Indian Government Extends Funding for Rural Housing to Boost Completion

The Indian Finance Ministry has confirmed the extension of funding for the Pradhan Mantri Awaas Yojana Gramin (PMAY-G) until September 2024, a decision aimed at completing approximately 3.5 million rural houses. This extension is part of the government's ongoing effort to meet its ambitious "housing for all" target by March 2024.

Progress and Funding Allocation

Since its inception in November 2016, replacing the Indira Awaas Yojana, the PMAY-G has seen the construction of around 26 million houses out of a targeted 29.5 million. The senior official stated that the Finance Ministry has directed that the additional funds be exclusively used to cover committed liabilities as of the end of March 2024, emphasizing that no new sanctions should be made beyond the existing targets.

Election Commission Compliance

Despite the upcoming general election, officials assert that this funding extension does not breach the Election Commission's model code of conduct. The funding is intended solely to fulfill pre-existing commitments, ensuring that the initiative remains compliant with electoral regulations.

Financial Contributions and Challenges

Under PMAY-G, the central government covers 60% of the construction costs in most states, with this support increasing to 90% in the Northeast and 100% in Union Territories, while the respective states contribute the remainder. However, there have been delays in construction, notably in West Bengal, where approximately 1.1 million houses remain incomplete due to withheld payments amid allegations of irregularities. Andhra Pradesh has also experienced slowdowns, with only 29% of the houses completed due to issues of rule adherence, though the pace has recently improved.

Conclusion:

The extension of funding for PMAY-G highlights the government's commitment to its rural housing goals, despite operational challenges. The focus on using funds for existing commitments rather than new projects underlines a strategic approach to fiscal responsibility and project completion. The ongoing support for rural housing not only aims to achieve housing targets but also to stimulate regional development and improve living standards across rural India.