Rural Development

The overall budget for the Department of Rural Development (DoRD) has increased marginally in absolute terms, but has declined as a proportion to the total Union Budget from 5.1 percent in 2017-18 (RE) to 4.8 percent in 2018-19 (BE).
The Government announced a target for 1 crore houses to be built by March 2019, with 51 lakh houses each to be built in year 2017-18 and 2018-19. As per the Government’s achievements report, 12.6 lakh houses have been constructed so far, which is only 25 percent of previous year’s target.
The budget allocations to Pradhan Mantri Aawas Yojana-Grameen (PMAY-G) decreased by 9 percent in 2018-19 (BE) from the Revised Estimates of 2017-18.
Government announced a 37 percent increase in loan amount in circulation by the Self Help Groups (SHGs) over the previous year. This is expected to grow by 77 percent this year, to Rs. 75,000 crore by March 2019. Budget allocation to National Rural Livelihood Mission (NRLM) increased by 32 percent from 2017-18 (RE) to 2018-19 (BE).
Half of the department’s budget is allocated to Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the allocation to which has remained the same as 2017-18 (RE). At the same time, several targets have been set for rural infrastructure and livelihood.