Outlay in key rural schemes reduced by Rs 12,637 cr: Par panel

Budgetary allocations in key rural development schemes like IAY, PMGSY, and NRLM have been reduced to the tune of over Rs 12,637 crore, a Parliamentary Panel has said, while expressing its "unhappiness" over the reduction in the outlay.
The Standing Committee on Rural Development headed by AIADMK's P Venugopal has in its tenth report made a strong pitch for increasing the allocations under these schemes and asked the Ministry of Rural Development to pursue the matter with the Finance Ministry keeping in view the importance of rural development for inclusive growth.
The panel said it was constrained to note that as a consequence of reduced outlay, the physical targets have also been proportionately reduced in the major rural development schemes like Indira Awas Yojana (IAY), Pradhanmantri Gram Sadak Yojana (PMGSY), National Social Assistance Programme.

"The Committee observe from the action taken reply furnished by the Ministry that the budgetary allocations in almost all important schemes of rural development like IAY, PMCGSY, NRLM (Aajeevika), PMGSY and NSAP have been reduced instead of getting it enhanced.
"The Committee express their unhappiness over the reduced allocation in such important schemes of rural development and strongly reiterate their recommendations that budgetary allocations at enhanced level should be made in all these schemes crucial for rural development of the country so that the schemes could be effectively implemented to achieve physical targets," the panel said.
It felt that due to less allocation, the targets of these schemes could not be fixed at higher levels.

The Committee had in an earlier report noted that the Demands for Grants of rural development department tabled in Lok Sabha on July 24 last year made a provision of Rs 80093.33 crore, which was Rs 12,637.76 crore less than the proposed outlay of Rs 92,679.76 crore for the department that was placed before the Planning Commission.
It has also recommended that the rural development ministry should pursue the matter with Ministry of Finance and Planning Commission for higher allocation by emphasising the various important parameters, which form the basis for allocation for various schemes in a financial year.
The panel also said that the ministry should fully utilise the allocated funds for achieving the plan targets and effective implementation of the various schemes and programmes for an inclusive rural development in the country.