The Ministry of Rural Development headed by Secretary Shri Amarjeet Sinha, today made a detailed presentation on the Ministry’s plans on fostering higher inclusive growth, equity, efficiency and transparency – to the Chairperson Shri N.K. Singh and Members and senior Officials of the Fifteenth Finance Commission.        

The Presentation dwelled upon the changing structure of rural economy; Gram Panchayat led, data driven and accountable development approach; governance reforms for better outcomes and other specific proposals for rural development.

 The Ministry made a case for additional resources for Rural India on the account of :-

• Higher/New State Share – PMGSY, PMAY (G).
• Extra Budgetary borrowing – PMAY Gramin.
• Finance Commission transfer.
• Massive rise in loans to SHGs – ₹ 81,077 cr.
• Increasing incomes through livelihood thrust – farm ponds, wells, animal sheds/resources.
• Larger effective transfer due to governance reforms – IT/DBT – Decline in leakages.
• Other specific proposals of Rural Development like maintenance of roads, transfer of certain schemes, and Human Resource Reforms.

The presentation also made a case of Government’s Reforms and conversant Growth Panchayat Development:-

• Governance Reform and Convergent Gram Panchayat Development Plans as necessary pre-condition for fund transfers
• Capacity building of Panchayats (along with women SHGs), use of technology, data driven financial management reforms, and geo-tagging as necessary conditions.
• Comprehensive HR as part of recommendations.
• Earmarking for road maintenance.
• Transferring DRDSs to States.

The Commission shall now take into consideration all the issues raised for the purpose of framing its recommendations to the government. 

Fiscal transfers tied to governance reforms: increased rural funding contingent on Panchayat capacity, IT/DBT and earmarked maintenance. The Ministry asked the Finance Commission for increased fiscal transfers and extra budgetary borrowing to support flagship rural schemes and expanded SHG lending, coupled with conditional governance measures: Gram Panchayat led, data driven, convergent development plans; Panchayat and SHG capacity building; IT/DBT and geo tagging to reduce leakages; HR reforms; earmarked road maintenance; and transfer of certain schemes to states.