How Modi govt’s major schemes fared in Budget: Biggest outlay hike for PM Awas, ration scheme allocation declines

The outlays for PM KISAN, the scheme providing guaranteed incomes to farmers, and MGNREGS remain unchanged

Union Finance Minister Nirmala Sitharaman before presenting the Budget 2024. (Express photo by Praveen Khanna)

3 min readNew DelhiJul 24, 2024 05:38 AM IST First published on: Jul 23, 2024 at 08:40 PM IST

Several Central schemes saw considerable increases in allocation, including the PM Awas Yojana (PMAY) for rural and urban housing, in the Union Budget on Tuesday.

However, some of the major programmes of the Narendra Modi government, including PM Kisan Samman Nidhi (KISAN) and the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), saw their outlays remain constant when compared to the revised estimates of the previous Budget. The free ration scheme, the PM Garib Kalyan Anna Yojana (PMGKAY), that was extended in late 2023 for another five years saw its allocation decline.

The biggest increase in allocation among the major Central schemes was for the PMAY rural and urban schemes. The rural scheme saw its outlay rise from Rs 32,000 crore in 2023-’24 to Rs 54,500 crore in 2024-’25, an increase of Rs 22,500 crore. The Centre set a target to build 40 lakh pucca homes in rural areas, reduce homelessness by 80% and enlist 24 lakh beneficiaries for the scheme from Scheduled Caste and Scheduled Tribe communities over the remainder of the financial year.

The PMAY’s urban programme was allocated Rs 30,171 crore, up from Rs 22,103 crore in the previous Budget. The government has set a target to build 18 lakh houses across several categories and 40,000 rental units to be built for 82.8 lakh beneficiaries under the scheme in this financial year. The Centre is also aiming to rehabilitate 65% of the population living in slums through the scheme.

Other major schemes saw relatively marginal increases in their allocations. The Jal Jeevan Mission, for instance, saw its outlay rise slightly from last year from Rs 70,000 crore to Rs 70,163 crore, with a target to install four crore new tap connections and ensure that 90% of households have working taps. The insurance and infrastructure programmes under Ayushman Bharat saw their total allocation rise from Rs 8,900 crore to Rs 10,500 crore, with a target of 200 lakh hospital admissions this year across 2,100 empanelled hospitals. The PM Ujjwala Yojana for subsidised LPG cylinders was allocated Rs 10,594 crore, up from Rs 9,960 crore and a target of 25 lakh new connections. The PM Poshan Shakti Nirman (POSHAN) mid-day meal scheme for government school students saw its allocation rise from Rs 10,000 crore to Rs 12,467 crore. The government set a target to reach 9.49 crore beneficiaries and ensure their 100% attendance.

PM KISAN and MGNREGS saw their outlays stay constant from last year. PM KISAN, under which the Centre gives farmers a minimum income support of Rs 6,000 a year, was allocated Rs 60,000 crore with a target to enrol 10 lakh new beneficiaries. The MGNREGS, which provides at least one hundred days of guaranteed wage employment in rural areas, has an outlay of Rs 86,000 crore.

The PMGKAY, which provides free food grains to poor households, saw its allocation decline by Rs 7,082 crore from Rs 2,12,332 crore in 2023-’24 to Rs 2,05,250 crore in 2024-’25. In this financial year, the government has a target to disburse 550 lakh metric tonnes of grains and procure 780 lakh metric tonnes of grains from 1.27 crore farmers.