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Union Rural Development Minister Dr.

Raghuvansh Prasad Singh has reiterated the Governmen/s resolve to work for the cause of Aam aadmi with the emphasis on poverty eradication and employment generation in rural India. Inaugurating ”9th All India Editors’ Conference on Social Sector Issues” here today he said the efficient fiscal management has made it possible with the budgetary allocation of Rs. 1,93,715 crore for his ministry during the last five years of the Government . The focus is on poverty eradication, wage payment, employment generation, enhancement in self-employment and strengthening of rural infrastructure. The two day conference is being attended by Social sector editors from all over the country along with the leading media persons and the columnists from social sector. . Highlighting the achievements of the ministry the Minister said during the last five years (2004-09) the total budget of the Ministry of Rural Development to Rs.1,93,715 crore. Whereas during 1999-2004 it was only Rs.72,263 crore. It would be appropriate to note that compared to the total 10th five year plan budget provision of Rs.76,000 crore, the current financial year (2008-09) only has been provided with an equal amount. The efficient fiscal management has made it possible and this amount has is being consumed for poverty eradication, wage payment, employment generation, enhancement in self-employment and strengthening of rural infrastructure. The Minister said that major strides have been made under NREGA with the provision of 100 days of employment on a legal basis to desirous families Through Guaranteed wage employment and by creating permanent employment generating assets and conserving the vast natural resources, the government has changed the face of rural India. Under NREGA more than 30 lakh works have ensured the conservation of natural resources, the ground water table has gone up and more than 3.5 crore families have got ensured employment. He said financial inclusion of rural families has gone up and nearly 6 crore bank/post office accounts have been opened resulting in the financial and social empowerment of rural families During the last five years the construction of rural roads has shot up on a very high note and so far road length of 3.5 lakh km. have been sanctioned at a construction cost of Rs.88,700 crore and a total of 1.34 lakh km. all weather road have been constructed in this period as compared to 51,511 km. road length constructed during the four year period of 2004-2004. Under Indira Awas Yojana (IAY) during the five year span of 2004-09 104.31 rural houses have been constructed as compared to 61.77 lakh houses of 1999-2004 period. Under the Integrated Wasteland Development Programme (IWDP) Rs.2,422 crore were released during the 2000-2004 period whereas during the last five years (2004-2009) Rs.5800 crore have been released. A total of 116 crore hectarewasteland was improved during the four year period of 2000-04 compared to the improvement of 150 crore hectare wasteland during the last five years (2004-2009). Under the National Social Assistance Programme the UPA Government is providing pension to 147 lakh beneficiaries under the Indira Gandhi National Old Age Pension Scheme (IGNOAPS) where as only 87 lakh beneficiaries were given assistance during the previous regime. Of the six components of Bharat Nirman Programme the three components of Rural Roads, Rural Housing and Rural Drinking Water Supply a provision of Rs. 85,000 crore was made for the 2005-2009 period. So far the Ministry of Rural Development has used Rs.61,204 crore and by the year end the investment of 13,492.35 crore is proposed. Under the rural road component Rs.48,000 crore were envisaged for the Bharat Nirman Programme period in the Pradhan Mantri Gram Sadak Yojana (PMGSY) of which Rs.28,444 crore have been invested and Rs. 8,579 crore are proposed to be invested by the

a provision of Rs.Secretary Department of Land Resources. setting up of Tehsil and State level data centres. Addressing the gathering .a major aspect related to land reforms in the country especially in the rural areasUnder the National Land Records Modernization Programme (NLRMP) the digitization of land revenue maps. It will help in solving land disputes. Computerisation of registration by interconnecting revenue offices along with the interconnecting of Deputy-Regisrar Offices have been planned in next 8 years across the country. Compared to year 2004 when only 27% Rural families were having toilet facilities now this number has increased to 59%. So far more than 59% rural habitations are equipped with toilet facilities. To ensure high quality in rural roads a three tier quality control management has been put in place. integration of written and local data.20 crore families wer provided with toilet facilities. The Total Sanitation Campaign has witnessed remarkable improvement after enhancing the resources and stage is set now to achieve the Millenium Development Goal target by 2012 instead of 2015. Now all the persons of 65 years and above age from rural BPL families will be provided Old Age Pension under this scheme. During 2007-08 more than 1. computerization of land records.3000 has been made. 2.200 per person. Rita Sinha outlined the progress towards the computerization of land records . The two day conference will provide a forum to the media persons from regional and local media in different languages to discuss the policy initiatives by the Government under the major flagship programs in social sector. .year end. The Central share in this scheme is Rs.625 per unit construction cost of toilets now for plain areas..500 and for hill/remote areas a provision of Rs. The provision of ‘Nirmal Gram Puraskar’ made for prom oting and motivating the concerned persons like the PRIs and NGOs under the TSC has resulted in a mass campaign. The Government has also extended the National Social Assistance Programme and has converted it to the Indira Gandhi National Old Age Pension Scheme (IGNOAPS). provide safety to farmers and will result in the increase in the government revenue. To increase the crop enhancement under the rain fed agriculture and to step up the land development programmes the Government has integrated various Area Development Programmes in to the Integrated Wasteland Development Programme (IWDP) which is now running effectively. Compared to the earlier provisions of Rs.

