Funds for rural roads scheme see gross underutilisation

THE CENTRE HAS spent only about 2,000 crore so far in the current financial year underthe flagship Pradhan Mantri Gram Sadak Yojana (PMGSY), accounting forjust 10.5% of the 19,000 crore allocated for the scheme in the Union Budget.

- PRASANTA SAHU

Even if another %2,000 crore is spent in the remaining three months of the fiscal, total annual expenditure would still fall well short of the budgeted outlay, potentially resulting in savings of nearly $15,000 crore.

This underspending is largely attributable to the limited capacity of states to utilise funds. In several cases, states are sitting on unspent balances from earlier releases or have failed to provide their mandated share under the scheme.

While this has slowed the pace of rural road construction in some regions, the resulting savings have come as a relief for the Centre at a time when tax revenues are under pressure. The lower expenditure — driven by tighter fiscal management rather than fresh spending cuts — is expected to provide a cushion against potential revenue shortfalls.