Villages to have more jobs, banks, houses

In sync with the UPA government’s policies, finance minister Pranab Mukherjee on Friday stepped up funds for rural development.

He allocated 25% of the total budget to ensure better infrastructure facilities for about 65% of the population living in villages.

Mukherjee stepped up allocation for the ambitious Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) from Rs39,100 crore to Rs40,100 crore in his budget. Authorities, however, continue to struggle to keep issues of corruption and mismanagement of money away from the programme.

Taking a step to solve the problem, Mukherjee announced banking facilities to all habitations with a population of 2,000 and more. The move aims at allowing direct money transfers to people’s accounts.
Ensuring that he was not making just a statement, the finance minister announced Rs66,100 crore for rural development, including Rs40,100 crore for MGNREGS and Rs48,000 crore to Bharat Nirman for 2010-11.
Mukherjee further said that as a part of a strategy to bridge the infrastructure gap in backward districts of the country, the Backward Region Grant Fund had proved to be an effective instrument.
The government announced a 26% increase from Rs5,800 crore in 2009-10 to Rs7,300 crore in 2010-11.
“An additional central assistance of Rs1,200 crore is being provided for drought mitigation in Bundelkhand region,” the minister said.
Mukherjee also announced that the allocation under Indira Awas Yojana was increased by Rs10,000 crore, while unit cost under this scheme was increased to Rs45,000 in the plains and to Rs48,500 in the hilly areas.