GOVERNMENT OF INDIA OUTCOME BUDGET

Transcription

1 GOVERNMENT OF INDIA OUTCOME BUDGET OF DEPARTMENT OF RURAL DEVELOPMENT MINISTRY OF RURAL DEVELOPMENT

2 CONTENTS Page No. EXECUTIVE SUMMARY - (i) - (iv) CHAPTER I - Introduction 1-6 CHAPTER - II - Outcome Budget CHAPTER III - Reforms measures and Policy initiatives CHAPTER IV - Past performance of the Individual Programmes / Schemes CHAPTER V - Financial Review CHAPTER VI - Performance of Autonomous Bodies CHAPTER VII - Monitoring, Communication And Training Mechanism CHAPTER VIII - Gender & SC/ST Budgeting

3 Executive Summary The Outcome Budget broadly indicates physical dimensions of the financial budgets indicating the actual physical performance in , performance in the first 9 months of the year and targeted performance during The Outcome Budget will be a tool to track not just the intermediate physical outputs that are more readily measurable but also the outcomes, which are the end objectives of State intervention. 2. The Outcome Budget broadly consists of the following Chapters: Chapter-I gives a brief introduction of the functions, organizational set up, list of major programmes / Schemes implemented by the Department, its mandate, goals and policy frame work. Chapter-II contains a tabular format (Statement) indicating the details of financial outlays, projected physical outputs and projected/budget outcomes for Chapter-III gives the details of reforms measures and policy initiatives, if any, taken by the Department during the course of the year. Chapter-IV contains brief write-up of individual programmes/schemes and also the review of past performance during and upto the third quarter of (i.e. up to 31 st December, 2007) in terms of targets already set. Chapter-V gives overall view of the physical and financial targets and achievements under various programmes and the financial review covering overall trends in expenditure viz-a-vis Budget Estimates / Revised Estimates in recent years, including the current year. It also gives the position of outstanding utilization certificates and unspent balances with States and implementing agencies. Chapter-VI covers the performance of Statutory and Autonomous Bodies under the administrative control of the Department. Chapter-VII indicates the existing Monitoring, Information, Education & Communication (IEC) and Training Mechanism being followed in the Ministry. Chapter-VIII deals with Gender and SC/ST Budgeting under various programmes in the Ministry. (i)

4 Monitoring Mechanism 3. The Ministry of Rural Development places special emphasis on Monitoring and Evaluation of its programmes being implemented in rural areas all over the country and has evolved a comprehensive multi-level and multi-tool system of Monitoring and Evaluation for the implementation of its programmes. The salient features are as under: i) There is an in-built monitoring mechanism in the guidelines of each Scheme of the Department so as to ensure that the objectives of the Schemes are achieved by their implementation. ii) iii) iv) Besides visiting States/UTs, the Minister of Rural Development and the Ministers of State for Rural Development review the performance of programmes with the Chief Ministers, Ministers and officials of the State Government concerned with the implementation of the programmes. Apart from continuous monitoring through periodical progress reports received from the State Governments depicting both the financial and physical progress of the programmes, the Ministry also emphasizes on e- governance. All the States/DRDAs have, therefore, been requested to take action to ensure that Monthly Progress Reports compiled by the DRDAs and implementing Agencies are submitted On-line. Furnishing of Utilisation Certificates, Audited Accounts and other requisite reports are a pre-condition for the release of the second and the subsequent instalments. v) The officers dealing with the implementation of the programmes at State Headquarters should visit the districts regularly to ensure that the programmes are being implemented satisfactorily. vi) The Area Officers Scheme introduced by the Ministry aims at monitoring the major programmes of the Ministry with special reference to quality, adherence to implementation schedule, flow of funds, proper utilisation of funds and achievement of physical and financial targets etc., through field visits. Officers visit their assigned State and districts at regular intervals and the important observations of such teams are shared with the State Government concerned, advising them to take appropriate corrective measures, wherever shortcomings are noticed. (ii)

5 vii) ix) A Performance Review Committee under the chairmanship of Secretary (RD) reviews the performance of various programmes being implemented by the States and recommends corrective action wherever found necessary. In order to minimize time lag in receiving progress reports of all the rural development programmes, and improve the quality of reporting, one Nodal Officer from each State co-ordinates with all the concerned Departments implementing rural development programmes in the respective States and attend the monthly review meetings. x) With a view to fulfill the objective of ensuring quality in implementation, particularly in the context of large public funds being spent under all the programmes of the Ministry, the Vigilance & Monitoring Committees are constituted for providing a crucial role for the Members of Parliament and elected representatives of the people in State Legislatures and Panchayati Raj Institutions in the implementation of the Rural Development Programmes. xi) A panel of National Level Monitors (NLMs) by involving ex-servicemen and retired civil servants has also been constituted to ensure effective implementation of rural development programmes in transparent manner and strictly in accordance with programme wise guidelines. xii) Concurrent Evaluation studies are undertaken through reputed and independent Research Institutions/Organisations from time to time to evaluate the performance of various Rural Development Programmes at the field level, to assess the impact of the programmes. xiii) Village based Impact Assessment Studies are also taken up to assess the collective impact of all the programmes of the Ministry on the individual, the community and the area. These studies help in assessing the impact of the programmes and the quality of village life and help in re-designing the concerned programmes to ensure the overall development of rural areas. 4. The existing Monitoring Systems in the Ministry have been explained in detail in Chapter VII. Public Information System 5. Information, Education and Communication (IEC) plays a vital role in creating awareness, mobilizing people and making the development participatory (iii)

