Question : Non-Utilisation of Funds under Rural Development Schemes

(a) whether a major portion of funds allocated for rural development schemes including Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) have not been utilized by the State Governments;

(b) if so, the quantum of unutilized funds, Scheme-wise and State-wise;

(c) whether the Government has taken any effective steps to resolve the problem of the said unutilised funds in various States and for the optimum utilization of funds allocated under various rural development schemes;

(d) if so, the details thereof and if not, the reasons therefor; and

(e) whether the Government proposes to formulate any action plan to monitor the financial and actual progress and to establish co-ordination between the Centre and the States in the implementation of the Schemes including MGNREGS and if so, the details thereof, Scheme-wise?

MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT
(SHRI RAM KRIPAL YADAV)

(a) to (e): No Madam. Most of the funds allocated for rural development schemes are utilized by the States/UT Administrations. In order to ensure that the programme benefits reach the rural poor in full measure and to monitor the progress made under rural development programmes, the Ministry has evolved a comprehensive multi-level and multi-tool system of monitoring and evaluation of the implementation of rural development programmes, including Performance Review Committee Meetings, District Development Co-ordination and Monitoring Committee named as “DISHA”, National Level Monitors, Area Officers Schemes, Common Review Mission, Concurrent Evaluation and Impact Assessment Studies.

To stream line the fund flow system, the Ministry has initiated National Electronic Fund Management System (NeFMS) since 1st January, 2016. Now, under MGNREGA, 96% of wage payments are being electronically created into worker’s bank accounts through DBT. Similarly, all payments pertaining to PMAY-G to are made electronically through Fund Transfer Order (FTO) form the State Nodal Bank Account. All the States / UTs have opened single State Nodal Bank Account for direct transfer of assistance to the beneficiary’s Bank/ Post Office account.

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