To meet the demand of states, Prime Minister Awas Yojana will be given Rs 13,000 crore extra

MONTHS AFTER the Union Ministry of Rural Development (MoRD) signaled a shortage of funds for the implementation of the Pradhan Mantri Awas Yojna-Gramin (PMAY-G), the Union Ministry of Finance approved an advance payment of Rs 13,000 crore for the Contingency Fund of India’s nationwide housing plan, it has been learned.

The tranche of Rs 13,000 crore is more than the expenditure of Rs 20,000 crore envisaged for PMAY-G in the Union Budget 2022-23.

The government has set a target to build 52.78 lakh houses under the scheme by 2022-23.

In the first seven months (April-October 2022), the Ministry of Rural Development has used Rs 16,785 crore – about 84 percent – ​​of the Rs 20,000 crore under the PMAY-G scheme. The ministry’s other programs, such as PMGSY (Pradhan Mantri Gram Sadak Yojna), which has an almost equal budget allocation (19,000 crore Rs), have been able to use only 40 percent, and the National Rural Livelihood Mission (NRLM) only 25 percent in the the same period. Under NREGS, a demand-driven rural job guarantee scheme, 74 percent of the allocated funds were used in the first seven months.

As several states demanded additional funding for the construction of rural homes, MoRD had already approached the Treasury Department in June for additional allocation. On June 8, 2022, Secretary of Rural Development Nagendra Nath Sinha wrote to Finance Minister TV Somanathan stressing that the budget allocation of Rs 20,000 rupees was “not sufficient” to meet the “expected” demand from the states and Union Territories (UTs). ) to build 52.78 lakh rural houses under the PMAY-G over the course of the year, The Indian Express has learned. Sinha requested him to provide an additional Rs 28,422 crore.

Under the PMAY-G, a beneficiary is provided with a financial aid of Rs 1.20 lakh in flat areas and Rs 1.30 lakh in hilly states. Under the Scheme guidelines, the financial burden of implementing the Scheme is shared by the Center and at a ratio of 60:40 in flat areas and 90:10 for hilly states (special category states, including 8 northeastern states, Himachal Pradesh, Uttarakhand and J&K). In the UTs, including Ladakh, the Center contributes 100 percent of the expenditure for the implementation of the national housing scheme.

The current NDA government, in its first term in office, had restructured the former National Housing Plan and launched the PMAY-G effective April 1, 2016, aiming to provide “Housing for All” by 2022. A target of building 2.95 crore PMAY-G houses by March 2024 has been set, of which 2.07 crore rural houses have been built.

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Prime Minister Awas Yojana was the largest lender — even better than the job guarantee scheme NREGS — in the ministry of rural development for the first seven months of this year. It has raised additional funds itself in the first quarter and has now received more than two-thirds of the money allocated when the budget was presented.

“In fact, the target of building 2.02 crore rural houses under the PMAY-G by August 15, 2022 has been reached,” a source said.

To meet the target of March 2024, 52.78 lakh houses are to be built in 2022-23 and 57.34 lakh houses in fiscal year 2023-24. According to the MoRD estimate, a central share of Rs 48,422 crore would be needed to complete the target of 52.78 lakh houses by 2022-23. However, only Rs 20,000 crore was allocated in the 2022-23 budget.

The budget documents show that out of Rs 20,000 crore, only Rs 15,999.99 crore was allocated for the settlement component while Rs 4,000 crore was set aside for interest payment to NABARD in the form of additional budgetary funds.

Sinha wrote to Somanathan again on October 18, 2022, emphasizing that the budget allocation of the PMAY-G has always been “much lower than the required funds every year” and requesting him to provide at least Rs 15,000 crore before the next additional requirements for Grants so that the central share can be released to the states. The Ministry of Finance has finally informed the MoRD of the approval of an advance payment of Rs 13,000 crore from India’s emergency fund on October 31, 2022.

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