6 through advocacy and by transferring knowledge, skills and techniques to the people. Moreover, IEC plays two most important roles informative and persuasive and as such is crucial for bringing about requisite social mobilization and facilitating participatory development. 6. The following four-pronged strategy that has been adopted by the Ministry would be continued to ensure maximum benefits out of the programmes of the Ministry : Creating awareness about the programmes of the Ministry. Ensuring transparency in the implementation of the programmes at the field level. Encouraging participation of the people in the development process. Promoting the concept of social audit and accountability. 7. In view of the magnitude of the task of reaching out to rural poor with information on rural development programmes and to mobilize participation of other segments of the society in rural development, IEC activities have been substantially scaled up. IEC activities undertaken by the Ministry are outlined in detail in Chapter VII. (iv)

7 CHAPTER I INTRODUCTION The basic function of the Ministry of Rural Development is to realise the objectives of alleviating rural poverty and ensuring improved quality of life for the rural population, especially those below the poverty line. These objectives are sought to be achieved through formulating, developing and implementing programmes relating to various spheres of rural life and activities from income generation to environmental replenishment. 2. The Ministry consists of the following three Departments:- (i) Department of Rural Development (ii) Department of Land Resources (iii) Department of Drinking Water Supply 3. The Department of Rural Development implements schemes for generation of self-employment and wage employment, provision of housing to rural poor and construction of rural roads. Apart from this, the Department provides support services such as assistance for strengthening of DRDA Administration, training & research, human resource development, development of voluntary action etc. for proper implementation of the programmes. It also undertakes IEC activities to promote awareness about rural development programmes in rural areas. 4. Department of Land Resources implements schemes to increase the bio-mass production by developing wastelands and degraded lands in the country. It also undertakes development of desert areas and drought prone areas in the country. The Department also provides support services and other quality inputs for land reforms, betterment of revenue system and land records. 5. The provision of drinking water supply and extension of sanitation facilities to the rural poor are the main components of the activities of the Department of Drinking Water Supply. 6. To provide a greater thrust to additional wage employment and food security in the rural areas, Sampoorna Gramin Rozgar Yojana (SGRY) was 1

8 launched in September, 2001 by merging Jawahar Gram Samridhi Yojana and Employment Assurance Scheme. The SGRY is being implemented as a centrally sponsored scheme on cost sharing basis between the Centre and the States. The cash component of the Programme is shared between the Centre and State in the ratio of 75:25. Foodgrains are provided free of cost to the States/Union Territories. The cost of transportation of the foodgrains from the FCI godown and its distribution remains the responsibility of the State/UT Government. 7. With the launch of NREGA in Februry, 2006, SGRY programme in 200 districts had been subsumed in NREGA from in the first phase. Additional 130 districts have been subsumed in NREGA in the second phase of its expansion in The remaining districts will be subsumed in NREGA with effect from The Parliament approved the historic legislation, National Rural Employment Guarantee Act (NREGA) in 2005 which has been notified on 7 th September, The Act provides a legal guarantee of at least 100 days of wage employment in every financial year to every rural household whose adult members volunteer to do unskilled manual work. The Government implemented the Act in 200 districts in the country in the first phase of its implementation launched on 2 nd February, Under phase II, 130 additional districts were notified and brought under its ambit with effect from to cover a total of 330 districts. The remaining districts of the country have also been notified to be covered with effect from thereby universalizing the NREGA within the stipulated time frame. 9. Swaranjayanti Gram Swarozgar Yojana (SGSY) is the single selfemployment programme for the rural poor. The Yojana which came in to effect from , has been conceived as a holistic programme covering all aspects of self-employment like organisation of rural poor into Self Help Groups (SHGs) and their capacity building, training, planning of activity clusters, infrastructure development, financial assistance through bank credit, subsidy and marketing support etc. The subsidy under the scheme is shared by the Centre and State Government in the ratio of 75 : In order to strengthen the DRDAs and to make them more professional and effective, a new centrally sponsored scheme, namely, DRDA Administration was introduced from 1 st April, Under the scheme, grants are released to DRDAs to meet their salary and contingent expenses. The grants under the scheme are released by the Centre and State in the ratio of 75 : 25. 2

