declining fertilizer subsidies: Subsidies have been in decline over the last few years; actual government spending on fertilizers in FY2021 reached Rs1,27,921 crore.

Issues with MGNREGA:

  • Low Wage Rate
  • Inadequate Financing
  • Delay in Payment of Wages
  • Ineffective Role of PRI
  • Fabrication of Job cards
  • Reduced budget of MGNREGA: The allocation for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) went down by approximately 25% in FY22-23.
  • Delayed payments for Accredited Social Health Activists (ASHA): ASHA, who are the first responders, there have been delays in salaries for up to six months.
  • Less funding or wildlife habitat development: Funding under the Ministry of Environment, Forest and Climate Change has declined: from Rs165 crores (FY18-19) to Rs124.5 crores (FY19-20), to Rs87.6 crores (FY2021).
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