Rural Budget

AMITY SCHOOL OF RURAL MANAGEMENT
1. Introduction
The soul of India lives in its villages, said Gandhi in the beginning of the 20th Century. My firstencounters with Indian village were from the distance of passing trains, looking out of the windows at the endless fields and farmers at work. At any given point, there was always some form of life around a human, a cow, a dog. The picture represented an idyllic view, one reinforced by the portrayal of the village in Indian cinema. The village was about big farmhouses and bigger families, ample time on hand with none of the chaos of the cities, a simple life that represented the India in which Gandhi believed. I could not have been more wrong. 1.1. Rural India "India lives in its villages" - Mahatma Gandhi. Literally and from social, economic and political perspectives this statement is valid even today. Around 70% of the state population is living in rural areas. People living in rural areas should have the same quality of life as is enjoyed by people living in sub-urban and urban areas. Further there are cascading effects of poverty, unemployment, poor and inadequate infrastructure in rural areas on urban centres causing slums and consequential social and economic tensions manifesting in economic deprivation and urban poverty. Hence rural development which is concerned with economic growth and social justice, improvement in the living standard of the rural people by providing basic adequate and quality social services and minimum basic needs becomes essential. The present strategy of rural development mainly focuses on poverty alleviation, better livelihood opportunities, provision of basic amenities and infrastructure facilities through innovative programs of wage and self-employment. The above goals will be achieved by various program support being implemented creating partnership with communities, non-governmental organizations, community based organizations institutions, PRIs and individual establishments, while the department of rural development will provide logistic support both on technical and administrative side for program implementation. Other aspects that will ultimately lead to transformation of rural life are also being emphasized simultaneously. 1.2. Changing Face of Rural India Forget those images of ravaged villagers, kids with distended bellies and ragged clothes and a future as grim as the cracked, sun-baked earth. Islands of poverty still exist but most of rural India is transformed beyond imagination thanks to a host of factors which has put unprecedented wealth into the hands of farmers across the country and turned it into a huge consumer market.
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Latest statistics show that agricultural growth and rural income has largely been unaffected by the economic slowdown, this, despite the fact that the contribution of agriculture to total rural income has actually come down. Instead, we have a growing service industry and alternate revenue channels from horticulture, poultry, fisheries and other activities which are less rain-dependant and were virtually nonexistent a decade ago. India's 6,38,000 villages, which harbour 72.2 per cent of the population, once the albatross around its neck, are now the signpost to its future. Call it a new adventurism or entrepreneurship, but most farmers have gained from a switch to new crops and technology, like Sunil Katkade from Naygaon, a small village in Nashik district. Initially, he grew rain-fed crops like bajra and wheat which was barely enough to feed his family. Four years ago, he installed a micro-sprinkler irrigation system and switched to vegetable farming. He also tied up with an exporter who guarantees purchase of his output at a preset price. Today, he earns Rs. 6 lakh a year. Rising food prices may be pinching the pockets of the urban consumers, but it has brought new affluence to farmers who have nearly trebled their income in recent years, along with aspirations. Katkade's new home resembles any middle-class household in urban India and his daughter Priyanka is studying in Mumbai. Says the proud father: "I want her to go to an engineering college." Thavamurugan from Valliammalpuram near Theni, close to Madurai, is another farmer who benefited from a change of crop. He used to grow tea, coffee, pepper or sugarcane before he switched to grapes. Theni's climate allows grapes to grow all year round and now some 10,000 tonnes of Thomson seedless grapes are produced annually. "Theni is almost the world capital for Thomson grapes. Our farmers are competing in the world market," says Thavamurugan. Though he lives in a small village near Theni, his huge farmhouse boasts of a high-end computer, a treadmill, and a Toyota Innova. New Innovations: Apart from crop changes, innovative farming techniques are boosting productivity, encouraging new entrepreneurship and having a huge social impact. Yalala Srinivas, 32, from Murthad in Telangana, owns a four-acre farm but now sells drip irrigation systems and micro-irrigation techniques to nearby farmers. His income has grown; he has bought an Alto and now wants to complete his studies.
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2. BUDGET
A budget is a description of a financial plan. It is a list of estimates of revenues to and expenditures by an agent for a stated period of time. Normally a budget describes a period in the future not the past. The Budget of India is prepared by the Budget Division of Department of Economic Affairs of the Ministry of Finance annually. This includes supplementary excess grants and when a proclamation by the President as to failure of Constitutional machinery is in operation in relation to a State or a Union Territory, preparation of the Budget of such State. The railway budget is presented separately. 2.1. Union Budget of India The Union Budget of India, referred to as the annual Financial Statement in Article 112 of the Constitution of India, is the annual budget of the Republic of India, presented each year on the last working day of February by the Finance Minister of India in Parliament. The budget has to be passed by the House before it can come into effect on April 1, the start of India's financial year. Former Finance Minister Morarji Desai presented the budget eight times, the most by any. 2.2. Types of Budget Corporate Budget Government Budget Business Set Up Budget Partial Budgeting Capital Budgeting Performance Based Budgeting Zero Based Budgeting Incremental Budgeting
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Government Budgets: are the summarized versions of the anticipated revenues and expenses of a government. Formulated by the executive and passed by the legislature as a legal document, Government Budgets focus on the distribution of wealth for economic as well as political and social purposes. Some areas covered by the budget include: Exemption from personal income tax Superannuating schemes Estimating the status of the national exchequer, both during the last and coming fiscal years Enhancing sectoral productivities Note:- This study shown the Budgets for Rural Development which is come under Government budget, therefore, above the Government budget explained clearly.
1. Five year plans of India

