(GIST OF YOJANA) Addressing Rural Poverty: Livelihood Development and Diversification [SEPTEMBER-2019]
(GIST OF YOJANA) Addressing Rural
Poverty: Livelihood Development and Diversification
Addressing Rural Poverty: Livelihood
Development and Diversification
As the Sustainable Development Goals (SDGs) bring out clearly, poverty
is multidimensional and therefore requires a range of interventions. The
challenges of creating poverty- free Rural Clusters.
Non-farm livelihoods and multiple livelihoods are required to make a
difference. As recent data points out, half of manufacturing and one-third
of the services sector is already part of the Rural Economy. Income and
employment through Livelihood Development and diversification is clearly the
way forward. 4 additional sources of funds for addressing Rural Poverty
during this period:
The sharing pattern under Programmes for non Himalayan States became
60:40, and 90:10 in Himalayan States, Under Pradhan Mantri Awas Yojana
Gramin (PMAY-G), instead of a 75:25 sharing earlier, it became 60:40
leveraging a total of Rs.45,000 crore in 3 years as State share, against a
Government of India provision of Rs. 81,975 crore. Likewise, from December
2015, States started contributing 40% of Pradlian Mantri Gram Sadak Yojana.
(PMGSY) funds. This leveraged an additional Rs. 8000 to Rs. 9000 crore of
State share each year which were not available earlier with PMGSY. A similar
increase happened in Programmes that were brought on 60:40 share from the
earlier 75:25, like NSAP, DAY-NRLM, etc.
From 2017-18, under the Housing Programme, additional resources were
mobilized through Extra Budgetary Resources (EBRs) as well. A total of Rs.
21,975 crore of Extra Budgetary Funds have been mobilized/are being
mobilized in 2017 to 2019 period for PMAY-Gramin. Rs. 7329.43 crore has
already been disbursed through EBR.
The transfer of funds under the 14th Finance Commission awards has also
registered a significant increase compared to the allocations earlier under
the 13lh Finance Commission.
The fourth important factor to note is the leveraging of Bank Loans by
Women Self Help Groups (SHGs) during this period. A total of Rs. 1.64 lakh
crore have been mobilized as Bank Loan by Women Self Help Groups in the last
5 years. The Bank Loan outstanding has more than doubled from Rs. 31865
crore in 2013-14 to Rs. 69733 crore in 2017-18 under DAYNRLM.
Some of the salient livelihood generating and Income and Employment
supporting initiatives over the last 3 years are as follows:
143 lakh hectares of land provided benefit of Water Conservation works.
Nearly 15 lakh farm ponds and 4 lakh wells for irrigation besides a very
large number off.
Water Conservation Community Structures came up during this period.
Over 6222 Custom Hiring Centres managed by Women Self Help Groups fully
functional during this period.
11000 Bank Sakhis and 773 Bank Mitras trained as Banking Correspondents
(BCs) from among SHG Women.
33 lakh women farmers supported under non-chemical based agro ecological
86000 Producer Groups and 126 Agri Producer Companies established.
449 vehicles under Aajeevika Gramcen Express Yojana (AGEY) for Rural
Transport plying on roads with women drivers.
Over 9 lakh Solar Lamps assembled by nearly 4000 Women Self Help Group
Members in remote regions of Bihar, Uttar Pradesh. Jharkhand, Rajasthan,
Over 6000 Barefoot Technicians trained and certified.
3.54 lakh candidates successfully placed for wage employment under Deen
Grameen Kaushalya Yojana (DDU-GKY) and 12.65 lakh candidates settled for
self employment under Rural Self Employment Training Institutes (RSETIs) in
the last 4 years.
10949 Rural Masons trained and certified under the Housing Programme.
The Central Government’s commitment to ensure effective implementation
FY 2017- IS was Rs. 55,167 crore which was highest since inception.
Fund Utilization: The fund utilization (including Central and State
share) has also seen a significant increase in comparison to previous
financial years. The total expenditure in FY 2017-18 is about Rs. 64,288
crore (Provisional) which is the highest ever since inception.
The person-days generated under MGNREGS in the last 3 years has been in
the range of 235 crore every year. This is higher than most years before,
indicating how the thrust on durable assets and Individual Beneficiary
Schemes (IBSs) has generated a steady demand for MGNREGS.
Factors related to Poverty of Households
Lack of education and skills
Under-nutrition and ill-health
Lack of employment opportunities
Lack of safe housing
Limited access to public services
Clutches of middlemen/corruption/moneylender
Absence of Social Capital collectives of women/youth/poor households.
Poverty of Geographies
Low price for produce distress
Unirrigated agri/vagaries of monsoon
Lack of basic infra-roads, electricity, internet.
Lack of access to markets and jobs
Lack of non-farm opportunities
It is evident from the data and interventions listed above that higher
financial resources have been made available for addressing rural poverty
over the last few years along with a much higher scale of leverage of bank
loans for women Self-Help Groups.
These have been contributing to both rise in incomes and employment
through diversification and development of livelihoods.
A few illustrative examples of such diversification have been listed
above. Overall the challenges to rural poverty are being effectively
addressed through the range of interventions outlined above. Evaluation
studies by the Institute of Rural Management Anand (IRMA) have also
confirmed increase in incomes, productive assets, and enterprises in
villages where Women Self-Help Groups are active under DAY-NRLM.
Similarly, Studies of Water Conservation works under MGNREGA by the
Institute of Economic Growth confirmed increase in income, productivity,
acreage, and the
water table. Such increases are bound to generate employment on a large