Pradhan Mantri Gram Sadak Yojana (PMGSY)

Rural Road Connectivity is not only a key component of Rural Development by promoting access to economic and social services and thereby generating increased agricultural incomes and productive employment opportunities in India, it is also as a result, a key ingredient in ensuring sustainable poverty reduction. It is fully funded by the central government. But recently it is announced that it will be funded by both center and states in 60:40 ratio, since 14^th finance commission recommendation for more devolution of tax pool to states. Pradhan Mantri Gram Sadak Yojana represents a rare public programme that qualifies as a success in terms of achieving both equity and efficiency objectives. The latter is measurable by way of connectivity targets being reasonably met, as well as the quality of assets created: The roads built under PMGSY are required to meet the technical specification and geometric design standards in the Rural Roads Manual.

Key factors of Pradhan Mantri Gram Sadak Yojana:

By providing enhanced financial allocation through a modified funding pattern in the PMGSY scheme, Government is seeking to accelerate the implementation of rural connectivity
It is also considering giving financial incentives to the states achieving the targets allocated to them under the PMGSY
Government also has accepted the recommendation of the Sub-Group of Chief Ministers on Rationalization of Centrally Sponsored on modified sharing pattern
Recommendations: The sub group has recommended that fund sharing pattern of PMGSY between the Center and States for all states will be in the ratio of 60:40
But for all land locked 8 North Eastern states and 3 Himalayan states, the fund sharing pattern of PMGSY between the Center and States will be in the ratio of 90:10

Benefits of Pradhan Mantri Gram Sadak Yojana:

Promoting social and economic service: The project PMGSY, not only increased the connectivity within the rural areas, but it also increased the possibility of agriculture income for the farmer, reducing poverty from the rural areas to a great extent
Proper Planning: Previously there was no proper drainage planning which damage the constructed roads during the extreme weather conditions. BUT the PMGSY develop the proper drainage plan preventing the road from getting water logged
Business Expansion: The retail store within rural areas have become more accessible for the small scale business companies, which were not previously available
No lack of Funding: The project did not get dismissed due to lack of funding ever

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