RURAL DEVELOPMENT

Karnataka has 59,630 rural habitations including 27,481 inhabited revenue villages.
According to 2001 census, about 66 per cent of the total population of 529 lakh people live in
villages. About 67 lakh households who live in rural areas depend mainly on agriculture for
livelihood. The distinguishing features of the States rural society are the following:

Large number of scattered and small habitations;

Dependence on agriculture and related activities;

States domestic produce, compared to the proportion of population, being low,
the per capita income is also low;

Infrastructure like roads, electricity, housing, sanitation is much below the
expected levels;

Backwardness in terms of human development parameters like literacy, health
services and skill endowments.
The key to development of rural areas in the State is through improving agricultural
productivity and encouraging other economic activities thereby enhancing the availability and
quality of infrastructure, improving the quality of those services which contribute to the up
gradation of human development.
Karnataka has embarked upon a bold and new strategy of implementation of various
development programmes through an integrated approach apart from the normal rural
development programmes. To commemorate the Golden Jubilee of the formation of the State
of Karnataka, SUVARNA GRAMODAYA YOJANA has been launched to develop 1,000
villages in a sustainable manner every year into model villages or Suvarna Gramas (Golden
villages). The new initiative has an unprecedented commitment of the States resources every
year over and above the available allocations for various on going development programmes.
The objectives of the Suvarna Gramodaya strategy for the development of the selected
villages are:

To upgrade the physical environment of the selected villages for improving the
quality of life;

to fully develop the income generating potential of land based activities

to provide full and adequate infrastructure for human resources development
including education, health services, childcare facilities etc.,

to generate significant levels of non-agricultural employment, especially for educated
un-employed youth

to support community awareness and development through self help groups, cultural
associations etc.,
The programme was launched during 2006-07 and the actual implementation started
from 2007-08. So far 3173 villages have been selected at a total cost of Rs.2418 crore. The
selection of villages is based on a criteria with due weightage in the allocation of funds.
World Bank Assisted Grama Swaraj- Karnataka Panchayat Strengthening Project
The World Bank Assisted Gram Swaraj-Karnataka Panchayat Strengthening Project
has been launched during October 2006. The total project cost is Rs.600 crore of which
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Rs.540 crore is shared by the World Bank and the remaining Rs.60 crore is states share. 85%
of the total project cost will be provided as untied grants to the Grama Panchayats of
backward taluks identified by the High Power Committee for Redressal of Regional
Imbalance in the State. Remaining 15% will be spent on capacity building.
Project Overview
The project emphasizes to improve the service delivery by Gram Panchayats, in
particular to the management of public resources and delivery of services prioritized and
decided by the local people. The strategy to achieve this development objective is through
capacity development of the PRIs through imparting training to its members and
functionaries. The project will be implemented in 1341 GPs in 39 Most Backward Taluks
identified by the High Power Committee for Redressal of Regional Imbalance.
Key outputs of the projects are:
Efficacy of larger grants to be used in accordance with local priorities;

Revamped financial management and procurement system for GPs;

Higher transfers to Panchayats in Most Backward Taluks; Monitoring of service
delivery performance at the GP level (e.g. rural drinking water, education,
participatory planning, financial management, capacity building);

Improved framework for own revenue collection;

Computerization of all GPs;

Environmental framework for GPs;

Improved planning guidelines with provisions for enhanced participation;

Monitoring system on fiscal and service delivery aspects of Panchayats;

Information on Panchayat performance available to constituents; and

A decentralization cell at state level to monitor and manage the process.
Key Outcomes would be:

Predictable state disbursements (transfers) and as per commitments;

Higher investments by GPs to improve social indicators;
Greater local revenue mobilization;
Improved monitoring and delivery of key services to rural population;
Higher expectations of rural households on rights and Panchayat performance; and
Improved participation of households including the poorest in local planning and
improved targeting of poorer households.

Taluka Resource Centers (Samarthya Soudhas)

To impart training and upgrade skills to the elected representatives, members of the
Self-help groups, NGOs and other stakeholders, 175 Taluk resource centres (Samarthya
Soudhas) are being constructed under this project. Out of 175 taluks- proposed at one soudha
per taluk, construction of 102 Samarthya Soudhas has been taken up at a unit cost of Rs. 16
lakh. While Samarthya Soudhas has been constructed in 58 taluks, the work in other taluks is
at various stages of completion.

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The other activities contemplated under the Grama Swaraj project are:

Supervision and maintenance of accounts Grama Panchayats are required to adopt
double entry book keeping system and the accounts duly audited by the chartered
accountant periodically;

Computerization in the maintenance of accounts;

To ensure better participation of the public in the activities of the Panacahayt Raj
System dissemination of details of services delivered by the PRIs through media
campaign;

Establishment of satellite based training centers for effective on line monitoring of the
activities.
Capacity Building
The Abdul Nazir Sab State Institute of Rural Development (ANSSIRD), Mysore,
takes up upgradation of skills and Capacity Building for the stakeholders of the project.
Several training programmes have been conducted by the ANNSSIRD covering officials &
elected representatives, Self-help groups and members of non-governmental organisations.
Various poverty alleviation and area development programmes viz., Swarna Jayanthi
Grama Swarozgar Yojana, National Rural Employment Guarantee scheme, Western Ghat
Development Programme are being implemented for improving the living conditions of the
people and for creation of economic and political awareness in rural areas. Besides,
development grants to Panchayat Raj Institutions are provided to supplement the
development activities.
1. Review of Annual Plan 2009-10
Financial Progress in Annual Plan 2009-10