The economy of India is based in part on planning through its five-year plans, which are developed, executed and monitored by the Planning Commission. The tenth plan completed its term in March 2007 and the eleventh plan is currently underway. Prior to the fourth plan, the allocation of state resources was based on schematic patterns rather than a transparent and objective mechanism, which led to the adoption of the Gadgil formula in 1969. Revised versions of the formula have been used since then to determine the allocation of central assistance for state plans. 3.1. First Five-Year Plan (1951-56) The first Indian Prime Minister, Jawaharlal Nehru presented the first five-year plan to the Parliament of India on 8 December 1951. The plan addressed, mainly, the agrarian sector, including investments in dams and irrigation. The agricultural sector was hit hardest by the partition of India and needed urgent attention. The total planned budget of 206.8 billion (US$23.6 billion in the 1950 exchange rate) was allocated to seven broad areas: irrigation and energy (27.2 percent), agriculture and community development (17.4 percent), transport and communications (24 percent), industry (8.4 percent),social services (16.64 percent), land rehabilitation (4.1 percent), and for other sectors and services (2.5 percent). The most important feature of this phase was active role of state in all economic sectors. Such a role was justified at that time because immediately after independence, India was facing basic problemsdeficiency of capital and low capacity to save. The target growth rate was 2.1% annual gross domestic product (GDP) growth; the achieved growth rate was 3.6%. The net domestic product went up by 15%. The monsoon was good and there were relatively high crop yields, boosting exchange reserves and the per capita income, which increased by 8%. National income increased more than the per capita income due to
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rapid population growth. Many irrigation projects were initiated during this period, including the Bhakra Dam and Hirakud Dam. The World Health Organization, with the Indian government, addressed children's health and reduced infant mortality, indirectly contributing to population growth. At the end of the plan period in 1956, five Indian Institutes of Technology (IITs) were started as major technical institutions. The University Grant Commission was set up to take care of funding and take measures to strengthen the higher education in the country. Contracts were signed to start five steel plants, which came into existence in the middle of the second five-year plan.
3.2. Second Five-Year Plan(1956-61) The second five-year plan focused on industry, especially heavy industry. Unlike the First plan, which focused mainly on agriculture, domestic production of industrial products was encouraged in the Second plan, particularly in the development of the public sector. The plan followed the Mahalanobis model, an economic development model developed by the Indian statistician Prasanta Chandra Mahalanobis in 1953. The plan attempted to determine the optimal allocation of investment between productive sectors in order to maximise long-run economic growth . It used the prevalent state of art techniques of operations research and optimization as well as the novel applications of statistical models developed at the Indian Statiatical Institute. The plan assumed a closed economy in which the main trading activity would be centered on importing capital goods. Hydroelectric power projects and five steel mills at Bhilai, Durgapur, and Rourkela were established. Coal production was increased. More railway lines were added in the north east. The Atomic Energy Commission was formed in 1948 with Homi J. Bhabha as the first chairman. The Tata Institute of Fundamental Research was established as a research institute. In 1957 a talent search and scholarship program was begun to find talented young students to train for work in nuclear power. The total amount allocated under the second five year plan in India was Rs. 4,800 crore. This amount was allocated among various sectors: Mining and industry Community and agriculture development Power and irrigation Social services Communications and transport Miscellaneous Target Growth: 4.5% Actual Growth: 4.27%
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3.3. Third Five-Year Plan (1961-66) The third plan stressed on agriculture and improving production of wheat, but the brief SinoIndian War of 1962 exposed weaknesses in the economy and shifted the focus towards the Defence industry. In 1965-1966, India fought a war with Pakistan. The war led to inflation and the priority was shifted to price stabilisation. The construction of dams continued. Many cement and fertilizer plants were also built. Punjab began producing an abundance of wheat. Many primary schools were started in rural areas. In an effort to bring democracy to the grassroot level, Panchayat elections were started and the states were given more development responsibilities. State electricity boards and state secondary education boards were formed. States were made responsible for secondary and higher education. State road transportation corporations were formed and local road building became a state responsibility. The target growth rate of GDP(gross domestic product)was 5.6 percent.The achieved growth rate was 2.84 percent
3.4. Fourth Five-Year Plan (1969-74) At this time Indira Gandhi was the Prime Minister. The Indira Gandhi government nationalised 14 major Indian banks and the Green Revolution in India advanced agriculture. In addition, the situation inEast Pakistan (now Bangladesh) was becoming dire as the Indo-Pakistani War of 1971 and Bangladesh Liberation War took place. Funds earmarked for the industrial development had to be diverted for the war effort. India also performed the Smiling Buddha underground nuclear test in 1974, partially in response to the United Statesdeployment of the Seventh Fleet in the Bay of Bengal. The fleet had been deployed to warn India against attacking West Pakistan and extending the war. Target Growth: 5.7% Actual Growth: 3.30% 3.5. Fifth Five-Year Plan (1974-79) Stress was laid on employment, poverty alleviation, and justice. The plan also focused on selfreliance in agricultural production and defense. In 1978 the newly elected Morarji Desai government rejected the plan. Electricity Supply Act was enacted in 1975, which enabled the Central Government to enter into power generation and transmission.
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The Indian national highway system was introduced for the first time and many roads were widened to accommodate the increasing traffic. Tourism also expanded. Target Growth: 4.4% Actual Growth: 3.8 3.6. Sixth Five-Year Plan (1980-85) The sixth plan also marked the beginning of economic liberalization. Price controls were eliminated and ration shops were closed. This led to an increase in food prices and an increase in the cost of living. This was the end of Nehruvian Plan and Rajiv Gandhi was prime minister during this period. Family planning was also expanded in order to prevent overpopulation. In contrast to China's strict and binding one-child policy, Indian policy did not rely on the threat of force. More prosperous areas of India adopted family planning more rapidly than less prosperous areas, which continued to have a high birth rate. Target Growth: 5.2% Actual Growth: 5.66%
3.7. Seventh Five-Year Plan (1985-90) The Seventh Plan marked the comeback of the Congress Party to power. The plan laid stress on improving the productivity level of industries by upgrading of technology. The main objectives of the 7th five year plans were to establish growth in areas of increasing economic productivity, production of food grains, and generating employment opportunities. As an outcome of the sixth five year plan, there had been steady growth in agriculture, control on rate of Inflation, and favourable balance of payments which had provided a strong base for the seventh five Year plan to build on the need for further economic growth. The 7th Plan had strived towards socialism and energy production at large. The thrust areas of the 7th Five year plan have been enlisted below: Social Justice Removal of oppression of the weak
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Using modern technology Agricultural development Anti-poverty programs Full supply of food, clothing, and shelter Increasing productivity of small and large scale farmers Making India an Independent Economy Based on a 15-year period of striving towards steady growth, the 7th Plan was focused on achieving the pre-requisites of self-sustaining growth by the year 2000. The Plan expected a growth in labour force of 39 million people and employment was expected to grow at the rate of 4 percent per year. Some of the expected outcomes of the Seventh Five Year Plan India are given
Balance of Payments (estimates): Export - 33,000 crore (US$7.4 billion), Imports - (-) 54,000 crore (US$12 billion), Trade Balance - (-) 21,000 crore (US$4.7 billion)
Merchandise exports (estimates): 60,653 crore (US$13.5 billion) Merchandise imports (estimates): 95,437 crore (US$21.3 billion) Projections for Balance of Payments: Export - 60,700 crore (US$13.5 billion), Imports (-) 95,400 crore (US$21.3 billion), Trade Balance- (-) 34,700 crore (US$7.7 billion)
Seventh Five Year Plan India strove to bring about a self-sustained economy in the country with valuable contributions from voluntary agencies and the general populace. Target Growth: 5.0% Actual Growth: 6.01%
3.8. Eighth Five-Year Plan (1992-97) 1989-91 was a period of economic instability in India and hence no five year plan was implemented. Between 1990 and 1992, there were only Annual Plans. In 1991, India faced a crisis in Foreign Exchange (Forex) reserves, left with reserves of only about US$1 billion. Thus,
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under pressure, the country took the risk of reforming the socialist economy. P.V. Narasimha Rao)was the twelfth Prime Minister of the Republic of India and head of Congress Party, and led one of the most important administrations in India's modern history overseeing a major economic transformation and several incidents affecting national security. At that time Dr. Manmohan Singh (currently, Prime Minister of India) launched India's free market reforms that brought the nearly bankrupt nation back from the edge. It was the beginning of privatisation and liberalisation in India. Modernization of industries was a major highlight of the Eighth Plan. Under this plan, the gradual opening of the Indian economy was undertaken to correct the burgeoning deficit and foreign debt. Meanwhile India became a member of the World Trade Organization on 1 January 1995.This plan can be termed as Rao and Manmohan model of Economic development. The major objectives included, controlling population growth, poverty reduction, employment generation, strengthening the infrastructure, Institutional building,tourism management, Human Resource development, Involvement of Panchayat raj, Nagar Palikas, N.G.O'S and Decentralisation and people's participation. Energy was given priority with 26.6% of the outlay. An average annual growth rate of 6.78% against the target 5.6% was achieved. To achieve the target of an average of 5.6% per annum, investment of 23.2% of the gross domestic product was required. The incremental capital ratio is 4.1.The saving for invetsment was to come from domestic sources and foreign sources,with the rate of domestic saving at 21.6% of gross domestic production and of foreign saving at 1.6% of gross domestic production.
1.
Review of Ninth Plan Performance

