Government-Sponsored Development Programs for Rural India: A Case Study of SGSY in Orissa

Sanjay Kumar Lenka and Amaresh Samantaraya

The IUP Journal of Public Finance, 2010, vol. VIII, issue 4, 21-30

Abstract: Notwithstanding India’s impressive economic performance in the post-reform period, it is widely believed that there has not been adequate trickle down of benefits to rural India. Acknowledging the limitations of the conventional market forces for economic uplifting of the disadvantaged sections of the society, the government has been proactive in bringing them into mainstream through the implementation of special schemes. This paper evaluates the impact of one such scheme, Swarnajayanti Gram Swarozgar Yojana (SGSY). Based on primary data on various economic indicators of tribal households in Koraput District of Orissa, it was observed that the stated objectives of the program are not adequately met. Particularly, the sample beneficiaries have marginally gained in terms of better employment opportunities, while benefits in terms of real income and expenditure were very modest. This underscores the need for redesigning and enlarging the scope of the government-run programs in terms of promoting active involvement of beneficiaries, removing institutional bottlenecks, better information dissemination, and provision of basic infrastructure for transportation, storage and marketing of the finished products. Probably, more autonomy to district-level authorities in design and implementation of such development programs, keeping in mind the region specific needs and prospects, would be very effective.

Date: 2010
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