Outlay
Rural Development

165116.86

(Rs.lakh)
Anticipated
Expenditure
165116.86

Out of total allocation for state schemes, entire allocation is the anticipated
expenditure during 2009-10.
Physical Progress in Annual Plan 2009-10
Sl.
no
1
2

Item

Unit

Swarna Jayanti Grama

swarozgar Yojana
NREGS
a) Employment Generated

No. of selfhelp Groups

b) Employment
provided

Lakh
mandays
No in lakh

93

Target
5104
809.93

% of
Achievement
(Upto Dec 09) Achievement
4739
92.9
1092.03
21.33

134.8

2. Annual Plan 2010-11

Rs. 2585.96 crore has been proposed for 2010-11 for implementing various
programmes. Of this outlay Rs. 1646.71 crore has been provided for state plan schemes and
Rs. 939.25 crore as Centres share for centrally sponsored schemes.
A) STATE SECTOR SCHEMES
a) Central Plan Schemes
There are no Central Plan schemes.
b) Centrally Sponsored Schemes
1) DRDA Administration Charges for Project Cell - SEP
Rs.2.16 crore has been proposed (which include Centres share of Rs. 1.62 crore) to
meet the administrative costs for implementation of self-employment programmes.
2) State Institute for Rural Development (SIRD)
Rs.1.62 crore is proposed to be shared equally between the Centre and the State for
organizing various training programmes, workshops, seminars, research etc. connected with
rural development.
3) Karnataka Rural Employment Guarantee Scheme
Karnataka Rural Employment Guarantee Scheme under National Rural Employment
Guarantee Act, 2005 was launched during 2006. The scheme has since been extended to
cover all the districts with the objective of providing a minimum of 100 days of employment
for every family. This being a demand driven programme an additional allocation of Rs.
65.19 crore has been proposed as states share under state sector supplementing the allocation
made under district sector.
c) Additional Central Assisted Schemes
1) Backward Region Grant Fund (BRGF)
Rashtriya Sam Vikas Yojana under Backward Region Grant Fund, with 100 per cent
financial assistance from the Centre, is being implemented in the State from 2003-04. The
main objective of this programme is to address the problems of low agricultural productivity,
unemployment and to fill the critical gaps in physical and social infrastructure. The project is
to be implemented over a period of 3 years at an outlay of Rs.45 crore with nested annual
plans of Rs.15 crore, for each district. Gulbarga, Bidar, Chitradurga, Davanagere and Raichur
districts of the State have been selected under this initiative.
An outlay of Rs. 108.17 crore is proposed for 2010-11.

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d) Externally Aided Projects

1) Karnataka Rural Poverty and Panchayat Project (Grama Swaraj)
The objective is to provide opportunities towards improving present conditions
particularly with respect to management of public resources and delivery of relevant services
with special emphasis on 39 Most Backward Taluks identified by the High Power Committee
for Redressal of Regional Imbalances. In achieving this it has been intended to;

Build capacity in Grama,Taluk and Zilla Panchayats

Improve framework and guidelines for own revenue collection

Provide Formula based block grants to 1341 grama panchayats in the Most
Backward Taluks

Revamp financial management and procurement system.

Improve the effectiveness of service delivery
To undertake connected activities Rs.88.54 crore has been proposed for 2010-11.
e) Other Ongoing Schemes
1) Karnataka Panchayat Raj Grants
Rs. 60.00 lakh is proposed for the implementation of KPR Act, 1993 and related
activities.
2) Grameena Abhivrudhi Bhavan
Rs. 2.00 crore has been proposed for the construction of Grameena Abhivrudhi
Bhavan to house different departments overseeing rural development programmes.
3) Suvarna Gramodaya
Suvarna Gramodaya Programme is being implemented with the involvement of
various departments of Government, Panchayat Raj Institutions and non-governmental
organizations. Rs. 300.40 crore has been proposed for on going works in the selected 3173
villages.
4) Western Ghats Development Programme
Rs.26.32 crore has been proposed for this flagship programme for taking up
development of western ghat region spread across 40 taluks of 11 districts.
5) Providing Urban Amenities in Rural Areas
Rs. 1.00 crore has been proposed.
6) Implementation of Karanataka Rural Employment Guarantee Act
Rs.1.03 crore has been proposed towards the administrative cost for State
Headquarters establishment overseeing the NREG Act.

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7) Computerisation of Zilla and Taluk Panchayats

Rs. 1.00 crore has been proposed for providing computer support, both hardware and
software, to the Zilla and Taluk Panchyats.
f) New Schemes
There are no new schemes.
B) DISTRICT SECTOR SCHEMES
An outlay of Rs.1491.72 crore, including the Centres share of Rs. 936.82 crore has
been proposed for the implementation of on going district sector programmes.
a) Special Development Plan
There are no schemes.
b) Special Component Plan
An amount of Rs. 231.44 crore has been proposed for 2010-11, both under State and
district sectors for taking up activities exclusively benefiting these categories.
c) Tribal Sub Plan
An allocation of amount of Rs. 93.07 crore has been proposed for 2010-11, both
under State and district sectors for taking up activities exclusively benefiting these categories.
ABSTRACT

State Sector
Central Plan Schemes
Centrally Sponsored Schemes
Additional Central Assisted Schemes
Externally Aided Projects
Other On going Schemes
New Schemes
Total : State Sector
District Sector
Central Plan Schemes
Centrally Sponsored Schemes
Other On going Schemes
New Schemes
Total : District Sector
Grand Total

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Central
Share
243.00
243.00
93680.03
93682.08
93925.08

(Rs. lakh)
State
Share
6654.00
10817.00
8854.00
33235.60
59560.60
14497.65
40992.13
55489.78
115050.38