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An outlay of Rs.2000 crores was provided for rural development sector during Ninth Plan period. The Budgetary support and allocation from 1997-98 to 2001-02 for various schemes/programs was Rs.2498.30 crores. The year-wise outlay and expenditure are indicated below:
During the Ninth Five Year Plan, under IRDP, income generating assets were provided to 3.235 lakh families through subsidy and credit. Under TRYSEM 28,860 rural youths in the age group of 18 to 35 from the families of below poverty line were provided with training enabling them to take up income generating activities. Under DWCRA 4,958 women groups covering 12.40 lakh beneficiaries were formed and they were provided with revolving fund, credit and subsidy so as to enable them to participate in social developmental activities towards achieving economic self reliance. During 1999-2000 the IRDP, TRYSEM, DWCRA were merged to form a new self-employment program called Swarna Jayanthi Gram Swarojgar Yojana(SGSY) with effect from 1-4-99. Under
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SGSY 56,117 Women Self Help Groups(SHGs) were formed from the families of below poverty line. Out of this, 10,068 SHGs have been provided with economic assistance under various trades enabling them to take up income generating activities. Under SGSY 31,312 individual beneficiaries have also been provided with economic assistance. Man-days generated and community assets created under centrally sponsored schemes during 9th Five-Year Plan.
The total Man-days generated under employment oriented schemes like JRY/JGSY and EAS work out to 2393.33 lakhs. These schemes in addition to the creation of infrastructural facilities such as roads, schools, buildings and improvement of tanks etc provided employment and income opportunities to the rural poor. Regarding provision of housing facilities 2.08 lakh new houses were constructed and 41,239 Kachcha houses upgraded under IAY, 6880 new houses were constructed under PMGY-rural shelter scheme for benefit of rural poor living below poverty line. Under credit cum subsidy 5577 houses were constructed to benefit the people above poverty line. Access to Pucca dwelling provides basic housing as well as better environment for the beneficiaries and raises the social status of the member of the household. Under Jeeven Dhara Irrigation Well scheme totally 9588 beneficiaries were assisted to dig irrigation wells during 1997-99.
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2. Review of Tenth Five-Year Plan

The Schemes/Programs implemented during the 10th Plan Period: A- Centrally sponsored schemes: 5.1. Poverty Alleviation Programmes Swarnajayanthi Gram Swarozgar Yojana (SGSY) The main objective of the program is to bring the existing poor families above the poverty line. Among the rural poor special emphasis will be given for the welfare of SC/STs women and disabled. The program lays emphasis on organization of poor into SHGs and their capacity building. SGSY is a credit cum subsidy program with the involvement of banking and financial institutions. The expenditure under SGSY is shared by the centre and the states in the ratio of 75:25. Subsidy will be provided at 30% of the project cost subject to a max of Rs.7500 and 50% for SC/ST subject to a max of Rs.10,000. For groups, the subsidy is 50% subject to a ceiling of Rs.1.25 lakhs. During the Tenth-Five Year plan under SGSY it has been achieved: 1. Formed 1.25 lakh SHGs, benefitted 25 lakh women in rural areas. 2. Imparted EDP and vocational training to about 5 lakh rural women started micro enterprise. 3. Trained 3 lakh unemployed youth. 4. Constructed 1 SHG center per Panchayat to conduct meeting. 5. Established District Information Service Center in each district to provide backward and forward linkages in marketing. b. Sampoorna Grameen Rozgar Yojana(SGRY) This is a merger of JGSY and EAS scheme and was launched on 15th August 2001. The main objective of the new program is to provide additional wage employment in the rural areas as food security by creation of durable community social and economic assets and infrastructural
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development in rural areas. Towards this end the SGRY envisages distribution of food grains at the rate of 5 Kg per man-day to the workers as part wages. While the cash components will be shared by the centre and states in the ratio of 75:25, the Centre govt. will supply the food grains free of cost to the states. This scheme implemented in two streams. The first stream will be implemented at the District and Panchayat Union levels in the ratio of 40:60. The second stream will be implemented at the Village Panchayat level.
5.2. Rural Housing

