Paschim Banga Awas Scheme: State Releases Rural Housing Funds
Source:The Hindu ↗
Why It Matters
The article exemplifies the practical challenges and political friction in fiscal federalism, particularly regarding Centrally Sponsored Schemes (CSS). It highlights issues surrounding the conditionalities of central grants (such as utilization certificates), state-level rebranding of central schemes, and the impact of political differences on the delivery of welfare schemes like rural housing.
Summary
West Bengal Chief Minister Mamata Banerjee initiated the release of funds to 10 lakh beneficiaries under the state's rural housing scheme, which has been renamed from 'Banglar Bari' to 'Paschim Banga Awas'. The move comes in response to the Central Government stopping its funding for the Pradhan Mantri Awas Yojana (Grameen) (PMAY-G) in the state. The Centre alleged widespread corruption and a lack of utilization certificates from the previous Trinamool Congress (TMC) government as reasons for withholding the funds. Consequently, the state government is now bearing the entire cost of the housing scheme. The renaming and the funding dispute underscore ongoing political and financial friction between the Centre and the State regarding Centrally Sponsored Schemes.
Key Points
- The West Bengal government has provided the first installment of financial assistance to over 10 lakh beneficiaries for rural housing.
- The state housing scheme previously known as 'Banglar Bari' has been officially renamed 'Paschim Banga Awas' following State Cabinet approval.
- The Centre halted its share of funding for the Pradhan Mantri Awas Yojana (Grameen) (PMAY-G) in West Bengal, citing large-scale corruption and the state's failure to submit utilization certificates.
- Due to the freeze in central funds, the West Bengal government has decided to fund the housing scheme entirely from the state exchequer.
Important Terms
Pradhan Mantri Awas Yojana (Grameen) (PMAY-G)
A Centrally Sponsored Scheme under the Ministry of Rural Development aiming to provide pucca houses with basic amenities to eligible rural households, typically funded in a 60:40 Centre-State ratio.
UPSC context
Core GS-2 topic (Welfare Schemes). Important for Prelims and Mains regarding rural development, funding patterns, and scheme convergence.
Paschim Banga Awas
The current name of West Bengal’s rural housing scheme. The state government independently funds this scheme following the Centre's decision to withhold PMAY-G funds over compliance and scheme-branding disputes.
UPSC context
Relevant to GS-2 (Centre-State Relations, Federalism) as a case study of financial friction and independent state welfare funding.
Banglar Bari
The previous name given by the West Bengal government to its rural housing scheme. This regional rebranding of the central PMAY-G scheme was a primary cause of the Centre-State funding dispute.
UPSC context
Useful for GS-2 (Federalism) answers highlighting conflicts over scheme nomenclature, co-branding, and central oversight in Centrally Sponsored Schemes.
Prelims Trap
"Grants for Centrally Sponsored Schemes like PMAY-G are released as statutory grants under Article 275."
CSS grants are discretionary, made under Article 282. Article 275 deals with statutory grants recommended by the Finance Commission. Mixing these up is a classic UPSC federalism trap.
Static Concepts Connected
What distinguishes Centrally Sponsored Schemes (CSS) from Central Sector Schemes?
- Funding: CSS are jointly funded by the Centre and States (e.g., 60:40 or 90:10). Central Sector schemes are 100% funded by the Union government.
- Implementation: State governments implement CSS, making state machinery vital. Central Sector schemes are directly implemented by Central government ministries or agencies.
- Constitutional Basis: CSS grants are typically disbursed as discretionary grants under Article 282 of the Indian Constitution.
What is the role of Utilization Certificates (UC) in Centrally Sponsored Schemes?
- Accountability: UCs are formal audit documents submitted by states proving that previously allocated central funds were spent strictly on the sanctioned project.
- PFMS Dependency: The Centre uses the Public Financial Management System (PFMS) to track funds. Subsequent CSS installments are blocked if states fail to upload valid UCs.
Cross-Topic Patterns
CSS Conditionalities & Federal Friction
The withholding of funds over Utilization Certificates highlights growing tension in fiscal federalism, linking Article 282 discretionary grants to strict public finance compliance via the PFMS platform.
PMAY-G Target Identification & SECC
While funding disputes dominate political news, PMAY-G's core UPSC relevance remains its beneficiary selection methodology, which shifted from outdated BPL lists to housing deprivation parameters using SECC 2011 data.
Expect a multi-statement prelims question comparing Article 282 discretionary CSS grants with Article 275 statutory grants.
Linked PYQs · 2
Linked PYQs · 2
- 2012WBCS_PRELIMSGS1
Name the programme of the poverty alleviation launched by the Government of India which was immensely benefited the rural power :
- 2023WBCS_PRELIMSGS1
The major share of expenditure in the Union budget 2023-24 goes to —
