Question : DECLINE IN RURAL DEVELOPMENT

(a) whether the India Rural Development Report has pointed to the disturbing trend of investment in rural development declining over the years in the States; and

(b) if so, the corrective action taken/proposed to be taken by the Government in this regard?

MINISTER OF STATE IN THE MINISTRY OF PLANNING, MINISTER OF STATE IN THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION AND MINISTER OF STATE OF THE DEPARTMENT OF ADMINISTRATIVE REFORMS AND PUBLIC GRIEVANCES IN THE MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS.

(SHRI ARUN SHOURIE)

(a) Yes, Sir. The India Rural Development Report 1999 prepared by National Institute of Rural Development (NIRD), Hyderabad had stated that `In the early years of planning, about a fifth of the total allocations were made towards all agricultural and rural programmes including irrigation, flood control and related areas, but this has undergone changes since the Fourth Five Year Plan. In the late 1990s, the combined state and Central expenses on agriculture and allied activities, irrigation and rural development does not exceed 12 per cent. The Central Government spends about eight per cent and state governments, about 16 per cent`.

(b) The details of expenditure accounted for by the NIRD in working out the trends in investment in rural development have not been specifically indicated in the Report. Investments in agriculture, rural development and water resources, (which include irrigation and flood control) accounted for 33.31% of the gross budgetary support for the Eighth Plan period. The corresponding percentage for the Ninth Plan period was 29.14%. The table given below indicates the yearwise details of gross budgetary support to the Ministries of Agriculture, Rural Development and Water Resources. The budget support to these Ministries, which was 25.66% of the total budget support to annual plan in 1992- 93 increased to 36.62% in 1996-97. It is 29.59% in 1999-2000. In addition to the budgetary support to these three Ministries mentioned above, other Ministries/Departments of the Central Government also spend a substantial proportion of their plan allocation on programmes, which benefit the population residing in rural areas.

Gross Budgetary Support (GBS) to the Central Plan	(Rs crore)
S. Year Agriculture Rural Dev.	Water Res. Total (Col 3 to 5)	GBS col 6 as
No.	% of	GBS

1. Eighth Plan 9495.47 31682.00 2373.45 43550.92 130727.46 33.31

2. 1992-93 1408.00 3100.00 240.00 4748.00 18501.00 25.66

3. 1993-94 1918.00 5060.00 289.10 7267.10 23241.43 31.27

4. 1994-95 2005.00 7070.00 275.42 9350.42 27277.55 34.28

5. 1995-96 2144.00 7760.00 302.00 10206.00 28994.22 35.20
6. 1996-97 2020.47 8692.00 1266.93 11979.40 32713.26 36.62

7 Ninth Plan 14877.00 42278.00 2291.00 59446.00 203983.00 29.14

8. 1997-98 2066.00 9096.00 341.00 11503.00 36130.00 31.84

9. 1998-99 2854.00 9912.00 396.00 13162.00 42464.00 31.00
10 1999-2000 2896.40 9751.00 370.00 13017.40 44000.00 29.59