Casting doubts about the Rural Development Ministry’s ability to utilise the unspent 35 per cent of Budget allocation of about ₹1.74 lakh crore (Revised Estimate), Parliamentary Standing Committee on Rural Development, headed by Congress MP Saptagiri Sankar Ulaka, has said that either the Budgetary planning of the government was not prudent enough or there is a problem at the actual implementation of the schemes.
The panel also observed that that meagre hike in allocation of funds during FY26 is not adequate enough to accelerate the sustainable momentum of rural progress. The Committee said that there is a meagre hike of 2.27 per cent in the total Budgetary allocation of the Department of Rural Development (DoRD) at ₹1,88,754.53 crore for FY26, as against ₹1,84,566.19 crore in FY25.
However, the allocation for FY26 is nearly 9 per cent higher compared with current year’s revised estimate.
The panel said that funds for major schemes such as MGNREGA, PMGSY, PMAY-G and NSAP have been, by and large, kept static, though DAY-NRLM is an exception. It has asked DoRD to chalk out quarterly and monthly expenditure plans well in advance in consultation with all stakeholders and undertake all possible measures to ensure the adequacy of funds at each stage of scheme implementation. “It should also be ensured that no scheme of rural development gets hampered either due to a shortage of funds or the slow pace of implementation of targeted schemes,” it noted.
The Rural Development Ministry is currently headed by Shivraj Singh Chouhan, who is also the Agriculture Minister.
Unspent funds
The accumulated unspent funds under various schemes are PMAY-G: ₹15,825.35 crore, PMGSY: ₹3,545.77 crore, NSAP: ₹1,813.34 crore, NRLM: ₹2,583.16 crore, MGNREGA: ₹1,627.65 crore and DDU-GKY: ₹1,313.43 crore.
While appreciating the gradual reduction in unspent balances over time, the Committee said that continued non-utilisation of funds, along with pending wage and material liabilities, and delays in instalment releases, adversely affect the efficiency of scheme implementation, thereby hindering the achievement of desired outcomes.
“This substantial accumulation of unutilised funds reflects not only weaknesses in fiscal planning within DoRD but also gaps in the implementation mechanisms of rural development schemes,” the panel said and suggested the department to develop innovative strategies and adopt a more effective approach to enhance fiscal prudence.
Tussle with WB government
As there has been an on-going tussle between the West Bengal government and the Centre, with regard to fund release under MGNREGS (popularly known as MNREGA scheme), the panel said that suspension of funds to the State has led to “severe consequences”, including a sharp increase in distress migration and disruptions in rural development initiatives.
The Committee found that no Central funds have been released to West Bengal under MGNREGA and various other schemes for the financial years 2022-23, 2023-24 and the current fiscal. The continued suspension of funds “has had a significant adverse impact on the livelihoods of rural population, exacerbating economic hardships in the State,” it said, adding West Bengal should receive its rightful dues for all eligible years, except for the year currently under dispute in Court.