a. Indira Awaas Yojana (IAY)
IAY is for the people who live below the poverty line, under this: 1. Construction of new houses. 2. Upgradation of un-serviceable kacha houses. 3. PMGY- to supplement the effort in rural housing. 4. Credit cum Subsidy scheme for rural household- having annual income less than or equal to 32,000. 5. It aims at helping BPL rural households belonging to SC/STs, free bonded liberals. 6. Widows of next of kin of defense personnel, ex-service men and retired members of the Para-Military forces. 3% of funds are reserved for the benefit of disabled poor below the poverty line in rural areas. The assistants ceiling for each house in plain area is fixed at Rs.20,000 and for hill difficult area Rs.22,000. 80% of the IAY funds is marked for constructing new houses and 20% is towards up gradation of un-serviceable Kacha houses at the rate of Rs.10,000 per unit. The funds under IAY are shared between Centre and States in the ratio 75:25. In Tenth-Five Year Plan total 1,54,090 new houses and upgraded 78,970 un-serviceable Kacha houses into Pucca houses.
a. Credit cum Subsidy scheme
The credit cum subsidy scheme has been conceived for rural households having an annual income upto Rs.32000. Subsidy upto Rs.10,000 and loan up-to Rs.40,000 from commercial and cooperative banks is provided to eligible households for construction of houses. b. Innovative Stream for Rural Household and Habitat development scheme
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The scheme intends to popularize low cost technology and usage of locally available materials in construction of buildings in rural areas. Innovative technology adopted for the rural house type design in the scheme are: 1. Rat-trap bond brick work, hollow blocks and soil stabilized cement motor for construction of walla. 2. Fillers slab roofing using mangalore tiles as filler material for roofing. 3. Ferro cement /pre caste RCC doors, windows, frames and shelter. 4. Brick Baf with the plastering for floring. facilities such as drinking water, drainage, street formation etc are provided by dovetary funds under other ongoing schemes in the habitations developed under this scheme. This scheme is fully funded by govt. of India. a. Pradhan Mantri Gramodaya Yojana(PMGY) This scheme has been introduced by the govt. of India under additional central assistance for providing shelter in the rural areas to supplement the efforts in the sphere of rural housing considering the magnitude of the task. The guidelines of IAY are applied for this scheme also. 60% of the total allocation is ear-marked for SC/ST beneficiaries. In 10th plan 34,475 shelters constructed with an allocation of Rs.111.14 crore. 5.3. Pradhan Mantri Gram Sadak Yojana(PMGSY) The PMGSY is a govt. of India scheme introduced in the year 2000-01 with the objective of programming road connectivity through good all weather roads to all unconnected rural inhabitation having population above 1000 by 2003 and all unconnected habitation having population of 500 and above by the end of 10 th plan(2007). Under this program the approved works are grouped into packages costing more than Rs.1 crore but less than Rs. 5 crore and executed through tender system. The scheme is fully funded by the govt. of India. 5.4.National Project on Biogas Development Biogas development program aims to promote an eco-friendly, non-conventional energy source with multiple benefit. The role of biogas as a major source of renewable energy has been recognized by the govt. of India by including this scheme as an item in the 20 point program. This is a centrally sponsored program with a subsidy component of Rs.1800 for general category and Rs.2300 for scheduled category and for Rs.3500 for hilly areas. An amount of Rs.500 is provided in addition for installation and maintenance of the plant to the Turnkey agent. 10,000 biogas plant constructed in 10th plan. The scheme is fully funded by the govt. of India.
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6.0. 11th Five Year Plan of India (2007 - 2012)

On the eve of the 11th Plan, our economy is in a much stronger position than it was a few Years ago. After slowing down to an average growth rate of about 5.5% in the 9th Plan period (1997 98 to 2001 - 02), it has accelerated significantly in recent Years. The average growth rate in the last four Years of 10th Plan period (2003 - 04 to 2006 - 07) is likely to be a little over 8%, making the growth rate 7.2% for the entire 10th Plan period. Though, this is below the 10th Plan target of 8%, it is the highest growth rate achieved in any plan period. This performance reflects the strength of our economy and the dynamism of the private sector in many areas. Yet, it is also true that economic growth has failed to be sufficiently inclusive, particularly after the mid - 1990s. Agriculture lost its growth momentum from that point on and subsequently entered a near crisis situation. Jobs in the organized sector have not increased despite faster growth. The percentage of our population below the poverty line is declining but only at a modest pace. Malnutrition levels also appear to be declining, but the magnitude of the problem continues to be very high. Far too many people still lack access to basic services such as health, education, clean drinking water and sanitation facilities without which they cannot claim their share in the benefits of growth.
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Women have increased their participation in the labor force as individuals, but continue to face discrimination and are subject to increasing violence, one stark example of which is the declining child sex ratio. 6.1. India's Vision for the 11th Five Year Plan: The 11th Plan provides an opportunity to restructure policies to achieve a new vision based on faster, more broad - based and inclusive growth. It is designed to reduce poverty and focus on bridging the various divides that continue to fragment our society. The 11th Plan must aim at putting the economy on a sustainable growth trajectory with a growth rate of approximately 10 per cent by the end of the Plan period. It will create productive employment at a faster pace than before, and target robust agriculture growth at 4% per Year. It must seek to reduce disparities across regions and communities by ensuring access to basic physical infrastructure as well as health and education services to all. It must recognize gender as a cross - cutting theme across all sectors and commit to respect and promote the rights of the common person. Rapid growth is an essential part of our strategy for two reasons. Firstly, it is only in a rapidly growing economy that we can expect to sufficiently raise the incomes of the mass of our population to bring about a general improvement in living conditions. Secondly, rapid growth is necessary to generate the resources needed to provide basic services to all. Work done within the Planning Commission and elsewhere suggests that the economy can accelerate from 8 per cent per Year to an average of around 9% over the 11th Plan period, provided appropriate policies are put in place. With population growing at 1.5% per Year, 9% growth in GDP would double the real per capita income in 10 Years. This must be combined with policies that will ensure that this per capita income growth is broad based, benefiting all sections of the population, especially those who have thus far remained deprived. A key element of the strategy for inclusive growth must be an all out effort to provide the mass of our people the access to basic facilities such as health, education, clean drinking water etc. While in the short run these essential public services impact directly on welfare, in the longer run they determine economic opportunities for the future. The private sector, including farming, micro, small and medium enterprises (MSMEs) and the corporate sector, has a critical role to play in achieving the objective of faster and more inclusive growth. This sector accounts for 76% of the total investment in the economy and an even larger share in employment and output. MSMEs, in particular, have a vital role in expanding production in a regionally balanced manner and generating widely dispersed off - farm employment. Our policies must aim at creating an environment in which entrepreneurship can flourish at all levels, not just at the top. All this is feasible but it is by no means an easy task. Converting potential into reality is a formidable Endeavour and will not be achieved if we simply continue on a business - as - usual
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basis. There is need for both the Centre and the States to be self critical and evaluate programmes and policies to see what is working and what is not.
6.2 Macroeconomic Indicators for the 11th Five Year Plan SI. No. 1. Macroeconomic Indicators Growth rate of GDP (%); of which; a. Agriculture b. Industry c. Services 2. Investment rate (% of GDP) a. Public b. Private 3. 10th Plan (Actual)* 11th Plan (Average) 7.2 1.7 8.3 9.0 27.8 6.7 21.1 9.0 4.1 10.5 9.9 35.1 10.2 24.9 32.3 22.0 6.1 3.0 1.2 -2.8 -0.2 -6.0
Domestic Savings rate (% of GDP) of 28.2 which a. Household b. Corporate c. PSEs d. Government 22.8 4.5 4.2 -3.2 0.2 -8.0
4. 5. 6. *
Current account balance (% of GDP) Government Fiscal balance (% of GDP)
Government revenue balance (% of GDP) -4.4
1. GDP growth rate is actual up to 2005 - 06 and as estimated by the EAC to PM for 2006 - 07. Savings rate, investment rate and CAB are actual up to 2004 - 05.
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2. Government Fiscal Balance and Revenue Balance are Based on Actuals (3 Years for Centre and 2 Years for states) and for remaining Years RE / BE / Projected.
6.3. Monitorable Socio - Economic Targets of the 11th Plan Income & Poverty in India : Accelerate growth rate of GDP from 8% to 10% and then maintain at 10% in the 12th Plan in order to double per capita income by 2016 - 17. Increase agricultural GDP growth rate to 4% per Year to ensure a broader spread of benefits Create 70 million new work opportunities. Reduce educated unemployment to below 5%. Raise real wage rate of unskilled workers by 20 percent. Reduce the headcount ratio of consumption poverty by 10 percentage points.
11th Five Year Plan Education Reduce dropout rates of children from elementary school from 52.2% in 2003 - 04 to 20% by 2011 - 12. Develop minimum standards of educational attainment in elementary school, and by regular testing monitor effectiveness of education to ensure quality. Increase literacy rate for persons of age 7 Years or more to 85%. Lower gender gap in literacy to 10 percentage points. Increase the percentage of each cohort going t6 higher education from the present 10% to 15% by the end of the 11th Plan. Reduce infant mortality rate (IMR) to 28 and maternal mortality ratio (MMR) to 1 per 1000 live births. Reduce Total Fertility Rate to 2.1.
11th Five Year Plan Health
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Provide clean drinking water for all by 2009 and ensure that there are no slip - backs by the end of the 11th Plan. Reduce malnutrition among children of age group 0 - 3 to half its present level. Reduce anemia among women and girls by 50% by the end of the 11th Plan. Raise the sex ratio for age group 0 - 6 to 935 by 2011 - 12 and to 950 by 2016 - 17. Ensure that at least 33 percent of the direct and indirect beneficiaries of all government schemes are Women and Girl Children. Ensure that all children enjoy a safe childhood, without any compulsion to work.
Women and Children
11th Five Year Plan Infrastructure : Ensure Electricity connection to all villages and BPL households by 2009 and round - the - clock power by the end of the Plan. Ensure all - weather road connection to all habitation with population 1000 and above (500 in hilly and tribal areas) by 2009, and ensure coverage of all significant habitation by 2015. Connect every village by telephone by November 2007 and provide broadband connectivity to all villages by 2012. Provide homestead sites to all by 2012 and step up the pace of house construction for rural poor to cover all the poor by 2016 - 17. Increase forest and tree cover by 5 percentage points. Attain WHO standards of air quality in all major cities by 2011 - 12. Treat all urban waste water by 2011 - 12 to clean river waters. Increase energy efficiency by 20 percentage points by 2016 - 17. It was developed in the context of four important dimensions: Quality of life, generation of productive employment, regional balance and self-reliance.
Environment in India
Growth During Five Year Plans
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6.4. Guaranteed Wage Employment Mahatma Gandhi National Rural Employment Guarantee Act The objective of the MGNREGS is to enhance the livelihood security of the people in rural areas by guaranteeing 100 days of wage employment in a financial year to a rural household whose members volunteer to do unskilled manual work. Funding The central Government and State Government bear the cost in the ratio of 75:25 The allocation for the Eleventh Plan is tentatively provided at Rs.100000 crore. 6.5. Self-Employment-Sawarnjayanti Gram Swarozgar Yojana (SGSY) The SGSY is being implemented since 1999. Close to 2.6 million SHGs have been formed under the SGSY since its inception. Of these SHGs 16 lakh have already crossed the Grade-1 stage. About 8 lakh SHGs have passed the Grade-II stage and of them, slightly less than five lakh SHGs have taken up economic activities. About 60% of the Grade-II SHGs have taken up economic activities, the balance number waiting for financial assistance. Of the nearly Rs.25000 crore credit flow targeted under the programme, less than 50% has been achieved. 6.6. Rural Housing for the Houseless The National Housing & Habitat Policy, 1998 stated that the ultimate goal of the policy was to ensure Shelter to all and better quality of life for all citizen. In the present form, IAY is one of the very popular schemes of the MoRD and has caught the imagination of the rural people.
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The funds for the IAY scheme are shared between the Central and the State Government in the ratio of 75:25. The Central Budget is allocated to the States based on a 75% weightage to housing shortage and 25% weightage to poverty ratio.
7.0. Analytical part of Rural Budgets 2007-12