9 11. Housing is one of the basic requirements for human survival. For a normal citizen, owning a house provides significant economic security and dignity in society and for a shelterless person, possession of a house brings about a profound social change in life. The Indira Awaas Yojana (IAY) is a flagship scheme of the Ministry of Rural Development to provide houses to the poor in rural areas. Financial assistance is provided to shelterless rural BPL households for construction of their dwelling units. The ceiling for construction of a new house is Rs.25,000/- per unit in plain areas and Rs.27,500/- in hilly/difficult areas. Since , IAY has also become part of Bharat Nirman Programme under which at least 60 lakh houses are to be constructed during the four years from to The grants under the scheme are released by the Centre and State in the ratio of 75 : Rural Road Connectivity is not only a key component of Rural Development but is also recognized as an effective Poverty Reduction Programme. Notwithstanding the efforts made over the years at the State and Central levels through different Programmes, about 40% of India s villages do not have proper road connectivity. Keeping in view the fact that Rural Roads are vital to economic growth and poverty alleviation in the villages, Government have launched a 100% Centrally Sponsored Scheme called the Pradhan Mantri Gram Sadak Yojana (PMGSY). The Programme seeks to provide connectivity to all unconnected habitations in the rural areas with a population of more than 500 persons through good All-weather roads. In respect of the Hill States (North-East, Sikkim, Himachal Pradesh, Jammu & Kashmir, Uttaranchal ) and the Desert Areas, the objective would be to connect habitations with a population of 250 persons and above. 13. A Scheme namely Management Support to Rural Development Programmes and Strengthening of District Planning Process has been introduced from , which primarily focuses on the following: (a) Training and skill development of Rural Development functionaries and members of Panchayati Raj Institutions in rural developement at Centre, State and District/Block level by providing financial support to State Institutes of Rural Development and Extension Training Centres apart from organization of training courses/seminars/workshops relating to rural development programmes. 3

10 (b) (c) (d) Creating awareness amongst the target groups of Rural Development Programmes and mobilizing them towards participatory development; sensitizing opinion makers, urban elites about issues relating to Rural Development and creating awareness amongst the general public. Evolving a comprehensive system for effective monitoring and evaluation of various rural development programmes through periodical progress reports, annual conferences, workshops and seminars and inspection through field visits by Senior officers of the Ministry, besides carrying out in-depth studies in the form of concurrent evaluation and impact assessment studies through reputed and independent research organizations to ascertain the impact of these programmes Exploiting the advances of Information Technology for effective implementation of Rural Development Programmes. (e) Promoting Regional and International exchange of experience of India on mutual and multi-lateral basis in the field of rural development with other developing countries with overall objective of Capacity Building of functionaries involved in rural development. 14. Under the Department of Rural Development there are three autonomous bodies viz. Council for Advancement of People s Action and Rural Technology (CAPART), National Institute of Rural Development (NIRD) and National Rural Roads Development Agency (NRRDA). 15. The Council for Advancement of People s Action and Rural Technology (CAPART) located at New Delhi has been set up to encourage participation of voluntary agencies in rural development and also to provide financial assistance to them for their rural development projects. 16. The National Institute of Rural Development (NIRD), Hyderabad an autonomous body under the control of this Ministry is engaged in planning and co-ordination of national level training research and action research in the field of rural development. 17. The National Rural Roads Development Agency (NRRDA) at New Delhi is another autonomous body extending support to the Pradhan Mantri Gram Sadak Yojana (PMGSY) through advice on Technical Specifications, Project Appraisal, appointment of part time Quality Control Monitors, Management of Monitoring Systems etc. 4

11 18. For critical monitoring of various Rural Development Programmes, the Ministry has also evolved a scheme of Area Officers under which senior officers of the Ministry are allocated specified states for field inspection in every Quarter to review the progress and performance of various Rural Development Programmes with special emphasis on qualitative aspects of the programmes. Based on the findings of the Area Officers necessary corrective measures are taken to improve the implementation of these programmes. 19. The scheme of PURA aims to meet gaps in physical and social infrastructure in identified rural clusters to further their growth potential to stem rural urban migration. Important Programmes 20. The Department implements the following major programmes : (i) Swarnjayanti Gram Swarozgar Yojana (SGSY) (ii) Sampoorna Gramin Rozgar Yojana (SGRY) (iii) National Rural Employment Guarantee Scheme (NREGS) (iv) Indira Awaas Yojana(IAY) (v) DRDA Administration (vi) Pradhan Mantri Gram Sadak Yojana (PMGSY) (vii) National Institute of Rural Development (NIRD) (viii)promotion of Voluntary Schemes and Social Action Programme, organisation of beneficiaries, advancement and dissemination of rural technology through Council for Advancement of People s Action and Rural Technology. (ix) Provision of Urban Amenities in Rural Areas(PURA) (x) Management Support to RD Programmes and strengthening district planning process i.e. Training support to rural development functionaries, Information, Education and Communication, Monitoring Mechanism, International Cooperation, Information Technology etc. 5

12 Implementing Agencies 21. The programmes of rural development are being implemented through the State Government/U.T. Administrations. At the District level, the Zila Parishad/District Rural Development Agencies and down below the Intermediate Panchayat / Block Development Office at Block level and Village Panchayat at village level implement the programmes. The Central assistance is directly provided to the implementing agencies at District level in respect of programmes like SGSY, SGRY, Rural Housing(IAY) etc. District Level Committees and State Level Committees oversee the implementation of the programme. Transmission of Funds to the Implementing Agencies 22. The funds under the various programmes implemented by the Department of Rural Development are mainly released directly to the District Rural Development Agencies (DRDAs) / implementing agencies. In order to minimise the delay in the transmission of funds, a system of telegraphic transfer was in operation for release of funds to the District Rural Development Agencies (DRDAs) / implementing agencies whereas for the release of funds to the States release advices were being sent through FAX messages to R.B.I. Nagpur till However, in order to further minimize the delay in transmitting the funds to the implementing agencies, the Ministry has shifted to e-payment mode from the year e-payment mode involves Core Banking System (CBS) network of accredited banker of the Ministry, Real Time Gross Settlement (RTGS) Mode (being provided by Reserve Bank of India to other banks) and Recipient agency as part of the core banking network or enabled to receive funds in RTGS mode. 6

