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2020-02-02

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Indian Economy
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Ministry of Rural Development

Government Committed to Improve Ease of Living of The Rural Population; Resolves to Address issue of Rural Poverty

Union Budget (2020-21) allocation for Rural Development Higher in Comparision TO (2019-20)

Posted On: 01 FEB 2020 4:02PM by PIB Delhi

The Union Budget 2020-21 has proposed to earmark Rs.1,20,147.91 crore for the Department of Rural Development (DoRD) which is higher in comparison to BE 2019-20 which was Rs.1,17,647.19 crore. Department of Rural Development administers some of the most critical Centrally Sponsored Schemes (CSSs) in close collaboration with the States, in the areas of Rural Employment, Rural Housing, Rural Roads, Social Assistance and Promotion of Rural Women Self-Help Groups (SHGs). Under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pradhan Mantri Awas Yojana – Grameen, Pradhan Mantri Gram Sadak Yojana and Deendayal Upadhyay - National Rural Livelihood Mission (DAY-NRLM) enhanced allocation has been made as compared to the previous year. It reflects the commitment of the Government to further improve the ease of living of the rural population on one hand and strong resolve to address the issue of rural poverty on the other.

 Under MGNREGS the major thrust has been accorded to transparency, accountability and creation of durable assets. Emphasis has been given to works on water conservation, construction of Grameen Haats, Village Roads and drains, and a range of individual beneficiary schemes for livelihood diversification. Concerted focus has been on Natural Resource Management (NRM) activities, due to which the expenditure on NRM activities which was 54% in FY 2014-15 has increased to more than 68% during 2019-20. MGNREGS resources would be used to encourage fodder, cultivation and dairy sector.

The number of houses proposed to be constructed has been kept at 70 lakh during 2020-21. The Government has recently launched PMGSY-III to strengthen and widen such rural roads that provide critical connectivity to rural agri. markets, schools and hospitals. It is also proposed to bring a larger number of rural women within the fold of DAY- NRLM. From existing 58 lakh SHGs , the number would be expanded to 78 lakhs by 2023-24. Out of this 8,10,000 SHGs are being formed during the current fiscal. SHGs will be allowed to set up village Agri storage facilities. The Department of Rural Development also aims to elevate women SHG’s nano enterprises to micro enterprises and deepen their access to bank credit.

National Rural Economic Transformation Project (NRETP) has been initiated to scale higher order economic activities in 13 high poverty states under DAY-NRLM. The key activities, under the project, include establishing model cluster level federation, promoting large scale farmer producer enterprises and farmer producers groups, and supporting individual and group non-farm enterprises.

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