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ROLE OF GOVERNMENT SCHEMES IN RURAL DEVELOPMENT: AN ECONOMIC ASSESSMENT

Area: Department of Economics
Abstract: Rural development in India is strongly shaped by public policy interventions that target employment, connectivity, housing, livelihoods, and social inclusion. Government schemes especially those under the Ministry of Rural Development operate as large-scale fiscal instruments that influence rural incomes, consumption, asset creation, and productivity. This paper provides an economic assessment of key rural development schemes in India, focusing on (i) direct income support through wage employment, (ii) public asset creation and infrastructure-led growth, (iii) livelihood promotion through self-help groups and credit linkages, and (iv) welfare assets such as rural housing. Using a policy-economics framework and secondary evidence, the study explains how schemes translate budgetary outlays into measurable outcomes (persondays, roads built, houses sanctioned, SHG credit), and how these outcomes contribute to poverty reduction, risk mitigation, and local multiplier effects. The assessment also highlights operational constraints such as delayed payments, cost-sharing pressures, and last-mile execution gaps along with policy measures that can increase efficiency, transparency, and development impact.
Author: Dr. Borkar Ajinkya Madhvarao
DOI: MJAP/05/0093
Page: 7
Paper Id: 0093
Publication Date: 18-Dec-2025
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