Pointing out that the rural sector was dear to Mahatma Gandhi's heart, Finance Minister Arun Jaitley on Wednesday announced the highest-ever allocation under rural job scheme, MNREGA, raising the budget provision from Rs 38,500 crore in 2016-17 to Rs 48,000 crore in 2017-18.
While providing at least 100 days' employment to every rural household, MGNREGA should create productive assets to improve farm productivity and incomes, Jaitley said.
“In fact, against 5 lakh farm ponds, it is expected that about 10 lakh farm ponds would be completed by March 2017. During 2017-18, another 5 lakh farm ponds will be taken up. This single measure will contribute greatly to drought proofing of gram panchayats,” he added.
To ensure completion of the current target under rural road scheme PMGSY by 2019, the Budget provisions stand at Rs 19,000 crore in 2017-18. Together with the contribution of States, an amount ofRs Rs 27,000 crores will be spent on PMGSY in 2017-18, he said.
Similarly, Rs 23,000 crore has been allocated to Pradhan Mantri Awaas Yojana - Gramin from Rs 15,000 crores in BE 2016-17 to complete 1 crore houses by 2019 for the houseless and those living in kutcha houses.
The Government aims to achieve 100 per cent village electrification by May 1 next year. An increased allocation of Rs 4,814 crore has been proposed under the Deendayal Upadhyaya Gram Jyoti Yojana in 2017-18 while allocations for Deendayal Antyodaya Yojana- National Rural livelihood Mission for promotion of skill development and livelihood opportunities for people in rural areas has been kept at Rs 4,500 crore in 2017-18. The allocation for Prime Minister's Employment Generation Programme (PMEGP) and credit support schemes has been increased more than 3 times, said the Finance Minister.
To build capacity in the Panchayati Raj institutions for implementing development programmes, a "human resource reforms for results" scheme is planned to be launched in 2017-18.
However, People's Action for Employment Guarantee, a group led by social activist Aruna Roy said, “At first glance it would seem as if the Finance Minister's announcement of an allocation of Rs 48,000 crore for MGNREGA is a dramatic increase of nearly 25 per cent over last year's allocation of Rs 38,500 crore. In fact, the increase is a mere 1 per cent, of Rs 500 crore, as two supplementary allocations during the course of the year made the total Budget of 2016-17, Rs 47,500 crore.