7.1. Introduction:Ministry of Rural Development release funds under three major headings:1- Department of Rural Development 2- Department of Land Resources 3- Department of Drinking Water Supply and Sanitation
Department of Rural Development divides funds into several schemes according to Budget Estimate by Department. Schemes are as follows:PURA Bharat Nirman NSAP CAPART MGNREGA PMGSY IAY DIKSHA SGSY NRLM SECC-2011
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IAP Districts
Department of Land Resource divides funds into four major schemes are as follows:Integrated Watershed Management Programme National Land Records Modernization programme Bio-fuel National Rehabilitation & Resettlement Policy Department of Drinking Water Supply & Sanitation divides funds into two major program are as follows:-
Rural Water Supply Programme Rural Sanitation Programme
7.2. Budget 2007-08
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7.3. Budget 2008-09
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7.4. Budget 2009-10
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7.5. Budget 2010-11
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7.6. Budget 2011-12
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8.0. Welcome Budget 2011-12

Rural Development Minister Welcomes Budget 2011-12 Rs. 87,800 Crore Allocation for Ministry of Rural Development Bharat Nirman Allocation Increased by RS.10,000 Crore Eligibility for Indira Gandhi National old age Pension Reduced from 65 Years to 60 Pension Rates Hiked from Rs. 200 to Rs. 500 for 80 Yrs. and above
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Union Minister for Rural Development and Panchayati Raj Shri Vilasrao Deshmukh has welcomed the budget proposals for 2011-12. The Minister has said that the budget reflects the commitment of the UPA Government towards Aam admiand the aspirations of the rural masses. Allocation of Rs. 87,800 crores has been provide in the Union Budget 2011-12 for the Ministry Of Rural Development. The department wise break up is as follows
Department Department Of Rural Development Department Of Drinking Water and Sanitation Department of Land Resources Total Allocation Rs. 74,100 Rs.11,000 Rs.2700 Rs. 87,800
The allocation for Bharat Nirman has been hiked by Rs. 10,000 crores from the current year to Rs.58,000 crores.BharatNirman consists of 6 flagship programs, the Pradhan Mantri Gram Sadak Yojana (PMGSY), Accelerated Irrigation Benefit Program, Rajiv Gandhi Grameen Vidyutikaran Yojana, Indira Awas Yojana, National Rural Drinking Water Program and Rural telephony. Under the on-going Indira Gandhi National Old Age Pension Scheme for Below Poverty Line (BPL) beneficiaries, the eligibility for pension will now be reduced to 60 years from 65 years at present. The Finance Minister also announced that the pension amount is being raised from Rs. 200 at present to Rs. 500 per month for those who are 80 years and above.This was announced by the Finance Minister Shri Pranab Mukherjee while presenting the Union Budget in the Lok Sabhatoday. The budgetary allocation in Union budget 2011-12 for the flagship programs under the three departments of the Ministry Of Rural Development is as follows
Program
Al loc ati on
Purpose
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Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
Pradhan Mantri Gram Sadak Yojana(PMGSY)
Indira Awas Yojana
Rs. 40, 00 0c ror es Rs. 20, 00 0c ror es Rs. 10, 00 0c ror es Rs. 29 14 cro res Rs. 9,3 50 cro res Rs. 16 50 cro res Rs. 25 49 cro res
For providing 100 days of wage employment to each rural household opting for it.
For providing connectivity to eligible unconnected rural habitations through good all weather roads and their systematic upgradation For providing assistance to rural BPL households for construction of houses andupgradaion of kutcha houses under IndiraAwas Yojana.60% of the toal allocation to BPL families of SCs/STs For establishing micro enterprises in rural areas. At least 50% of the Swarozgaris will be SCs/STs. 40% women and 3 % disabled. It has been decided to restructure SGSY into National Rural Livelihood Mission. For supplementing States efforts to provide safe drinking water to all rural habitations. For Rural Sanitation.
National Rural LivelihoodMission(NRLM)/Swarna JayantiGram Swarozgar Yojana(SGSY)
National Rural Drinking Water Program(NRDWP)
Total Sanitation Campaign(TSC)
Integrated Watershed Management Program(IWMP)
For integrated watershed management program.
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9.0. Analysis of Rural Budgets (2007-12)

