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Centre likely to increase its allocation for rural schemes

  • Published
    23rd Nov, 2022

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


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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