• ALLOCATION UNDER NREGA ENHANCED TO Rs. 40,100 CRORE
  • BACKWARD REGIONS GRANT FUND ALLOCATION GOES UP BY 26%

The Ministry of Rural Development has been provided a budgetary allocation of Rs. 66,100 crore for the financial year 2010-11. This was announced by the Finance Minister, Shri Pranab Mukherjee while presenting the Union Budget 2010-11 in the Lok Sabha . The proposed allocation underlines the focus of Government on development of rural infrastructure.

For Mahatma Gandhi NREGA, the allocation has been enhanced to Rs.40,100 crore for the financial year 2010-11. The scheme has been instrumental in providing assured employment of 100 days to unskilled and manual labourers in the rural areas.

As part of the strategy to bridge the infrastructure gap in backward districts of the country, the Backward Region Grant Fund has proved to be an effective instrument. It has been proposed to enhance the allocation to this fund by 26 per cent from Rs.5,800 crore in 2009-10 to Rs.7,300 crore in 2010-11.

An additional central assistance of Rs.1,200 crore is being provided for drought mitigation in Bundelkhand region.

Allocation for Indira Awas Yojana (IAY) one of the flagship schemes providing housing to the rural poor by construction/upgradation of houses for the BPL in rural areas is being increased to Rs.10,000 crore for the year 2010-11. Unit cost under Indira Awas Yojana is being increased to Rs.45,000 in plain areas and to Rs.48,500 in the hilly areas.

In order to ensure rural road connectivity, under the Pradhan Mantri Gram Sadak Yojana (PMGSY), a total budgetary support of Rs.12,000 crore has been made for development of rural roads including bridges, out of which a provision of Rs.1,114 crore has been earmarked for North-Eastern region and Sikkim

Rural Development- Budget 2010-11 Highlights

• Rs.66,100 crore provided for Rural Development.

• Rs. 40,100 Crore for Mahatma Gandhi NREGA.

• Rs. 48,000 crore for Bharat Nirman.

• Unit Cost under INDIRA AWAS YOJANA increased to Rs.45,000 in Plain Areas and to Rs.48,500 in Hilly Areas

• Additional Central Assistance of Rs. 1,200 crore provided for Drought mitigation in Bundelkhand.

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