Big push for rural development projects in Union Budget

Giving a push to its rural development projects, government today announced a 144 per cent jump in the allocation for the flagship job guarantee scheme, NREGA, and 45 per cent hike for the Bharat Nirman programme that seeks to improve infrastructure in villages.     

Presenting the 2009-10 Budget, Finance Minister Pranab Mukherjee announced an allocation of Rs 39,100 crore for NREGA for 2009-10, an increase of 144 per cent over 2008-09.     

Mukherjee also proposed convergence of NREGA with other schemes relating to agriculture, forest, water resources, land resources and rural roads.     

In the first stage, a total of 115 pilot districts have been selected for such convergence, he said.     

The minister informed that details of these measures and convergence guidelines would be formulated by the Rural Development Ministry.     

Presenting the Budget proposals, the Finance Minister said, "NREGA has been a magnificent success for more than 4.47 crore households during 2008-09."     

The Finance Minister also said allocation for Bharat Nirman programme is being hiked by 45 per cent. The project covers six schemes, including rural roads, drinking water and sanitation in villages.

Mukherjee also announced that Rs 2,000 crore is proposed to be allocated for rural housing fund in the National Housing Bank.     

"This will boost the resource base of National Housing Bank for their re-finance operations in rural housing sector," the minister said.     

He added that allocation for Pradhan Mantri Gram Sadak Yojana is proposed to be increased to Rs 12,000 crore. For Indira Aawas Yojana, the allocation has been increased to Rs 8,800 crore.