Finance Minister Arun Jaitley said that the central government has boosted spending under the rural jobs scheme MGNREGA to a record high and will for the first time ever provide funds over and above the budgeted amount, dispelling any doubts over the fate of the scheme. He clarified that while in previous years there has always been lower spending as compared to the Budgeted amount,and added that this fiscal the government has not cut Plan Expenditure as it wants to boost growth, while addressing a MGNREGA Sammelan organised to mark the completion of ten years of
the scheme.
Jaitley maintained that there were mistaken apprehensions that the NDA government would end or replace the scheme with a new programme , while rebutting this he said,"But the new government has not only taken the scheme forward, but also hiked the fund allocation under the scheme,".
He added, "This government has not followed the practice of just making higher provisions and later cutting it. I think this would be the first year when the Rs 34,000-35,000 crore which was allocated has not only been spent fully, but also some more resources could be given to MGNREGA, thus the actual spending under the scheme in the fiscal year ending March 31 "would be highest".
He further said that although India has no control over fall in international commodity, mineral and oil prices as well as global slowdown, within the country there is a need to create one more engine of growth by giving funds to the rural sector.
"We should spend more on rural electrification, irrigation and roads to witness development of rural economy. The amount of funds we can put in these sectors, it would not only help improve the sector but also boost the economic growth of the country. This is the responsibility which we are undertaking through MGNREGA," he said.
Jaitley said there are political, social and economic arguments behind putting funds in rural sector when it is stressed. "The funds that we put in that will push the economic growth". He said the Rural Development Ministry has worked on the scheme so that there is asset creation, employment generation, money is transferred directly to bank accounts to avoid pilferage.