IAY and MGNREGA to get a facelift with the new government’s measures
BJP’s election manifesto had stated ‘’home for all by 2022’’ and they have sprung into action shortly after taking the charge of the new government. The Centre has decided to give Rs 12,000 per household to the poor for working on building their homes. A senior government official stated that this is over and above the unit cost that the government shells out under the rural housing scheme.
Two of the biggest welfare schemes – the Indira Awas Yojana (IAY) and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which together have a corpus of more than Rs 50,000 crore – will pool their resources as part of the new government’s plan to provide a roof to everyone. This will give an upward thrust to both rural employment and consumption at a time when the monsoon is expected to be below average and the per capita income to go low due to less agriculture produce.
The government will provide the amount as labour component from MGNREGA to the poor who work on building their homes under the grant from IAY. This move will not only be beneficial for the poor, but the cement, steel and local building industries will also get a boost. More employment will be generated in these industries more people will find encouragement to build their homes through IAY.
The Government wants to pay incentives to the rural households and encourage them to take up construction of their own houses. This effort will increase the saving on labour cost besides adding a significant amount to their kitty and reviving interest in MGNREGA.
Source- The Economic Times
000 per household, biggest convergence of two social welfare schemes, BJP’s election manifesto, Centre has decided to give Rs 12, Mahatma Gandhi National Rural Employment Guarantee Act, Rs 12000 per household for construction of IAY house under MGNREGA, Two biggest rural plans
