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Ministry of Rural Development presents recommendations to Finance Commission

New Delhi: The Ministry of Rural Development headed by Secretary Amarjeet Sinha, today made a detailed presentation on the Ministry’s plans on fostering higher inclusive growth, equity, efficiency and transparency – to the Chairperson NK Singh and Members and senior Officials of the Fifteenth Finance Commission.

The Presentation dwelled upon the changing structure of rural economy; Gram Panchayat led, data-driven and accountable development approach; governance reforms for better outcomes and other specific proposals for rural development.

The Ministry made a case for additional resources for Rural India on the account of:-

  • Higher/New State Share – PMGSY, PMAY (G).
  • Extra Budgetary borrowing – PMAY Gramin.
  • Finance Commission transfer.
  • The massive rise in loans to SHGs – Rs.81,077 Cr.
  • Increasing incomes through livelihood thrust – farm ponds, wells, animal sheds/resources.
  • Larger effective transfer due to governance reforms – IT/DBT – Decline in leakages.
  • Other specific proposals of Rural Development like maintenance of roads, transfer of certain schemes, and Human Resource Reforms.

The presentation also made a case of Government’s Reforms and conversant Growth Panchayat Development:-

  • Governance Reform and Convergent Gram Panchayat Development Plans as necessary pre-condition for fund transfers
  • Capacity building of Panchayats (along with women SHGs), use of technology, data-driven financial management reforms, and geo-tagging as necessary conditions.
  • Comprehensive HR as part of recommendations.
  • Earmarking for road maintenance.
  • Transferring DRDSs to States.

The Commission shall now take into consideration all the issues raised for the purpose of framing its recommendations to the government.

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