Question : Rural Development Schemes

(a) the basis for allocation of funds under various rural development schemes;

(b) whether the Government proposes to allocate more funds to the States which are performing well in implementation of the schemes and if so, the details thereof;

(c) whether any guideline has been issued in this regard; and

(d) if so, the details thereof?

Answer given by the minister


(a) to (d ): A Statement is laid on the Table of the House.


Statement referred to in reply to parts (a) to (d) of the Lok Sabha Satrred Question No. 400 for reply on 22.03.2018

(a) to (d): The Ministry of Rural Development, inter-alia, is implementing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM), Deen Dayal Upadhyay – Gramin Kaushalya Yojana (DDU-GKY), Pradhan Mantri Awaas Yojana – Gramin (PMAY-G), Pradhan Mantri Gram Sadak Yojana (PMGSY) and National Social Assistance Programme (NSAP) to bring about overall improvement in the quality of life of the people in rural areas through employment generation, skilling of youths, provision of social assistance and other amenities. These Centrally sponsored schemes are implemented through State Governments/UT Administrations.

Allocation of fund to States/UTs is made based on the respective programme guidelines. Under MGNREGA, the funds are released to the States on the basis of Labour Budget (LB), opening balance, pending liabilities of the previous year for the financial year, if any, and overall performance of the state. Under DAY-NRLM, the allocation of funds to States is made on the basis of inter-se poverty ratio of the states. There is a provision in the DAY-NRLM guidelines to provide an additional instalment of DAY-NRLM funds to better performing States based on physical and financial progress. As per DAY-NRLM guidelines, States are eligible for additional instalment subject to utilisation of 75% of available funds by 31st December and good performance on key NRLM parameters. DDU-GKY is demand driven scheme and funds are allocated to the States on the basis of Action Plans approved for the States and funds required by the States on target achieved/funds utilized by the them. The funds under Pradhan Mantri Gram Sadak Yojana (PMGSY) are released to the State Governments for the projects sanctioned, based upon their absorption capacity, balance works in hand, unspent balance available, and fulfilling of certain conditions laid down as per the programme guidelines. Out of the total budget allocation for PMGSY, 5-6% is kept aside to be released to be States as financial incentives to better performing States showing higher achievement on the basis of set parameters. Financial allocation under PMAY-G, a target based scheme, is worked out on the basis of unit assistance provided to the beneficiaries. Re-allocation of target for the better performing states under PMAY-G is considered by the Empowered Committee. Under NSAP, state-wise requirement of fund is calculated on the basis of utilization of cap/ceiling communicated to States/UTs on the basis of BPL ratios.


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