Press Information Bureau

Government of India

Ministry of Finance

16-March-2012 13:48 IST

Panchayats to be Strengthened Through Rajiv Gandhi Panchayat Sashaktikaran Abhiyan

Rural Development and Panchayati Raj continues to be major thrust areas for the Government to ensure sustainable and more inclusive growth of the country. Emphasizing this during presentation of Budget 2012-13, the Union Finance Minister ShriPranab Mukherjee announced a major initiative to strengthen Panchayats across the country through RAJIV GANDHI PANCHAYAT SASHAKTIKARAN ABHIYAN (RGPSA). Shri Mukherjee announced continuance of Backward Regions Grant Fundscheme in 12th plan with enhanced allocation of Rs.12,040 crores, an increase of 22 percent over the BE 2011-12. Attributing poor sanitation and water quality, the main reasons contributing to malnourishment, the Finance Minister Shri Mukherjee proposed to increase the budgetary allocation for rural drinking water and sanitation from Rs. 11,000 crores in 2011-12 to Rs. 14,000 crores in 2012-13. For creating warehousing facilities in rural areas, the Finance Minister Shri Mukherjee proposed to earmark an amount of Rs. 5,000 crores from the enhanced allocation of Rs. 20,000 crores under Rural Infrastructure Development Fund (RIDF).

DSM/VK/AKA/22

Panchayat strengthening through RGPSA expands local governance capacity and earmarks funding for rural infrastructure and sanitation. The budget establishes Rajiv Gandhi Panchayat Sashaktikaran Abhiyan to strengthen Panchayat capacity and governance, while enhancing funding for the Backward Regions Grant Fund, increasing allocations for rural drinking water and sanitation, and earmarking Rural Infrastructure Development Fund resources for rural warehousing facilities.