Lok Sabha Question No. 2963 (UNSTARRED), answered on 2018-01-04
Subject: Development of Economy at Panchayat Level
Ministry: PANCHAYATI RAJ
Asked by: ALOK SANJAR, KAMLA DEVI PATLE

## GOVERNMENT OF INDIA

## MINISTRY OF PANCHAYATI RAJ LOK SABHA UNSTARRED QUESTION NO. 2963 TO BE ANSWERED ON 04.01.2018

## Development of Economy at Panchayat Level

## †2963. SHRI ALOK SANJAR: SHRIMATI KAMLA DEVI PAATLE:

Will the Minister of PANCHAYATI RAJ be pleased to state:

(a) whether the Government proposes to take steps for the manufacture of products from raw materials available in the rural areas and to take the export potential thereof so as to facilitate employment to the rural people and to improve the rural economy;

- (b) if so, the details thereof;
- (c) whether  his  Ministry  has  signed  any  Memorandum  of  Understanding  with  any  other agency/organisation for the export of products from the rural areas;
- (d) if so, the details thereof; and
- (e) the  other  steps  taken  by  the  Government  to  encourage  the  rural  people  to  develop economy at  panchayat  level  and  to  provide  incentives  to  the  rural  people  for  improving  their financial position at panchayat level during the last three years and the current year?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF PANCHAYATI RAJ (SHRI PARSHOTTAM RUPALA)

(a) & (b) Ministry  of  Micro,  Small  and  Medium  Enterprises  is  implementing  various schemes through Khadi and Village Industries Commission and Coir Board for the manufacture of products from raw materials available in the rural areas so as to facilitate employment to the rural people and to improve the rural economy. These schemes are  Prime Minister Employment Generation Programme; Fund for Regeneration of Traditional Industries; Scheme for Promoting Innovation,  Rural  Industry  and  Entrepreneurship;  Market  Promotion  Development  Assistance;

Strengthening  Infrastructure  of  existing  weak  Khadi  Institutions  and  Assistance  for  Marketing Infrastructure;  Khadi  Reform  and  Development  Programme;  Coir  Vikas  Yojana  and  Coir Udyami Yojana.

(c) No.

(d) Does not arise.

(e) The  Ministry  of  Rural  Development, inter  alia ,  is  implementing  rural  development schemes, namely, Mahatama Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pradhan Mantri Aawas Yojana-Gramin (PMAY-G), Pradhan Mantri Gram Sadak Yojana (PMGSY), Deen Dayal Antyodaya Yojana- National Rural Livelihood Mission (DAYNRLM), Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) and National Social Assistance Programme (NSAP) through State Governments and Union Territory Administrations. The objective of these programmes is to bring about overall improvement in the quality  of  life  in  rural  areas  through  employment  generation,  strengthening  of  livelihood opportunities, ensuring minimum national standard for social assistance and provision of other basic amenities. PRIs have been entrusted central role in the implementation and monitoring of rural development schemes. As per MGNREGA Act, the Gram Panchayats are responsible for identification of work to be taken up as per the recommendation of Gram Sabha and in terms of cost at least 50% of the total work shall be executed by the Gram Panchayats. Under PMAY-G, beneficiaries  are  identified  through  Gram  Sabha  based  on  the  Socio  Economic  Caste  Census, 2011 data.

As  envisaged  under  Article  243  G  of  the  Constitution,  the  Panchayats  function  as institutions  of  local  self-governance  and  implement  schemes  for  economic  development  and social justice in rural areas. Under Fourteenth Finance Commission (FFC) for the award period 2015-20, grants to the tune of Rs. 2,00,292.20 crore for the period from 2015 to 2020 are being devolved to Gram Panchayats (GPs) constituted under Part IX of the Constitution, amounting to an assistance of Rs. 488 per capita per annum at an aggregate level for 26 States. The FFC funds are expected to improve the living conditions of the people in the rural areas as these relate to the provision  of  basic  services  and  other  essential  infrastructure  for  the  people  and  thus  provide stimulus for economic development. The allocation and release of Finance Commission Grants (13 th Finance  Commission  for  the  year  2014-15  and  14 th Finance  Commission  for  the  years 2015-16 to 2017-18) for Rural Local Bodies for the last three years and current year are given in Annexure.

Annexure

Annexure referred to in reply of Lok Sabha Unstarred Question no. 2963 for 04.01.2018

Allocation and release of Finance Commission Grants (13 th Finance Commission for the year 2014-15 and 14 th Finance Commission for the years 2015-16 to 2017-18) for Rural Local Bodies for the last three years and current year

(Amount Rs. in crore)

| Year       |   2014-15 |   2015-16 |   2016-17 |   2017-18 |    Total |
|------------|-----------|-----------|-----------|-----------|----------|
| Allocation |   18042.9 |   21624.5 |   33870.5 |   39041   | 112579   |
| Release    |   16211   |   21510.5 |   32028.8 |   23830.2 |  93580.4 |

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