13 CHAPTER II Outcome Budget for *** 1. The Ministry of Finance has introduced Outcome Budget as a mechanism to measure the development outcomes of all major programmes. The exercise is primarily meant at converting financial outlays into measurable and monitor-able outcomes. It is a performance measurement tool that helps in better service delivery, decision making, evaluating programme performance and results and improving programme effectiveness. The Outcome Budget is also aimed at changing the outlook of the agencies entrusted with the responsibility of programme execution and implementation. The idea is to make the programme implementing agencies more result oriented by shifting the focus from `outlays to `outcomes. 2. The Scheme-wise details, wherever necessary, of the Outcome Budget for are indicated in the attached Statement. 7

14 Sl. No. Name of Scheme / Programme Objective / Outcome DEPARTMENT OF RURAL DEVELOPMENT Plan Outlay (in Rs. crore) OUTCOME BUDGET Quantifiable Deliverables / Physical Outputs Projected Outcomes Processes / Time Lines STATEMENT Remarks / Risk Factors Swarnjayanti Gram Swarozgar Yojana(SGSY) To provide sustainable self employment to the rural poor. 4(i) 4(ii) 4(iii) Non-Plan Budget Plan Budget Complementary EBR (State Share) (Bank credit about 2-3 times of Central + State allocation) a) No. of new SHG to be assisted : b) No. of SHGs swarozgaris to be assisted (assuming 10 members per group) : c) Total No. of individual swarozgaris to be assisted: d) Total No. of Swarozgaris to be assisted (b+c) : It is expected that about 30% to 40% of the swarozgaris taking up economic activities would be able to cross the poverty line in 3-4 years. (a) Allocation of central funds to States/UTs in proportion to rural poverty incidence. (b) Receipt of utilisation certificates from the States/UTs for the earlier releases. (c) Release of matching State share by the States for the earlier year's release made by the Centre. (d) Receipt of Quarterly Progress Reports from the States/UTs. e) Release of the central fun ds to the eligible States/UTs. i) Release of Ist instalment (April- July) ii) Release of 2nd instalment (Sept. onwards) iii) (Lakh Swarozgaris) Ist Qtr nd Qtr rd Qtr th Qtr f) Providing and releasing matching state share by the States/UTs for this year's release. a) Non-receipt of counterpart funding from the States, which is one third of the outlay. (Based on 75:25 funding pattern between Centre:State) b) Non-identification or delay in identification of genuine beneficiaries for current year. c) Lack of adequate local training centres in States/UTs for providing training to beneficiaries in desired skills/activities/trades. d) Inadequate flow of bank credit to swarozgaris. e) Delay in release of State share.

15 S1. No. Name of Scheme/ Programme Objective / Outcome Plan Outlay (in Rs. crore) Quantifiable Deliverables/ Physical Outputs Projected Outcomes Processes/Time Lines Remarks/Risk Factors (i) 4(ii) 4(iii) Non-Plan Budget Plan Budget Complementary EBR 2 National Rural Employment Guarantee Act (NREGA) The NREGA aims to enhance the livelihood security of the people in rural areas through guaranteed wage employment of atleast 100 days in a financial year through works that develop the infrastructure base of that area (State Share) Employment demand. on NREGA is demand based. The mandays generated is a function of demand for employment and prevalent wage rate. Therefore, the outcome will be actual mandays generated on household demand and assets created. (a) Releases to Districts starting from - April '08 based on demand received from the States. a) Delays in preparation and approval of works b) Issue of job cards c) Administrative arrangements for implementation of demand for employment 9

16 Sl. No. Name of Scheme / Programme Objective/Outcome Plan Outlay (in Rs. crore) Quantifiable Deliverables/ Physical Outputs Projected Outcomes Processes/Time Lines Remarks/Risk Factors (i) 4(ii) 4(iii) Non-Plan Budget Plan Budget Complementary EBR 3 Rural Housing (Indira Awaas Yojana) To address the acute shortage of housing among rural BPL families, i) by providing 150 lakh dwelling units as proposed in the 11th Plan document ii) by incentivising and providing financial support to States for providing homestead plots/house sites to the landless poor (State share) lakh Dwelling Units (at the existing unit cost of Rs in plain area and Rs in hilly area) lakh Dwelling Units 1st qtr lakh 2nd qtr lakh 3rd qtr lakh 4th qtr lakh 1) Natural calamaties such as floods, cyclones, earthquakes, which hamper the progress of implementation of the programmes. 2) Elections in some parts of the country when the entire State machinery is diverted to those activities. 10

