Performance of Flagship Programmes in Tamil Nadu

Chapter 2
NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME
In Tamil Nadu, the GSDP has come largely from non-agricultural sector. However, about
45 percent of its population lives in rural villages. Nearly 23 percent of rural people are
poor. The Government has taken various initiatives to provide better amenities and
services in rural areas. Various development schemes, both state and centrally
sponsored, have been implanted mainly for creating wage employment, self employment,
imparting technology, and skill up-gradation to the rural masses. Most of these schemes
are implemented through Local Self Governments while the Rural Development and
Panchayat Raj Department provides the logistic support both on technical and
administrative aspects (State Planning Commission, 2007).
In this Chapter, initially we provide an overview on (i) 11 th Plan objectives
relating to rural development, (ii) 11 th Plan outlays, and (iii) trends in budget
expenditures on rural development in Tamil Nadu. Then, we assess the performance of
the National Rural Employment Guarantee (NREG) scheme in Tamil Nadu based on
observed outcome and the extent of implementation of the scheme as per the guidelines.
2.1 Eleventh Plan Objectives and Outlays on Rural Development
Eleventh Plan of Tamil Nadu states the following objectives relating to rural development:
(i) to enhance the quality of living of rural poor by creating appropriate infrastructure in
rural areas and providing equitable access to them; (ii) to provide increased livelihood
opportunities in rural areas; (iii) to strengthen the self help group (SHG) movement for
empowering women and youth; (iv) to strengthen democracy and make the Panchayati
Raj institutions vibrant, responsive service delivery agents; and (v) to provide an
adequate financial resource base for the rural local bodies to function effectively.
The 11 th Plan monitorable targets relating to important rural development
indicators in Tamil Nadu are: (i) each Village Panchayat should get at least 1 pucca
electrified school building, 1 library with adequate books, 1 village sports centre with
playground and games facilities, connectivity with main road, at least 1 drinking water
source and street lights, and internet connectivity at the end of the Plan; (ii) 30 percent
of households registered under Rural Employment Guarantee Scheme to be provided
with employment; (iii) establishing data bank on all existing Self Help Groups (SHGs); (iv)
50 percent of the SHGs provided with revolving fund to be linked to further credit
assistance; (v) formation and registration of at least one Panchayat level federations in
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