3 weeks ago
Parliamentary panel flags low spending on rural development funds
Some grown-ups in India's Parliament check whether the government is spending money meant for villages.
A special committee looked at programs that help people who live in rural areas.
They found that the government had kept a lot of money unused — almost half of what was planned.
The government said this happened because it was changing the computer system used to send money to the states.
The committee did not accept that explanation.
It said the government needs clear deadlines and people to be responsible for using the money.
It also said workers should be paid at least ₹400 a day for their work.
The government was planning to pay only ₹300 a day.
The committee wants the money to actually reach the villages and the workers.
Its job is to make sure rural development money is not wasted.
A parliamentary standing committee on rural development headed by Congress MP Saptagiri Ulaka tabled its report in Parliament on Tuesday.
Against ₹1,86,995.61 crore allocated at the revised estimate for 2025-26, actual expenditure was ₹99,090.47 crore — 47.01% less than allocated.
The department attributed lower spending to the ongoing migration from the Single Nodal Agency model to the SNA-SPARSH fund transfer platform.
The committee recommended a minimum wage floor of ₹400 a day under the new VB-G RAM G scheme, while the department has set the base rate at ₹300.
The committee rejected the government's clarifications and demanded enforceable timelines, clear accountability, and time-bound escalation mechanisms.
- Who
- The parliamentary standing committee on rural development, headed by Congress MP Saptagiri Ulaka, and the Department of Rural Development under the rural development ministry.
- What
- The committee flagged low spending and unused funds under rural development schemes and rejected the government's clarification, also calling for a higher minimum wage under the VB-G RAM G scheme.
- Where
- Parliament of India.
- When
- The report was tabled in Parliament on Tuesday; it relates to fund utilisation for the 2025-26 revised estimate period, following an earlier report tabled in March.
- Why
- To ensure rural development funds are actually spent through enforceable timelines, clear accountability of state-level agencies, and adequate wage rates.
Committee: accountability and execution
Government: procedural transition
Reason for low spending
Committee: accountability and execution
Plans alone are insufficient; low utilisation reflects weak execution without enforceable timelines, clear state-level accountability, or escalation mechanisms.
Government: procedural transition
Lower expenditure was primarily due to temporary disruption from migrating to the SNA-SPARSH fund transfer platform, which requires integration with state IFMIS, NIC, PFMS and NPCI.
Wage rate under VB-G RAM G scheme
Committee: accountability and execution
A minimum wage floor of ₹400 per day should be instituted to ensure fair wages.
Government: procedural transition
The department has set the base rate at ₹300 per day.
Key facts
- Funds allocated (RE 2025-26)
- ₹1,86,995.61 crore
- Actual expenditure
- ₹99,090.47 crore
- Spending shortfall
- 47.01% below revised estimate allocation
- Panel chair
- Congress MP Saptagiri Ulaka
- Recommended minimum wage
- ₹400 per day (VB-G RAM G scheme)
- Department base wage rate
- ₹300 per day
- Reason cited for low spending
- Migration from SNA model to SNA-SPARSH platform
- Committee action
- Rejected government clarifications on fund utilisation and wage rate
Quotes
Parliamentary Standing Committee on Rural Development
Committee of Parliament reviewing rural development schemes
“The committee is of the considered view that mere formulation of plans is insufficient unless these plans are accompanied by enforceable timelines, clear accountability of state‑level implementing agencies and time‑bound escalation mechanisms when utilisation falls below predetermined thresholds.”
telegraphindia.com
“The comparatively lower expenditure is primarily due to the ongoing migration from the existing Single Nodal Agency (SNA) model to the SNA-SPARSH platform.”
telegraphindia.com
Sources
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