Discussing Budget 2016-17 | Rural Sector

In this section, we will deal with the sector which is very important for a country like India, where more than two-third of the population resides in villages – Rural Sector.

Take a look at basic statistics, which will give you a larger picture about govt.’s approach towards rural sector, where emphasis is on rural employment and infrastructure:

  • Total allocation for rural sector is 87,700 cr
  • Rs. 2.87 lakh cr grant-in-aid to Gram Panchayats and Municipalities
  • Rs. 38,500 crore has been allocated for MGNREGS in 2016-17
  • 100% village electrification by May 2018
  • 300 Rurban Clusters will be developed under the Shyama Prasad Mukherjee Rurban Mission
  • Digital Literacy mission to cover additonal 6 cr households


Focus Areas

#1. Decentralization

As per 14th Finance Commission recommendations, the budget has allocated a sum of Rs. 2.87 lakh cr grant-in-aid to Gram Panchayats and Municipalities, which is higher by 228% as compared to the previous 5-year period.

Each Gram Panchayat will receive an average assistance of Rs 80 lakh, where as each Urban Local Body will get Rs. 21 cr.

#2. Mitigating Rural Distress

  • Every block in the distress areas will be set up as an intensive Block under the Deen Dayal Antyodaya Mission
  • Formation of Self Help Groups will be speeded up to promote multiple livelihoods
  • Cluster Facilitation Teams will be set up under MGNREGS to ensure water conservation and natural resource management
  • Priority to these districts under Pradhan Mantri Krishi Sinchaii Yojna

#3. Infrastructure Creation

Govt will develop 300 Rurban clusters under the Shyama Prasad Mukherjee Rurban Mission.

These Clusters will incubate growth centres in rural areas by providing infrastructure amenities and market access for the farmers. They will also expand employment opportunities for the youth.

#4. Electrification

Govt is targeting to achieve 100% village electrification by 1st May, 2018. The budget has allocated Rs. 8,500 crore for Deendayal Upadhayaya Gram Jyoti Yojna and Integrated Power Development Schemes.

#5. Modernization of Land Records

Govt. has revamped National Land Record Modernisation Programme, to build an integrated land information management system, which is critical for dispute free titles.

#6. Sanitation

Govt. will reward villages that have become free from open defecation, under Swachh Bharat Mission

New Initiatives

Promotion to Digital Literacy

About 12 crore households out of the total 16.8 crore rural households, do not have computers and are unlikely to have digitally literate persons. In this regard, there are already 2 schemes, which are approved to promote digital literacy:

  • National Digital Literacy Mission
  • Digital Saksharta Abhiyan

Govt. will launch a new Digital Literacy Mission Scheme for rural India to cover around 6 crore additional households within the next 3 years. This will help India to derive greater benefit from our demographic advantage.

Improving Governance of PRI’s

Govt. will make efforts to develop governance capabilities of Panchayat Raj Institutions so that they can deliver on the Sustainable Development Goals. In this regard, govt. has proposed to launch a new restructured scheme, called Rashtriya Gram Swaraj Abhiyan.

PS: Please click on the green hyperlinked text to read more about the concepts. Revise and revise & feel free to ask pertinent questions.


Published with inputs from Pushpendra | Image: Finmin
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