There are three headings which is use by Ministry of Rural Development for releasing fund in Budget. 1- Department of Rural Development 2- Department of Land Resources 3- Department of Water Supply and Sanitation Department of Rural Development Fig 1.0 Note 1:- Fund release to Ministry of Rural Department in the heading Department of Rural Development is shows in the above Bar diagram. Note 2:-All amounts are in Crores. Note 3:- Actual amount released through 2007-11 were Rs.28976.43, Rs.56851.17, Rs.56598.35 and Rs.72070.69. Budget estimated in 2011-12 is Rs.74100.00. Note 4:- Total amount released in this heading up to Rs.214316.64 Note 5:- In the above diagram 2007-08 consider as a base year in the term of releasing fund, for example., in 2007-08 total fund released was Rs.100, so on the basis of 2007-08, Rs.200, Rs.180, Rs.260 and Rs.280 released accordingly. Note 6:- The amount show in the year 2011-12 is called Budget Estimate.
Department of Land Resource Fig 1.1
Note 1:- Fund release to Ministry of Rural Department in the heading Department of Land Resource is shows in the above Bar diagram. Note 2:-All amounts are in Crores.
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Note 3:- Actual amount released through 2007-11 were Rs.1399.51, Rs.1787.88, Rs.2018.54 and Rs.2613.90. Budget estimated in 2011-12 is Rs.2700.00. Note 4:- Total amount released in this heading up to Rs.7819.90 Note 5:- In the above diagram 2007-08 consider as a base year in the term of releasing fund, for example., in 2007-08 total fund released was Rs.100, so on the basis of 2007-08, Rs.130, Rs.170, Rs.200 and Rs.210 released accordingly. Note 6:- The amount show in the year 2011-12 is Budget Estimate not Release Fund.
Department of Drinking Water and Sanitation Fig:-1.2
Note 1:- Fund release to Ministry of Rural Department in the heading Department of Water Supply and Sanitation is shows in the above Bar diagram. Note 2:-All amounts are in Crores. Note 3:- Actual amount released through 2007-11 were Rs.7460.00, Rs.8499.27, Rs.9195.74 and Rs.10565.09. Budget estimated in 2011-12 is Rs.11000.00. Note 4:- Total amount released in this heading up to Rs.35720.10 Note 5:- In the above diagram 2007-08 consider as a base year in the term of releasing fund, for example., in 2007-08 total fund released was Rs.100, so on the basis of 2007-08, Rs.120, Rs.140, Rs.150 and Rs.160 released accordingly. Note 6:- The amount show in the year 2011-12 is called Budget Estimate.
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10.0. Analysis of major Schemes which is come under the heading of Department of Rural Development
1- Fund release to Sawarnajayanti Gram Swaraojgar Yojana
Fig 1.3 Note 1:- Fund release by Department of Rural Development under the scheme of Sawrnajayanti Gram Swarojgar Yojana is shows in the above Bar diagram. Note 2:-All amounts are in Crores. Note 3:- Actual amount released through 2007-11 were Rs.1697.06, Rs.2338.00, Rs.2230.00 and Rs.2665.18. Budget estimated in 2011-12 is Rs.2914.00. Note 4:- Total amount released in this scheme are Rs.8930.24 Note 5:- In the above diagram 2007-08 consider as a base year in the term of releasing fund, for example., in 2007-08 total fund released was Rs.100, so on the basis of 2007-08, Rs.140, Rs.135, Rs.160 and Rs.175 released accordingly. Note 6:- The amount show in the year 2011-12 is called Budget Estimate.
2- Fund released to DRDA Administration.
Fig 1.4
Note 1:- Fund release by Department of Rural Development under the scheme of DRDA Administration is shows in the above Bar diagram. Note 2:-All amounts are in Crores.
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Note 3:- Actual amount released through 2007-11 were Rs.250.00, Rs.292.00, Rs.385.00 and Rs.485.00. Budget estimated in 2011-12 is Rs.461.00. Note 4:- Total amount released in this scheme are Rs.1412.00 Note 5:- In the above diagram 2007-08 consider as a base year in the term of releasing fund, for example., in 2007-08 total fund released was Rs.100, so on the basis of 2007-08 the fund released in next year were Rs.118, Rs.152, Rs.195 and Rs.185 released accordingly. Note 6:- The amount show in the year 2011-12 is called Budget Estimate
3- Fund released to Rural Housing
Fig 1.5 Note 1:- Fund release by Department of Rural Development under the scheme of Rural Housing is shows in the above Bar diagram. Note 2:-All amounts are in Crores. Note 3:- Actual amount released through 2007-11 were Rs.3885.53, Rs.8800.00, Rs.8800.00 and Rs.10337.50. Budget estimated in 2011-12 is Rs.10000.00. Note 4:- Total amount released in this scheme are Rs.31823.05 Note 5:- In the above diagram 2007-08 consider as a base year in the term of releasing fund, for example., in 2007-08 total fund released was Rs.100, so on the basis of 2007-08 the fund released in next year were Rs.225, Rs.225, Rs.235 and Rs.230 released accordingly. Note 6:- The amount show in the year 2011-12 is called Budget Estimate
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4- Fund released to Pradhan Mantri Gram Sadak Yojana Fig-1.6
Note 1:- Fund release by Department of Rural Development under the scheme of PMGSY is shows in the above Bar diagram. Note 2:-All amounts are in Crores. Note 3:- Actual amount released through 2007-11 were Rs.6,500.00, Rs.7,780.00, Rs.11,340.00 and Rs.22,399.80. Budget estimated in 2011-12 is Rs.20,000. Note 4:- Total amount released in this scheme are Rs.48,019.80 Note 5:- In the above diagram 2007-08 consider as a base year in the term of releasing fund, for example., in 2007-08 total fund released was Rs.100, so on the basis of 2007-08 the fund released in next year were Rs.120, Rs.180, Rs.330 and Rs.310 released accordingly. Note 6:- The amount show in the year 2011-12 is called Budget Estimate
5- Fund released for Assistance to CAPART Fig-1.7
Note 1:- Fund release by Department of Rural Development under the scheme Assistance to CAPART is shows in the above Bar diagram.
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Note 2:-All amounts are in Crores. Note 3:- Actual amount released through 2007-11 were Rs.58.54, Rs.52.20, Rs.50.00 and Rs.50.00. Budget estimated in 2011-12 is Rs.100.00. Note 4:- Total amount released in this scheme are Rs.210.74 Note 5:- In the above diagram 2007-08 consider as a base year in the term of releasing fund, for example., in 2007-08 total fund released was Rs.100, so on the basis of 2007-08 the fund released in next year were Rs.90, Rs.80, Rs.80 and Rs.200 released accordingly. Note 6:- The amount show in the year 2011-12 is called Budget Estimate.
6- Fund released to MGNREGS
Note 1:- Fund release by Department of Rural Development under the scheme of MGNREGS is shows in the above Bar diagram. Note 2:-All amounts are in Crores. Note 3:- Actual amount released through 2007-11 were Rs.12661.22, Rs.30000.19, Rs.33539.38 and Rs.35841.49. Budget estimated in 2011-12 is Rs.40000.00. Note 4:- Total amount released in this scheme are Rs.82042.28 Note 5:- In the above diagram 2007-08 consider as a base year in the term of releasing fund, for example., in 2007-08 total fund released was Rs.100, so on the basis of 2007-08 the fund released in next year were Rs.250, Rs.275, Rs.290 and Rs.310 released accordingly. Note 6:- The amount show in the year 2011-12 is called Budget Estimate.
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11.0. Analysis of major Schemes under the heading of Department of Land Resources:1- Fund released in Integrated Watershed Management Program
Note 1:- Fund release by Department of Land Resources under the scheme Integrated Watershed Management Program is shows in the above Bar diagram. Note 2:-All amounts are in Crores. Note 3:- Actual amount released through 2007-11 were Rs.1216.00, Rs.1594.40, Rs.1819.65 and Rs.2456.73. Budget estimated in 2011-12 is Rs.2549.20. Note 4:- Total amount released in this scheme are Rs.7086.88 Note 5:- In the above diagram 2007-08 consider as a base year in the term of releasing fund, for example., in 2007-08 total fund released was Rs.100, so on the basis of 2007-08 the fund released in next year were Rs.125, Rs.150, Rs.200 and Rs.210 released accordingly. Note 6:- The amount show in the year 2011-12 is called Budget Estimate.
2- Fund released to National Program for Comprehensive Land Resource Management. (NPCLRM)
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Note 1:- Fund release by Department of Land Resources under the scheme of NPCLRM is shows in the above Bar diagram. Note 2:-All amounts are in Crores. Note 3:- Actual amount released through 2007-11 were Rs.144.96, Rs.191.48, Rs.198.89 and Rs.157.08. Budget estimated in 2011-12 is Rs.150. Note 4:- Total amount released in this scheme are Rs.692.41 Note 5:- In the above diagram 2007-08 consider as a base year in the term of releasing fund, for example., in 2007-08 total fund released was Rs.100, so on the basis of 2007-08 the fund released in next year were Rs.133, Rs.140, Rs.110 and Rs.105 released accordingly. Note 6:- The amount show in the year 2011-12 is called Budget Estimate.
12.0. Analysis of major Schemes under the heading of Department of Drinking Water Supply and Sanitation:1- Fund released for Rural Water Supply Program
Note 1:- Fund release by Department of Drinking Water Supply Program and Sanitation under the scheme of Rural Water Supply Program is shows in the above Bar diagram. Note 2:-All amounts are in Crores. Note 3:- Actual amount released through 2007-11 were Rs.6401.00, Rs.7299.27, Rs.7995.89 and Rs.8985.31. Budget estimated in 2011-12 is Rs.9350.00. Note 4:- Total amount released in this scheme are Rs.30681.47 Note 5:- In the above diagram 2007-08 consider as a base year in the term of releasing fund, for example., in 2007-08 total fund released was Rs.100, so on the basis of 2007-08 the fund released in next year were Rs.116, Rs.120, Rs.135 and Rs.147 released accordingly. Note 6:- The amount show in the year 2011-12 is called Budget Estimate.
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2- Fund released for Rural Sanitation Program
Note 1:- Fund release by Department of Drinking Water Supply Program and Sanitation under the scheme of Rural Water Sanitation Program is shows in the above Bar diagram. Note 2:-All amounts are in Crores. Note 3:- Actual amount released through 2007-11 were Rs.1058.00, Rs.1200.00, Rs.1199.74 and Rs.1579.78. Budget estimated in 2011-12 is Rs.1650.00. Note 4:- Total amount released in this scheme are Rs.5037.52 Note 5:- In the above diagram 2007-08 consider as a base year in the term of releasing fund, for example., in 2007-08 total fund released was Rs.100, so on the basis of 2007-08 the fund released in next year were Rs.115, Rs.115, Rs.150 and Rs.160 released accordingly. Note 6:- The amount show in the year 2011-12 is called Budget Estimate.
13.0. Short summary of 11th Five Year Plan

