Health of rural development institutions remains fragile: 15th Finance Commission Chairman

The 15th Finance Commission Chairman N K Singh expressed concerns over the fragile health of rural development institutions in India, particularly panchayati raj institutions, during his speech at the 2nd Rohini Nayyar award for outstanding contribution to rural development.He highlighted the lack of financial viability and technical competence as major challenges faced by these institutions.

Importance of Rural Development Institutions

Singh emphasized the significance of rural development institutions, stating that the centerpiece of a rural development program is the health of urban local bodies, municipalities, and, most importantly, the framework of panchayati raj institutions.He questioned whether these institutions have been adequately restructured to meet the changing requirements of the present times.

Challenges Faced by Rural Development Institutions

Singh pointed out the limited projectisation capabilities and viability of technical assistance for project preparation in rural development institutions.He attributed this to technical incompetence, which often leads to the inefficient utilization of meager financial resources.The 15th Finance Commission, in its report, had recommended compulsory auditing of accounts, adoption of uniform practices, and conditional transfers for crucial national programs, including the health sector, to strengthen these institutions.

Strengthening Rural Healthcare Institutions

In light of the Covid pandemic, Singh stressed the importance of strengthening rural healthcare institutions.He highlighted the need for improved infrastructure, facilities, and trained personnel to ensure accessible and quality healthcare services in rural areas.

Rohini Nayyar Award

The 2nd Rohini Nayyar prize was awarded on Tuesday to engineer-turned-social worker Deenanath Rajput for his work on empowering tribal women in Bastar, Chhattisgarh.Rajput encouraged tribal women to join farming and helped them sell their farm produce, benefiting around 6,100 farmers.The award was presented on the occasion of Nayyar's 79th birth anniversary, recognizing her significant contributions to rural development in India.

The health of rural development institutions is crucial for the overall development of rural areas in India.Addressing the challenges faced by these institutions, such as financial viability and technical competence, is essential to ensure effective and sustainable rural development.By strengthening these institutions, India can enhance the delivery of essential services, promote economic growth, and improve the quality of life for its rural population.