DAY-NRLM Funding and Impact: Budget Allocation and Achievements
UPSC / SSC current affairs note · Schemes
Why in news
The Ministry of Rural Development released state-wise details of budget allocation, approved funds, and expenditure under DAY-NRLM for FY 2026-27. Recent independent impact evaluations (3ie 2025, NITI Aayog 2025) highlight significant positive outcomes in income, consumption, women empowerment, and financial inclusion, underscoring the scheme's effectiveness.
Background
Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) is a flagship scheme of the Ministry of Rural Development aimed at reducing poverty by promoting self-help groups (SHGs) and community institutions among rural poor households. It was launched in 2011 and restructured in 2015.
Key facts
10.05 crore rural households organized into 92 lakh SHGs under DAY-NRLM.
3ie Impact Evaluation (2025) based on data from ~23,000 households across 9 states (2019 & 2024) found 9.5% income increase in NRLM blocks; mature community institutions saw 12-33% income rise.
Per capita household consumption increased by 6-11% as per the 3ie study.
NITI Aayog evaluation (2025) rated DAY-NRLM as highly relevant and effective, noting income growth, livelihood diversification, better financial inclusion, women's confidence, and social inclusion.
Ministry uses e-Financial Management and Accounting System (e-FMAS/GramNidhi) integrated with LokOS and PFMS for real-time fund tracking.
619 Community Managed Training Centres (CMTCs) at block level serve as decentralized training hubs.
Community Resource Persons (CRPs) and para-professionals are trained from experienced SHG members for local mentoring.
Digital platform LokOS supports data-driven monitoring and decision-making.
Funds are released to states/UTs based on approved allocation and utilization needs.
Capacity building covers institution building, financial management, livelihoods, governance, social inclusion, digital literacy, and entrepreneurship.
Prelims pointers
- DAY-NRLM: Deendayal Antyodaya Yojana – National Rural Livelihoods Mission
- Ministry: Ministry of Rural Development
- Launched: 2011 (restructured 2015)
- Key platforms: e-FMAS/GramNidhi, LokOS, PFMS
- Community institutions: SHGs, federations, CMTCs, CRPs
- 3ie: International Initiative for Impact Evaluation
- NITI Aayog evaluation (2025)
- Target: rural poor households
- Focus: women empowerment, financial inclusion, livelihood diversification
Mains angles
- GS2: Role of DAY-NRLM in women empowerment and social inclusion – discuss impact and challenges.
- GS3: Poverty alleviation and rural development – evaluate effectiveness of SHG-based models in income generation and financial inclusion.
- GS2: Government schemes and interventions – critically examine the institutional framework and fund management under DAY-NRLM.
- GS3: Inclusive growth – analyze how DAY-NRLM contributes to sustainable livelihoods and reduction of rural poverty.