With the government laying thrust on rural development, Finance Minister Pranab
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Mukherjee on Monday proposed a 12 percent increase in the department's plan outlay from Rs.66,100 crore in the current fiscal to Rs.74,100 crore for 2011-12. The major share of rural development department's plan outlay has gone to the Mahatma Gandhi Rural Employment Guarantee Scheme (MGNREGS) which provides at least 100 days of wage employment in a financial year to each rural household whose adult members volunteer to do unskilled manual work. The budget proposes Rs.40,000 crore for MGNREGSwhich was extended to all rural areas of the country from April 1, 2008. The budget provides Rs.2,914 crore under Swarnajayanti Gram Swarozgar Yojana (SGSY) for establishing micro-enterprises in rural areas. The scheme, which is being restuctured into National Rural Livelihood Mission, provides for at least 50 percent of the beneficiaries being Scheduled Castes and Scheduled Tribes. For rural housing, the budget proposes Rs 10,000 crore. The money would be used for assistance to below poverty line (BPL) households for construction of houses and upgradation of "kutcha (non-permanent) houses" under the Indira Awaas Yojana. The budget proposes Rs.20,000 crore under the Pradhan Mantri Gram Sadak Yojana for providing connectivity to eligible unconnected rural habitations through good all-weather roads and their systematic upgradation. It proposes Rs.1,186 crore for other rural development programmes including Provision of Urban Amenities in Rural Areas, District Rural Development Agency, National Institute of Rural Development, BPL survey and Council for Advancement of People's Action and Rural Technology. The central plan outlay for rural development in 2010-11 was pegged at Rs.66,100 crore but the revised outlay for the year went up to Rs.76,337.50 crore.
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14.0. Analysis throughout the five year plan 2007-12