17 Sl. No. Name of Scheme / Programme Objective/Outcome Plan Outlay (in Rs. crore) Quantifiable Deliverables/ Physical Outputs Projected Outcomes Processes/Time Lines Remarks/Risk Factors (i) 4(ii) 4(iii) Non-Plan Budget Plan Budget Complementary EBR 4 Pradhan Mantri Gram Sadak Yojana(PMGSY) To provide connectivity in rural areas * (Loan from NABARD) habitations to be connected. Construction of Km. roads for new connectivity Kms. under upgradation. a) to improve market access for agricultural produce b) to improve access to health care and educational facilities c) to reduce travel time. (a) Construction of roads and connecting habitations by km. and 4000 habitations. (b) by km. and 3640 habitations. (c) By km. and 4100 habitations. (d) By kms. And 6360 habitations. a) Limited institutional capacity of States. b) limited contracting capacity in States. c) land availability and forest clearance d) Unfavourable weather conditions. e) Timely availability Rs NABARD of from * This includes cess of Rs crore. Budgetary Support of Rs crore and EAP Component of Rs crore. 11

18 Sl. No. Name of Scheme/ Programme Objective/Outcome Plan Outlay (in Rs. crore) Quantifiable Deliverables/ Physical Outputs Projected Outcomes Processes/Time Lines Remarks/Risk Factors Grants to National Institute of Rural Development (NIRD) Enhancement of knowledge, skills and favourable attitudes among trainees for effective implementation of RD programmes, policy recommendations in respect of specific RD programmes. 4(i) 4(ii) 4(iii) Non-Plan Budget Plan Budget Complementary EBR Training Programmes Research & Action Research Studies - 30 Training Programmes Ist Qtr. 40 2nd Qtr rd Qtr th Qtr - 60 (Total - 280) Continuous through academic year. Timely selection and sponsoring by the states/ institutions. 6 Assistance to CAPART To encourage, promote and assist voluntary action and inject new technological inputs in the implementation of the rural development projects No. of projects 950 approx. No. of Gram Shree Melas 40. No. of Yps to be trained 330. Total number of beneficiaries 2,50,000 approx. Each Project will have its own time schedule. 12

19 Sl. No. Name of Scheme/ Programme Objective/Outcome Plan Outlay (in Rs. crore) Quantifiable Deliverables/ Physical Outputs Projected Outcomes Processes/Time Lines Remarks/Risk Factors (i) 4(ii) 4(iii) Non-Plan Budget Plan Budget Complementary EBR 7 Management Support to Rural Development Programme and strengthening of District Planning Process Training and skill development of Rural Development functionaries, technical support to district/block level administrative set up, awareness generation among the target groups and evolving a comprehensive system of effective monitoring Demand based. No targets are fixed

20 DEPARTMENT OF RURAL DEVELOPMENT Sl. No. Name of Scheme / Programme Objective / Outcome Plan Outlay (in Rs. crore) OUTCOME BUDGET (GENDER BUDGET) Quantifiable Deliverables/ Physical Outputs specific to women Financial Outlay specific to women (in Rs.crore) (Central share) Projected Outcomes Processes / Time Lines Remarks / Risk Factors Swarnjayanti Gram Swarozgar Yojana(SGSY) To provide sustainable Self employment to the rural poor No outlay specific to women are made under the scheme. However, 40% of the total swarozgaris i.e. assistance to swarozgaris for approx. an amount of Rs.860 cr. would benefit women. Out of the total swarozgaris to be assisted of lakh, 40% of the swarozgaris assisted will be women. 14 It is expected that about 30% to 40% assisted swarozgaris for taking up economic activities would be able to cross the poverty line over a period of 3-4 years. (a) Allocation of central funds to States/UTs in proportion to rural poverty incidence. (b) Receipt of utilisation certificates from the States/UTs for the earlier releases. (c) Release of matching matching State share by the States for the earlier year's release made by the Centre. (d) Receipt of Quarterly Progress Reports from the States/UTs. e) Release of the central funds to the eligible States/UTs. f) Providing and releasing matching state share by the States/UTs for this year's release. a) Non-receipt of counterpart funding from States, which is 1/3rd of the outlay. (Based on 75:25 funding pattern between Centre : State) b) Non-identification or delay in identification of genuine beneficiaries for current year. c) Lack of adequate local training centres in States/UTs for providing training to beneficiaries in desired skills/activities/trades. d) Adequate flow of bank credit to swarozgaris. e) Timely release of State share.

21 Sl. No. Name of Scheme / Programme Objective/Outcome Plan Outlay (in Rs. crore) Financial Outlay specific to women (in Rs. crore) (Central share) Quantifiable Deliverables / Physical Outputs specific to women Projected Outcomes Processes / Time Lines Remarks / Risk Factors National Rural Employment Guarantee Act (NREGA) 3 Indira Awaas Yojana To enhance livelihood security of people in rural areas through guaranteed wage employment of at least 100 days per household in a financial year thereby to create assets and infrastructure base in rural area. To address the housing shortage among rural BPL families: i) by providing 150 lakh dwelling units as proposed in the 11th Plan document. Ii) by incentivising and providing financial support to States for providing homestead plots/house sites to the landless poor There is no earmarked outlay for women. However, 1/3rd of the beneficiaries i.e. employment generation for an approx. amount of Rs.5328 cr. under the scheme would benefit women (100% of total Budget Allocation) Demands for employment made by women are to be fully met under the Scheme. The scheme also provides for giving priority to such demands within eligible registered households lakh* houses (100% of total physical target) Outcomes under NREGA would be creation of durable community asset and strengthening of livelihood resource base for rural poor lakh houses Release to districts - April, 08 onwards based on demand received. 1st quarter lakh 2nd quarter 5.70 lakh 3rd quarter 7.12 lakh 4th quarter lakh a) Preparation and approval of works. b) Issue of job cards. c) Administrative arrangements for implementation. 1) Natural calamaties such as floods, cyclones, earthquakes, which hamper the progress of implementation of the programmes. 2) Elections in some parts of the country when the entire State machinery is diverted to those activities. * The calculation is based on the existing unit cost. In case the unit cost is revised and some funds are earmarked for purpose of homestead plots, the targets may be revised to that extent. 15

