Lok Sabha Question No. 846 (UNSTARRED), answered on 2017-07-20
Subject: Criteria for Funds Allocation under PMGSY
Ministry: RURAL DEVELOPMENT
Asked by: HARI MANJHI

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 846 TO BE ANSWERED ON 20 .0 7.2017

## CRITERIA FOR FUNDS ALLOCATION UNDER PMGSY

## 846. SHRI HARI MANJHI:

W ill the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) whether the earlier Government was allocating funds fully under Pradhan Mantri Sadak Yojana (PMGSY);
- (b) if so, the reasons for which the Government is changing the ratio and making it cent and 40 per cent between the Centre and States, respectively;
- (c) whether  this  policy  will  have  an  adverse  effect  on  economically  backward including Jharkhand and Bihar; and
- (d) whether  the  Government  proposes  to  consider  allocating  the  fun ds  to  the  States  as decided by different committees in the recent past?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT ( SHRI RAM KRIPAL YADAV )

- ( a) : 'Rural  Roads  'is  a  State  subject  and Pradhan  Mantri  Gram  Sadak  Yojana (PMGSY) is a one - time special intervention to provide rural connectivity, by way of a si -weather road, to the eligible unconnected habitations in the core network.  The budget for the Pradhan Mantri Gram Sadak Yojana (PMGSY) during the year s 2012- 13 to 201 7- 18 is as follows:

|   Sl. No. | Year     |   Budget Allocation (Rs. in crore) Govt. of India's share | Comments                                      |
|-----------|----------|-----------------------------------------------------------|-----------------------------------------------|
|         1 | 2012- 13 |                                                      8885 | 100% grant from Central Government            |
|         2 | 2013- 14 |                                                      9806 | 100% grant from Central Government            |
|         3 | 2014- 15 |                                                     14200 | 100% grantfrom Central Government             |
|         4 | 2015- 16 |                                                     14291 | The fund sharing ratio changed to 90:10 60:40 |
|         5 | 2016- 17 |                                                     19000 | The fund sharing ratio changed to 90:10 60:40 |
|         6 | 2017- 18 |                                                     19000 | The fund sharing ratio changed to 90:10 60:40 |

(b) to (d) : In view of the fact that budgetary allocation was relatively low in 201 - 13 to 2014- 15 and that s everal States also represented for higher sanction and higher annual financial allocation , hence i n order to give a boost topublic investment in the rural infra structure sector , a decision was taken, in 2015 to modify the fund sharing pattern of the scheme and to accelerate execution of PMGSY and complete the connectivity mandate of the balance eligible habi under PMGSY -I by March, 2019 itself, before the target year of 2022.

The  Sub- Group  of  Chief  Ministers  on  Rationalization  of  Centrally  Sponsored  S chemes in its Report  recommended  that  fund  sharing  pattern  of  Pradhan  Mantri  Gram  Sadak  Yoja (PMGSY) be in the ratio of 60:40 between the Centre and States for all States except f 8 North Eastern and 3 Himalayan States for which it will be 90:10. The Sub- Group also recommended that  this  modified  sharing  pattern  should  be  effective  from  Financial  Year  2015 - 16  onwards. Subsequently, Department of Expenditure, Ministry of Finance ,communicated the approval of above  recommendation  for  modification  in  the  f und  sharing  pattern  of  PMGSY  scheme and intimated that a ll ongoing as well as outstanding works of PMGSY, would be covered under this sharing pattern.

The modified fund sharing pattern does not have any adverse effect on economically ba states includ ing Bihar and Jharkhand. The annual allocation for both Bihar and Jharkhan increased after change in the fund sharing pattern in 2015. The annual allocation for Bihar and Jharkhand for the last four years are as follows:

## (Rs. in crore)

|   Sl. | Year     |   Bihar Allocation , Govt. of |   Jharkhand Allocation , Govt. of |
|-------|----------|-------------------------------|-----------------------------------|
|     1 | 2014- 15 |                          1650 |                               257 |
|     2 | 2015- 16 |                          2781 |                               865 |
|     3 | 2016- 17 |                          3000 |                               868 |
|     4 | 2017- 18 |                          2728 |                              1109 |

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