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Budget 2023-24: Whither rural development? Allocation for livelihood and other schemes sees 14% cuts

Funds for central sector schemes and projects have been reduced to 113 crore from Rs 126 crore

 
By Himanshu Nitnaware
Published: Wednesday 01 February 2023
The spending for MGNREGA has been reduced to Rs 60,000 crore from Rs 89,400 crore against the previous financial year. Photo: iStock.__

Despite the Centre boasting about increased allocations for rural housing and water supply schemes during the budget presentation, the total budget allotment on this front has been cut down by almost 14 per cent compared to the previous financial year. 

Union Finance Minister Nirmala Sitharaman announced multiple schemes for the development of rural areas during her budget speech in Parliament on February 1, 2023. She announced an increase in funding for the Pradhan Mantri Awas Yojana housing scheme from the current Rs 48,000 crore to Rs 79,590 crore in the next financial year.


Read more: Budget 2023-24: Do you know what growth rate actually implies?


For Jal Jeevan Mission, which aims to provide direct water supply in every household, the fund allocation increased from Rs 60,000 crore to Rs 70,000 crore for the same financial year. 

Among other announcements, the union government promised to build digital public infrastructure to provide information services to farmers, set up Agriculture Accelerator Fund, widely accessible storage capacity to optimise farmers’ income and targeted funding for animal husbandry, dairy and fisheries sectors.

However, the total budget allotment has been slashed across multiple sectors and schemes of the central government. The funds for central sector schemes and projects have been reduced from Rs 126 crore to 113 crore.

The spending for Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has been reduced to Rs 60,000 crore from Rs 89,400 crore against the previous financial year.


Read more: Budget 2023-24: What can it offer for the development of Indian cities?


The rural development funds have been further reduced in the economic services in the rural employment sector. In terms of grants-in-aid to Union Territories, the allotments have decreased from Rs 2,899 crore to Rs 2,794 crore.

Moreover, the under the programme component of the National Rural Livelihood Mission (NRLM) — which includes social mobilisation, community institution and capacity building, financial inclusion, livelihood promotion and convergence — the fund allocation has dropped from Rs 11552 crores to Rs 9494 crores.


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