22 S.No. Name of Scheme / Programme Objective / Outcome DEPARTMENT OF RURAL DEVELOPMENT OUTCOME BUDGET (SC/ST BUDGET) Plan Outlay ( Rs. in crore) Financial Outlay specific to SC/STs ( Rs. in crore) (Central share) Quantifiable Deliverables / Physical Outputs specific to SCs/STs Projected Outcomes Processes / Time Lines Remarks / Risk Factors Swarnjayanti To provide No outlay Out of the total It is expected that Gram sustainable Self specific to swarozgaris to be about 30% to 40% Swarozgar employment to the SC/STs are assisted of assisted Yojana(SGSY) rural poor SCs/STs. made under lakh. 50% of the swarozgaris for the scheme. However, 50% of the assistance to swarozgaris Swarozgaris assisted will be SCs/STs. taking up economic activities would be able to cross the poverty line over a period of 3-4 years. for approx. an amount of Rs.1075 cr. would benefit SC/STs. 16 (a) Allocation of central funds to States/UTs in proportion to rural poverty incidence. (b) Receipt of utilisation certificates from the States/UTs for the earlier releases. (c) Release of matching matching State share by the States for the earlier year's release made by the Centre. (d) Receipt of Quarterly Progress Reports from the States/UTs. e) Release of the central funds to the eligible States/UTs. i) Release of Ist instalment (April-July) ii) Release of 2nd instalment (Sept. onlwards) f) Providing and releasing matching state share by the States/UTs for this year's release. a) Non-receipt of counterpart funding from States, which is 1/3rd of the outlay. (Based on 75:25 funding pattern between Centre : State) b) Non-identification or delay in identification of genuine beneficiaries for current year. c) Lack of adequate local training centres in States/UTs for providing training to beneficiaries in desired skills/activities/trades. d) Adequate flow of bank credit to swarozgaris. e) Timely release of State share.

23 S.No. Name of Scheme / Programme Objective / Outcome Plan Outlay ( Rs. in crore) Financial Quantifiable Outlay Deliverables / specific to Physical SC/STs Outputs specific ( Rs. in crore) to SCs/STs (Central share) Projected Outcomes Processes / Time Lines Remarks / Risk Factors Indira Awaas To address the housing lakh lakh houses* 1st quarter lakh 1) Natural calamaties Yojana shortage among rural BPL (60% of total houses (60% of 2nd quarter 3.42 lakh such as floods, cyclones, families: i) by providing Budget total physical 3rd quarter 4.27 lakh earthquakes, which 150 lakh dwelling units as Allocation) target) 4th quarter 7.69 lakh hamper the progress of proposed in the 11th Plan implementation of the document. Ii) by programmes. incentivising and providing financial support to States 2) Elections in some parts of the country when for providing homestead the entire State machinery plots/house sites to the is diverted to those landless poor. activities. * The calculation is based on the existing uniti cost. In case the unit cost is revised and some funds are earmarked for purpose of homestead plots, the targets may be revised to that extent. 17

24 CHAPTER III REFORM MEASURES & POLICY INITIATIVES I. National Rural Employment Guarantee Act (NREGA) The objective of the NREGA is to provide enhanced livelihood security to the households in rural areas by providing at least 100 days of guaranteed wage employment in a financial year to any household whose adult members are willing to do unskilled manual work. The Act has come into force in 200 notified Districts of the country with effect from 2 nd February, 2006 and additional 130 districts from The Sampoorna Grameen Rozgar Yojana (SGRY) have subsumed into NREGA in these 330 Districts. It has been decided that all the remaining districts of the Country will also be brought in the ambit of the Act from April, The statutory commitment to cover all districts of the Country within five years of the implementation of the Act, has thus been fulfilled. 2 The NREGA is a demand based programme, hence, requirement of funds and employment generation will depend on demand for work. However, the financial outlay (B.E.) under NREGA for is Rs. 16, crore. 3. Since the demand for employment generation is based upon opening works, there has been a major emphasis on preparing a shelf of projects at the village level to be kept ready in advance with a view to ensuring greater transparency in wage employment. Instructions have been issued to States to make arrangements for payment of workers through Banks and Post Office accounts. Major Initiatives 4. For better and effective implementation of the NREGA, major initiative that have been taken or proposed to be taken up are as follows : (i) Evaluation studies have been undertaken by the Ministry through independent research institutions from the very inception of the programme in all the major States so that mid course correction could be effected. These studies have been undertaken on different aspects 18

