Ministry of Rural Development presents Recommendations for Fostering Higher Inclusive Growth to the Finance Commission

The Ministry of Rural Development headed by Secretary Shri Amarjeet Sinha, today made a detailed presentation on the Ministry’s plans on fostering higher inclusive growth, equity, efficiency and transparency – to the Chairperson Shri N.K. 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.
• Massive rise in loans to SHGs – ₹ 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.