A number of programmes have been designed to help improve the living conditions of the rural population. A separate window for rural roads was created under RIDF with a corpus of Rs.65 thousand three hundred crore covering 3. a threefold increase in credit as a result of successive Agriculture Budgets. and it will continue to provide interest subvention in 2009-10 to ensure that farmers get short term crop loans up to Rs.080 per quintal for the year 2009. To strengthen the short-term co-operative credit structure. amounts to Rs.550 to Rs. In the period between 2003-04 and 2008-09. Minimum Support Price (MSP) for the common variety of paddy was increased from Rs.900 per quintal for the crop year 2008-09. Wheat prices have increased from Rs. Since 2003-04. through State Governments. In the period between 2005-06 and December 2008. 60 lakh houses were to be constructed under the Indira Awaas Yojana by 2008-09.The focus one Aam Aadmi remains central to the budget. to increase the growth rate of the Agricultural Sector to four per cent per annum during the Eleventh Plan period. since 60 per cent of the Indian population lives in villages. Agricultural Budgets also work to ensure remunerative prices for the farmers for their crops are fair.500 crore in 2003-04 to Rs.4 thousand crore for each of the last three years.5 lakh crore in 2007-08. (iii) Panchayat Empowerment and Accountability Scheme (PEAIS). The Interim Agriculture Budget continues the commitment ot “food security” in India. The Rashtriya Krishi Vikas Yojana was launched in 2007-08 with an outlay of Rs. The corpus of RIDF was increased from Rs. Credit disbursements have already gone up from Rs. The PEAIS is an existing scheme under the central sector plan which has been recognized as a powerful instrument to incentivise States to empower the Panchayats and put in place accountability systems to make their functioning transparent and efficient. The Scheme has been able to restore institutional credit to indebted farmers. The Interim Budget acknowledges the need to build in incentives for encouraging States to devolve funds.87 thousand crore in 2003-04 to about Rs. The RIDF is the main instrument to channel bank funds for financing rural infrastructure. 60.25 thousand crore. The programs designated under the Indian Interim Budget 2009 are: (i) The Rural Infrastructure Development Fund (RIDF).3 lakhs at 7 per cent per annum.13 thousand five hundred crore.12 lakh houses have already been constructed. Given the importance of housing for the weaker sectors of the rural population. . the Indian Government increased Agriculture Budget allocation by a significant 300 per cent. Rural Development Sector The Indian Government continues to accord highest priority to rural development. This includes meeting the food requirement of the poor under the Targeted Public Distribution System (TPDS). the Government is implementing a revival package in 25 States involving a financial assistance of around Rs.6 crore farmers. The total debt waiver and debt relief so far. (ii) Indira Awaas Yojana (IAY). Rural Development Budget .630 in 2003-04 to Rs.14 thousand crore for the year 2008-09 to ensure greater availability of funds for its activities. The scheme has encouraged State Governments to develop their agricultural sectors. This has included measures to increase the flow of credit to agriculture. The Indian Government has proposed to substantially expand the scheme through State allocations. 2008 as scheduled.5. The Agricultural debt Waiver and Debt Relief Scheme for farmers from the 2008 Agriculture Budget was implemented by June 30. central issue prices under the TPDS have been maintained at the level of July 2000 in case of Below Poverty Line (BPL) and Antyodaya Anna Yojana (AAY) categories and at July 2002 levels for Above Poverty Line (APL) category. In spite of higher procurement costs and higher international prices during the last five years.Indian Interim Budget 2009. functions and functionaries and set up an institutional framework for such devolution.2.1.