25 of the programme from field level fidelity to process and legal provisions, establishment of management systems and processes and impact on migration, wages and productivity. All these studies have shown that NREGA has been able to make positive dent in overall quality of life of the rural poor. There has been significant increase of persondays generation, SC/ST share and also women workforce participation ratio per district as compared to erstwhile wage employment programmes. Systematic and process level shortcomings have also been pointed out. It has been shared with respective States for remedial action. (ii) Posting of dedicated key functionaries like Gram Rozgar Sewaks at GP, Programme Officers at block level and Technical persons have been given high priority. (iii)greater transparency in wage disbursement has been introduced by payment through bank/post offices by opening of savings back account: Andhra Pradesh, Karnataka and Jharkhand have started disbursing through bank/post offices. This will be extended to all the States in due course. (iv) Creation of Assets : Amendment to Schedule I, Para I now permits provision of irrigation facility, horticulture plantation and land development facilities on land owned by households belonging to SC and ST or to BPL families or to beneficiaries of land reforms or to the beneficiaries of IAY. (v) Action has been taken to fully operationalise comprehensive MIS developed for online monitoring and management, data transparency and free public access to all information on NREGA. (vi) Knowledge Network: Nreganet is the knowledge sharing initiative introduced by the Ministry to help in lateral transfer of local solutions. (vii)strengthening Monitoring through institutional appraisals: Institutional appraisal is being encouraged through quarterly district appraisals by empaneled institutions. Key parameters will be reviewed to ensure regular, recurrent monitoring of the field process and follow up on issues highlighted in previous visits. 19

26 (viii)greater focus on capacity building of community for Social Audit, training of Vigilance and Monitoring Committees (V&MC) for effective vigilance and accountability. Swarnjayanti Gram Swarozgar Yojana (SGSY) 5. The Swarnjayanti Gram Swarozgar Yojana (SGSY) is a major selfemployment programme for the rural poor under implementation since The SGSY is a holistic programme covering all aspects of selfemployment such as organization of the poor into Self Help Groups (SHG), training, credit, technology infrastructure and marketing. The basic objective of the scheme is to provide assistance to the rural poor through bank credit and government subsidy to acquire an income-generating asset. 6. Assistance to individual Swarozgaris or Self Help Groups is given in the form of subsidy by Government and credit by the Banks. Subsidy under the SGSY is uniform at 30% of the project cost, subject to a maximum of Rs In respect of SCs/STs and disabled persons, the subsidy is 50% of the project cost, subject to a maximum of Rs.10000/-. For groups of Swarozgaris (SHGs), the subsidy is 50% of the cost of scheme, subject to per capita subsidy of Rs.10000/- or Rs lakhs, whichever is less. There is no monetary limit on subsidy for irrigation projects. Subsidy is backended. 7. The rapid growth momentum in the Indian economy has created several high rise sectors like textile, construction, retail, hospitality, automobile and ancillaries etc. wherein there is a huge demand for labour specially at the lower end of skill base. BPL rural youth are unable to capture these opportunities since they are not having the requisite minimal skills. Keeping in view this objective, a special pilot project titled Placement Based Skill Development was initiated in the year 2005 and based on the encouraging results of the pilot project the Ministry of Rural Development is currently implementing 9 placement based skill development projects with a total cost of Rs.115 crore covering 2.33 lakh beneficiaries across the country. Under this scheme so far 21,200 beneficiaries have been trained and have been provided placement. It is proposed to give further thrust to skill development of BPL youths enabling them to earn decent livelihood. 20

27 8. Ministry has created marketing infrastructure at Pragti Maidan, Rajiv Gandhi Handicrafts Bhavan and Dilli Hatt at Pitam Pura in Delhi in order to assist the poor rural BPL Swarozgaris to showcase and market their products. Marketing efforts would be strengthened further. Efforts are being made to universalize Self Help Groups Movement by covering at least one member of each rural poor family. SHG movement is further being strengthened by federating the groups at the village, block, district, State and National Levels. Rural Housing 9. Housing has now been accepted as a basic human right all over the world. India with its huge houseless population needs to make special efforts to eradicate shelterlessness. Since its inception, Indira Awaas Yojana has been successful in addressing this basic need of the poor. Now, with economic progress and growth, it is Government s responsibility to ensure that benefit of growth reaches weaker sections. Enhancing and extending IAY is one area where Government is keen to put in resources as other parameters of Human Development such education, health and economic opportunities are bound to improve if a person is assured of dignified and well sheltered living. 10. The Indira Awaas Yojana is a Centrally Sponsored ongoing programme being implemented throughout the country except Delhi and Chandigarh under which financial assistance is provided to shelterless rural BPL households for construction of their dwelling units. The funds are shared by the Centre and the States in the ratio of 75:25. However, in the case of Union Territories, 100% assistance is provided by the Centre. 11. In order to impart transparency in the selection process, all the State Governments have been advised to prepare Permanent IAY Waitlists based on the results of the BPL Census Such a list is also to be displayed at a prominent place in every Gram Panchayat. 12. The progress under the scheme is monitored both online, through data entered by the DRDAs every month and also through monthly progress reports received as hard copies from the State Governments. 13. The IAY guidelines have been revised in December, 2006 to make a provision under which additional Rs.1200/-, over and above the unit assistance of Rs.25,000/- and Rs.27,000/- as the case may be, can be 21

