Only Rs 480 crore, or about 17 per cent of the additional central assistance earmarked for the Pradhan Mantri Gramodaya Yojana (PMGY) during 2001-02 has been released to states in the first seven months of the current fiscal.
The low-fund utilisation rate is causing concern as unused funds lapse at the end of the financial year, resulting in reduction in the use of plan resources earmarked for the sectors.
An additional central assistance of Rs 2,800 crore was allocated to the programme during the fiscal. However, only Rs 481.21 crore of the amount had been released to states till October this year.
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In fact, no funds had been released for primary health and rural electrification. Also, only a few states have got funds for the shelter and nutrition components of the programme.
The PMGY was launched this year to fulfill five basic needs--primary education, healthcare, drinking water, housing and rural roads. A sum of Rs 5,000 crore was provided in the budget for the scheme.
Half of this amount was earmarked for launching a nationwide programme for constructing rural roads and improving rural connectivity. Under the scheme, central assistance is provided to states for implementing specific projects in the identified sectors. The concerned ministries in the central government lay down the guidelines and monitor the implementation of these programmes.
The additional central assistance, given to the states and Union Territories, is in addition to the states