In the year ending December 2006. Agriculture Budget Since the majority of the Indian population are dependent on Agriculture for their livelihood. The primary components of capital payments include capital expenditure on acquisition of assets like equipment.370.000 crore for farm credit are some of the main outlays for rural India in Budget 2007-08. and the National Rural Employment Guarantee Scheme (NREGS). Budget: A brief look In a nutshell. The main objective is to be self-sufficient in food. and a proposed Rs 225. In the current financial year. the India Budget places an emphasis on agriculture.000 crore including a grant component to state governments of Rs 3.350 crore over the previous budget. India also aims to offer cheaper credit to farmers as part of an ongoing scheme to bring farmers into the banking system.(iv) Project Arrow. Presented by Finance Minister P Chidambaram to Parliament on February 28.696 crore to Rs 24. termed as market loans. This Project will receive full government support as it will enhance the services offered to India and will also lay the foundation for a vibrant delivery mechanism for many social sector schemes such as Pensions. from Rs 18. machinery. The primary components of capital receipts include loans brought up by Government of India from public. in keeping with the government's plan to marry growth with equity and social justice A 31% hike in allocation towards the Bharat Nirman programme for upgrading rural infrastructure. gross fiscal deficit and the gross primary deficit of the Central Government. The Department of Posts has launched “Project Arrow” to revitalize its core operations and to provide new technology enabled services to both rural and urban Indians.580 crore. the India Budget depicts receipts and expenses along with full details of tax revenues and other receipts. up from Rs 2. The outlay for the AIBP is to be increased from Rs 7. the budget proposes that an additional irrigation potential of 2. Capital payments also include transactions in the Public Account and investments in shares. 35 projects will be completed under the AIBP. 53. including 900.000 hectares be created.000 new farmers were brought into the institutionalised credit system.000 hectares under the Accelerated Irrigation Benefit Programme (AIBP).400. land and buildings. Some of the other components of capital receipts include borrowings by Government from Reserve Bank and loans obtained from foreign governments and bodies. The .603 crore. The budget also explains the revenue deficit.121 crore to Rs 11. So far this has been successfully implemented in 500 post offices in the country. Budget 2007: Rural infrastructure gets 31% hike The thrust on agriculture and India's rural areas continues in India's Union Budget 2007-2008.

now in place in 262 districts. Pulses and Maize Development Programme will be expanded with sharper focus on scaling up the production of breeder. The scheme will be finalised by the Ministry of Water Resources and will be transferred to NABARD. An agreement with Andhra Pradesh is expected to be concluded in March 2007 to cover 3. involving a total amount of Rs 16. One of the government's most ambitious programmes is expected to be extended to 330 of India's poorest districts in the financial year 2007-2008. A weather-based crop insurance scheme will be started by the Agricultural Insurance Corporation on a pilot basis as an alternative to the NAIS. Rs 100 crore allocated for the National Rainfed Area Authority set up under last year's budget. promoting self -employment among the rural poor.800 crore. a pilot project was launched to restore and rejuvenate waterbodies in 13 states.677 crore.200 crore to Rs 1.000 hectares.target for 2007-08 is set at Rs 225.452 crore. Additionally.763 waterbodies with a command area of 400.000 new farmers accessing credit. Based on a study. since it is a demand-driven scheme. around Rs 12. rubber.000 water bodies with a command area of 250. The World Bank signed a loan agreement with Tamil Nadu for Rs 2. The National Agricultural Insurance Scheme (NAIS) will be continued for the 2007-08 kharif and rabi season. The Agriculture Technology Management Agency (ATMA). the National Bank for Agriculture and Rural Development (NABARD) will issue government-guaranteed rural bonds to the extent of Rs 5.800 crore has been provided for the Sampoorna Gramin Rozgar Yojana in districts not covered by the NREGS. Allocation for the Swaranjayanti Gram Swarozgar Yojana. In March 2005. with an allocation of Rs 100 crore for 2007-08. However. The plan includes a scheme for the induction of high-yielding milch animals and related activities in order to enhance livelihood options.400 crore will be spent on water-related schemes. a pilot programme will be implemented in at least one district in each state to deliver subsidies directly to farmers. . with a budgetary provision of Rs 500 crore. To augment its resources for refinancing rural credit cooperatives. Other budgetary allocations and schemes for the farm sector are: The 2% interest subvention scheme for short-term crop loans will continue with a provision of Rs 1. has been increased from Rs 1.000 to the National Rural Employment Guarantee Scheme. foundation and certified seeds.000. A Special Purpose Tea Fund to rejuvenate tea production. To address the problem of poor availability and quality of certified seeds. yet to be conducted. The amount of fertiliser subsidy has been increased from Rs 17. The budget has also allotted Rs 12. Provision for ATMA will be increased from Rs 50 crore to Rs 230 crore. will be extended to another 300 districts. Rs 1.000 crore with an addition of 50. Government will fund the expansion of the Indian Institute of Pulses Research. Financial mechanisms for replantation and rejuvenation will also be implemented for coffee. Of this.979 crore. an amount of Rs 2. and offer other producers a capital grant or concessional financing to double production of certified seeds within a period of three years. to be distributed through lead banks in the districts to the beneficiaries.182 crore to restore 5. cashew and coconut plantations. Oilpalm. the budget will be supplemented as required.253 crore to Rs 22.000 crore with suitable tax exemptions. Kanpur.000 hectares. spice. the Integrated Oilseeds. A special plan is being implemented over a period of three years in 31 suicide-prone districts in four states.800 crore has been allocated for a water recharging scheme that will offer a 100% subsidy to small farmers and 50% to other farmers to encourage them to recharge water by diverting rainwater into 'dug wells'.

000 crore from Rs 10. is to be raised to Rs 12.000 crore in the previous budget.The corpus of the Rural Infrastructure Development Fund. A separate window for rural roads will continue.000 crore . with a corpus of Rs 4. which sanctions and disburses funds to state governments.