Question

How are funds allocated under IAY decided?

• A. Based on population density
• B. Based on literacy rates
• C. Based on poverty ratio and housing shortage
• D. Based on industrial growth

Answer 1

Answer:

C. Based on poverty ratio and housing shortage

Indira Awaas Yojana (IAY) Fund Allocation:

• The allocation of funds under the Indira Awas Yojana (IAY) is primarily determined by two key factors:

  • Poverty Ratio: States with a higher proportion of poor households are allocated a larger share of the funds. This ensures that resources are directed towards areas facing greater economic hardship.

  • Housing Shortage: The extent of the housing deficit in a state also plays a crucial role. States with a more significant number of families lacking adequate housing receive a greater allocation.

• This allocation methodology aims to achieve equitable distribution of resources and effectively address the housing needs of the most vulnerable sections of society across different states.

• IAY was a major scheme for rural housing in India, launched in 1985 as part of the Rajiv Gandhi administration's efforts to improve housing for the poor.

• The scheme was later integrated into the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) in 2016.