Budget allocation for rural development ministry up by 12%

Under the 'Lakhpati Didi' initiative, which comes under DAY-NRLM, each self-help group (SHG) household is encouraged to take up multiple livelihood activities coupled with value chain interventions, resulting in a sustainable income of Rs 1 lakh or more per year.

Budget allocation for rural development ministry up by 12%

Thursday February 01, 2024,

3 min Read

The government on Thursday increased the rural development ministry's budget to Rs 1.77 lakh crore for 2024-25 from last year's Rs 1.57 lakh crore, an increase of around 12%.

However, when compared to the revised estimates, a mid-year review of expenditure done by the ministry stood at Rs 1.71 lakh crore, an increase of 3%.

In the interim budget presented in Parliament by Finance Minister Nirmala Sitharaman, the allocation for the flagship Mahatma Gandhi National Rural Employment Guarantee Scheme for 2024-25 was Rs 86,000 crore, around 43 per cent more than Rs 60,000 crore made in the last budget.

However, the revised estimate shows the expenditure on the scheme in the last financial year was Rs 86,000 crore, the same as the allocation made for the coming fiscal.

In 2022-23, the government had allocated Rs 73,000 crore for the scheme, while the actual expenditure, according to that year's budget document, was Rs 90,805 crore.

In 2021-22, Rs 73,000 crore was allocated to the scheme under the rural development ministry, while Rs 98,467.85 crore was the actual expenditure. In 2020-21, Rs 1.11 lakh crore was spent on the scheme, according to budget documents.

The scheme provides guaranteed 100 days of wage employment in a financial year to at least one member of every household whose adult members volunteer to do unskilled manual work. It also earmarks at least one-third of jobs for women.

In her pre-election budget, Finance Minister Sitharaman also announced that another two crore houses will be constructed under the Pradhan Mantri Awas Yojana-Gramin in the next five years. The allocation for the scheme was Rs 54,500 crore in the budget presented.

In 2023-24, Rs 54,487 crore was provided for the PMAY(G). However, the revised estimate stands at Rs 32,000 crore, around 41 per cent of the allocated amount.

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Sitharaman also announced that the target for creating 'Lakhpati Didis' has been increased from two crores to three crores.

Under the 'Lakhpati Didi' initiative, which comes under DAY-NRLM, each self-help group (SHG) household is encouraged to take up multiple livelihood activities coupled with value chain interventions, resulting in a sustainable income of Rs 1 lakh or more per year.

The allocation for the National Livelihood Mission-Ajeevika was Rs 15,047 crore, around six per cent more than last year's Rs 14,129.17 crore. The revised estimate for the scheme also stands at Rs 14,129.17 crore.

The allocation for the Pradhan Mantri Gram Sadak Yojna has come down. The allocation in this budget for 2024-25 was Rs 12,000 crore against Rs 19,000 crore last time. The expenditure according to the revised estimate was Rs 17,000 crore.


Edited by Affirunisa Kankudti

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