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Background Information on Major Initiatives & Announcements for Rural Development Sector in the General Budget 2018-19

Posted On: 01 FEB 2018 2:09PM

The Department of Rural Development has been continuously trying to improve the quality of lives of rural poor households. From Budget provision of Rs. 50,162 crore in 2012-13 the allocation for DoRD went up to Rs. 109042.45 crores in 2017-18. Besides this, higher Finance Commission grant and larger State share in PMGSY and PMAY (G) was also available for programmes of DoRD during 2017-18. All together it amounts to almost three times the total funds available in 2012-13. Besides increased financial provision, the Department of Rural Development has undertaken far reaching governance reforms for promoting transparency, using the Socio-Economic Caste Census- 2011 (SECC 2011), IT/DBT payment system, transaction-based programme MISs and space technology for geo-tagging of assets.

            The PMGSY set out to provide all weather road connectivity to 1,78,184 habitations of 500 population in plain areas and 250 population in hilly areas. As of March, 2014, 97838 habitations (55%) were connected. Today 1,30,947 habitations stand connected under PMGSY and another 14,620 through State Governments’ programmes bringing the total habitations connected to 82%. In 2016-17, a total of 47,447 kms roads were constructed at a speed of 130 kms per day. Efforts are being made to take this to 51,000 kms at a speed of 140 kms per day in 2017-18. This will enable achievement of completed all weather road connectivity to all the eligible habitations by March, 2019.

            Realising the importance of good wide roads to agriculture market (mandis), we want to consolidate the rural road network by providing for upgradation of existing selected rural roads based on their economic potential and their role in facilitating the growth of rural market centres and rural hubs. This will further strengthen Phase-II which is already under implementation. 1,10,000 kilometers of upgradation is proposed as PMGSY-III. To do so, annual funding support of Rs. 19,000 crore will be maintained, from the Central Government upto 2022. Prime Minister’s dream of “New India 2022” requires connectivity and also consolidations of roads that connect markets, to enable farmers to get the benefit of markets.

            Realising the importance of improved road maintenance and GIS mapping of all roads, for States/UTs to qualify for Phase-III, they will have to necessarily ensure a robust maintenance policy and funding along with completion of GIS mapping of all roads. This will ensure maintenance of PMGSY roads at high standards. 15% of all PMGSY roads are now being taken up through use of innovative green technologies like use of waste plastic, geo-textiles, fly ash, iron and copper slag and cold mix. This not only reduces cost of construction, but also promotes use of local and ‘waste’ materials, thereby reducing carbon footprint.

            For diversifying livelihoods the Deendayal Antyodaya Yojna-National Rural Livelihood Mission has successfully brought more than 4.5 crore women into the fold of SHGs. Through capacity development and skill training, the Bank linkages for economic activities have expanded considerably in the last few years. From Bank linkages of Rs. 23,953 crore in 2014-15 the current outstanding loans stands at nearly Rs. 60,000 crores. Women SHGs in Northern, Eastern and North-Eastern States are also diversifying livelihoods like the SHGs in Southern States did over the last few decades. This facilitates poor households coming out of poverty by increasing productivity assets and incomes. Work with over 32 lakh women farmers is also going on for sustainable agriculture moving towards development of 1000 organic clusters. DAY-NRLM and MGNREGS along with Ministry of Agriculture will provide support for developing market infrastructure for these women SHGs, Producer Groups and Producer Companies.

            MGNREGS has provided the role of social insurance in times of need. The resources for wage employment have been effectively utilized over the last three years to improve livelihood security of poor households and also to promote climate resilient agriculture through effective water conservation, afforestation and asset development. Over 10 lakh farm ponds and 6.7 lakh compost pits have already been completed during this period besides over 1.6 lakh Liquid Resource Management soak pits and Solid Resource Management spread across many States. MGNREGS resources have also been used convergently with the PMAY(G) to provide 90/95 days of work and Rs. 12,000 either through Swachch Bharat Mission or MGNREGS for individual household latrines with the new homes of poor people. During the last three years over 71.50 lakh houses have already been completed which include 17.83 lakh PMAY(G) houses. Another 33 lakh PMAY(G) homes are expected to be completed by 31st March, 2018 as they are already at an advanced stage. MGNREGS has been used as a livelihood resource and a range of individual beneficiary schemes like farm ponds, irrigation wells, goat sheds, dairy sheds, poultry sheds etc. has been constructed for poor households using these resources.

            The DoRD hopes to continue this resolve to eliminate rural poverty in the new India of 2022 through concerted action for livelihood diversification and improved infrastructure. The Department already started work on 5,000 Clusters spread over 50,000 Gram Panchayats in partnership with the State Governments to simultaneously address all the dimensions of poverty effectively. The DoRD develops skill for wage employment under DDUGKY and self employment through Rural Self Employment Training Institutes (RSETI) for over 7 lakh poor households every year. Efforts to improve skill and capacity development for poor households significantly over the current level will be made using the Skill India initiatives more effectively along with even better implementation of DDUGKY and RSETI programmes.

            In the last Budget, announcement had been made regarding Mission Antyodaya bringing one crore households in 50,000 Gram Panchayats out of poverty. The Department of Rural Development has done a ranking of these Gram Panchayats, purposively selected by the State Governments. The gaps on infrastructure, human development and economic parameters have been identified and our Government in committed to bridge these gaps and make a difference in the life of the poorest households.

            Efforts to develop 300 Rurban clusters and nearly 1200 Saansad Adarsh Gram Panchayats is also part of the Mission Antyodaya thrust. Over 8000 Mission Antyodaya Gram Panchayats fall 115 aspirational districts. All efforts for their speedy development through livelihood diversification will be made. Under the Mahila Kisan Sashaktikaran Pariyojana (MKSP), work is going on with over 32 lakh women Self Help Group Members for sustainable agriculture. For promoting Indian Agricultural Exports, developing geographical areas which are certified as organic, in important, through its women Self Help Groups in Mission Antyodaya clusters, will work towards developing at least 1000 cluster for sustainable agriculture through convergence focused on water conservation, solid and liquid waste management linked to manufacture of organic compost for use in organic farming, skill development, banking linkage, livelihood infrastructure facilities etc.