Considered to allocate more funds for rural areas in the next budget
Mumbai: The Finance Ministry is considering increasing the provision for rural expenditure by 50 per cent to Rs 2 lakh crore in the next financial year’s budget. The government is planning to spend more on rural areas with an aim to generate employment and provide affordable houses. Although the Lok Sabha elections to be held in 2024 can also be a reason for this.
Finance Minister Nirmala Sitharaman will present the budget on February 1, which will be her last full budget before the Lok Sabha elections.
For the current financial year, the Finance Minister has allocated Rs 1.36 lakh crore to the Ministry of Rural Development, but it is estimated that Rs 1.60 lakh crore will be spent on rural development by the end of the financial year.
Sources in the Finance Ministry said that the expenditure has been increased by the government to meet the increasing demand for employment under the Employment Guarantee Scheme for rural areas.
Citizens of rural India, who have come out of Corona’s influence, are facing inflation and limited employment options, due to which more and more people are registering for employment under the Employment Guarantee Scheme.
So far in the current financial year, the rural unemployment rate has been above seven percent in every month. According to data from the Center for Monitoring Indian Economy, this rate increased to 8.04 per cent in October.