Gehlot’s housing scheme in Rajasthan suspended
Rajasthan Chief Minister Vasundhara Raje has suspended Mukhyamantri Gramin BPL Awas Yojana which was one of the pet projects of the previous Congress government in the state. The ministry has cited the reason behind suspending this as fiscal prudence.
This scheme was introduced in 2011 and it aimed at providing 6.80 lakh dwelling units to the rural homeless by 2014. Sources in the government said that the previous government had allegedly circumvented the Fiscal Responsibility and Budget Management Act. The Fiscal Responsibility and Budget Management Act recommends limiting the total debt taken by a state to fund the project.
Since the inflow of money was not there, the CM’s ministry thought that it will be prudent on the part of the government to suspend the project for the time being. A senior government official stated that instead of taking the Rs 3,400 crore loan directly from Housing and Urban Development Corporation, the state took it through zila parishads. Due to this move on paper it showed fiscal prudence.
The state stood guarantor for the loan and is effectively paying for the loan as the zila parishads have no repayment capacity. The state does not want to increase the debt burden and wants to understand the Modi government move which is in similar lines. NaMo’s election manifesto stated it clearly that his government will provide housing for all by 2022.
Source- The Indian Express
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