28 provided to an IAY beneficiary out of Total Sanitation Compaign(TSC) funds in case he or she constructs a sanitary latrine along with the IAY house. 14. A draft National Rural Housing and Habitat Policy has been recently formulated and circulated to all the stakeholders for their comments. Pradhan Mantri Gram Sadak Yojana 15. Pradhan Mantri Gram Sadak Yojana (PMGSY) was launched on 25 th December 2000 as a fully funded Centrally Sponsored Scheme to provide all weather road connectivity in rural areas of the country. The programme envisages connecting all habitations with a population of 500 persons and above in the plain areas and 250 persons and above in hill States, the tribal and the desert areas. 16. About 1.79 lakh Unconnected Habitations are eligible for coverage under the programme. This involves construction of about 3.71 lakh km. of roads for New Connectivity and 3.68 lakh km. under upgradation. The total requirement of funds was initially estimated at Rs.60,000 crore. Based on the Core Network survey conducted after launching the programme the cost of programme has been revised to Rs. 1,32,000 crore. Bharat Nirman 17. The President of India, in his address to Parliament on 25 th February, 2005, announced a major business plan for rebuilding rural India called Bharat Nirman. The Finance Minister, in his Budget Speech of 28 th February, 2005, identified Rural Roads as one of the six components of Bharat Nirman and has set a goal to provide connectivity to all habitations with a population of 1000 persons and above (500 persons and above in the case of hilly or tribal areas) with an all-weather road by A total of 66,802 habitations are proposed to be provided new connectivity under Bharat Nirman. This would involve construction of 1,46,185 Kms of rural roads. In addition to new connectivity, Bharat Nirman envisages upgradation/renewal of 1,94,130 Kms of existing rural roads. This comprises 60% upgradation and 40% renewal of surface coat. So far upto December, 2007, habitations have been connected by constructing km. rural roads. In addition, km. existing rural roads have been upgraded. Projects for connecting habitations are in different stages of implementation. 22

29 Measures taken to ensure quality and transparency Three tier quality control mechanism 18. For ensuring high level of quality in works, PMGSY programme guidelines have the provision for three tier Quality Control Mechanism. The first two tiers of the Quality Control Structure are overseen by the State Quality Coordinators, appointed by the State Governments. The first tier of quality control mechanism is in-house quality control at the level of executing agencies. The field laboratories are established by the Contractors and mandatory tests on the quality of material and workmanship are conducted under the supervision of Programme Implementation Units (PIUs). Quality Control Handbooks have been prescribed and test records are maintained by the PIUs in the prescribed Quality Control registers. The second tier provides for quality monitoring by the State Governments through independent State Quality Monitors (SQMs). SQMs are deployed to ensure that that quality issues are properly being attended to at the first tier. The third tier of this arrangement consists of quality monitoring of works through random inspection by independent National Quality Monitors (NQMs). Observations of National Quality Monitors are handed over to the PIUs immediately after inspection for taking appropriate action. The action taken reports (ATRs) are prepared and sent to the NRRDA (National Rural Road Development Agency) through State Quality Coordinator. If defects in the work are rectified and the action of rectification is verified by independent quality monitors in the subsequent inspections, the Unsatisfactory grading of the work is improved to Satisfactory grading. NRRDA monitors the submission of ATRs and States are appraised of the status of ATRs. Standard Bidding Document 19. Standard Bidding Document (SBD) has been prescribed to facilitate open tender and award of works under PMGSY. Works are awarded through open tender and as per the criteria given in the SBD. Evaluation and acceptance criteria have been incorporated in the bid document in order to have greater transparency in award of works. On-line monitoring 20. A Web-based on-line monitoring system (web address and has been developed to facilitate timely monitoring of works under PMGSY. Monitoring modules 23

30 include Connectivity Status, Procurement Status, Physical and Financial progress, Account and Quality monitoring etc. The entire database has been placed in the Citizens domain. Citizen information boards 21. Citizen information boards are displayed in local language at prominent locations in the benefited habitations indicating the volume of materials used in each layer of the pavement. Inspection of PMGSY works by public representatives 22. State Governments have been advised to arrange joint inspection of ongoing as well as completed works under PMGSY by Hon ble MPs, Hon ble MLAs and functionaries of Panchayati Raj Institutions. New Initiatives :- 23. The Rural Road Programme has established several new standards in its endeavour to construct roads of high quality. The new initiatives taken as part of the PMGSY programme include the following:- (i) Implementation of concept of Core Network - The concept of Core Network has been operationalised in order to focus on the set of roads which are considered essential to provide connectivity to all habitations of the desired size. Action has been initiated to develop GIS-based applications to further enhance the utility of the Core Network. (ii) Use of new technology and materials - R&D efforts like use of cement concrete, modified bitumen, fly ash as well as soil stabilization techniques and other new methodologies modified to suit rural roads are one of the thrust areas of the Programme. (iii) Outsourcing of technical inputs - In order to manage the programme at the national level and yet ensure that adequate technical inputs are locally available for planning and execution of the rural roads programme, an elaborate structure consisting of Principal Technical Agencies (national level technical institutions) as well as State Technical Agencies (regional level technical institutions) has been successfully brought into the framework of the programme planning and execution through a Government academia partnership. 24