1- Fund release and estimates under three main headings: Table-A Name of the Schemes Fund released 2007-11 (Cr) 214317.64 7819.83 35719.83 Budget estimate 2011-12 (Cr) 74100.00 2700.00 11000.00
Department of Rural Development Department of Land Resource Department of Drinking Water Supply & Sanitation.
Total
257857.30
87800.00
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2- Fund released and estimate to schemes which comes under above three
headings:Table-B Name of the Scheme Released Fund 2007-11 (Cr) 8930.24 1412.00 31823.05 48019.80 210.74 82642.28 7086.88 Resource 692.41 30681.47 5037.52 216536.3 9 Budget Estimate 2011-12 (Cr) 2914.00 461.00 10000.00 20000.00 100.00 40000.00 2549.20 150.00 9350.00 1650.00 87074.00
Sawarnajayanti Gram Swarozgar Yojana DRDA Administration Rural Housing Pradhan Mantri Gram Sadak Yojana Assistance to CAPART MGNREGS Integrated Watershed Management Program National Program for Comprehensive Management Rural Water Supply Program Rural Sanitation Program Total
Land
Note 1:- Only 10 main schemes are considered in above table. 3- Release of fund to schemes & programmes in percentage:Table-C Name of the schemes and program Fund released (Cr)
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Total fund % released (Cr)

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Sawarnajayanti Gram Swarozgar Yojana DRDA Administration Rural Housing Pradhan Mantri Gram Sadak Yojana Assistance to CAPART MGNREGS Integrated Watershed Management Program National Program Management for Comprehensive Land
8930.24 1412.00 31823.05 48019.80 210.74 82642.28 7086.88 Resource 692.41
214317.64 214317.64 214317.64 214317.64 214317.64 214317.64 7819.83 7819.83 09 6
4.1 . 65 14.8 4 22.4 0 . 38.5 6 90.8 6 8.8 5
Rural Water Supply Program Rural Sanitation Program
30681.47 5037.52
35719.83 35719.83
85.8 9 14.1 0
15.0. Important Conclusion
The Indian economy was facing grave uncertainties. Growth had started decelerating and the business sentiment was weak. The economy's capacity to sustain high growth was under serious threat from the widespread economic slowdown in the developed world.
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The first challenge before India is to quickly revert to the high GDP growth path of 9 per cent and then find the means to cross the 'double digit growth barrier'. This calls for imparting a fresh momentum to the impressive recovery in growth witnessed in the past few months. In this endeavour, India seek GOD help to make the recovery more broad-based in the coming months. Growth is only as important as what it enables us to do and be. Therefore, the second challenge is to harness economic growth to consolidate the recent gains in making development more inclusive. The thrust imparted to the development of infrastructure in rural areas has to be pursued to achieve the desired objectives within a fixed time frame. We have to strengthen food security, improve education opportunities and provide health facilities at the level of households, both in rural areas. These are issues that require significant resources, and we have to find those resources. The third challenge relates to the weaknesses in government systems, structures and institutions at different levels of governance. Indeed, in the coming years, if there is one factor that can hold us back in realising our potential as a modern nation, it is the bottleneck of our public delivery mechanisms. There have been many initiatives in this regard, in different sectors, at different points of time. Some of them have been effective in reforming the way the Government works in those areas. But we have a long way to go before we can rest on this count. The Rural Budget cannot be a mere statement of Government accounts. It has to reflect the Government's vision and signal the policies to come in future. An enabling Government does not try to deliver directly to the citizens everything that they need. Instead it creates an enabling ethos so that individual enterprise and creativity can flourish. Government should be concentrates on supporting and delivering services to the disadvantaged sections of the society. The first element of the strategy will be extend the green revolution to the eastern region of the country comprising Bihar, Chattisgarh, Jharkhand, Eastern UP, West Bengal and Orissa, with the active involvement of Gram Sabhas and the farming families. Indira Awas Yojana is a popular rural housing scheme for weaker sections. Taking note of the increase in the cost of construction, I propose to raise the unit cost under this scheme to Rs.70,000 in the plain areas and to Rs.80,500 in the hilly areas. As a 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. I propose to enhance the allocation to this fund by 26 per cent from Rs.5,800 crore in 2010-11 to Rs.7,300 crore in 201112.
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References http://rural.nic.in/ http://articles.economictimes.indiatimes.com/2011-0228/news/28641949_1_mnrega-allocation-union-budget http://en.wikipedia.org/wiki/Five-Year_plans_of_India http://indiabudget.nic.in/ub2010-11/bh/bh1.pdf http://www.thehindu.com/business/Economy/article113901.ece FIVE YEAR PLAN 2007-12 printed by OXFORD UNIVERSITY PRESS.
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Suggestions
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Readers Comments
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AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

1. Five year plans of India

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

Review of Ninth Plan Performance

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

2. Review of Tenth Five-Year Plan

AMITY SCHOOL OF RURAL MANAGEMENT

5.2. Rural Housing

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

6.0. 11th Five Year Plan of India (2007 - 2012)

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

Current account balance (% of GDP) Government Fiscal balance (% of GDP)

Government revenue balance (% of GDP) -4.4

AMITY SCHOOL OF RURAL MANAGEMENT

11th Five Year Plan Health

AMITY SCHOOL OF RURAL MANAGEMENT

Women and Children

Growth During Five Year Plans

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

7.0. Analytical part of Rural Budgets 2007-12

AMITY SCHOOL OF RURAL MANAGEMENT

Rural Water Supply Programme Rural Sanitation Programme

7.2. Budget 2007-08

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

7.3. Budget 2008-09

AMITY SCHOOL OF RURAL MANAGEMENT

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AMITY SCHOOL OF RURAL MANAGEMENT

7.4. Budget 2009-10

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

7.5. Budget 2010-11

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

7.6. Budget 2011-12

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

8.0. Welcome Budget 2011-12

AMITY SCHOOL OF RURAL MANAGEMENT

AMITY SCHOOL OF RURAL MANAGEMENT

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

Pradhan Mantri Gram Sadak Yojana(PMGSY)

Indira Awas Yojana