Union Budget 2016-17

The FM claimed that Indian growth is at an extraordinary high, even with a slowdown in exports. India continues to shine despite the worldwide economic gloom with growth expanding by 7.5 percent and robust foreign exchange. Inflation has also come down in spite of two poor monsoons.

Highlights of the Budget:

The 20160-17 Budget identifies 9 pillars that the government plans to focus on to bring about the winds of change throughout India, with a focus on the rural sector. Here are the highlights:

Agriculture and farmer welfare with an aim to double farmers’ income in the next five years

(Total allocation – 35,984 crores)

• A dedicated, long-term irrigation fund to be set up under NABARD with an initial corpus of about Rs 20,000 crore
• Organic farming to get a big push with the government aiming to double the income of farmers by 2022. 5 lakh acres to be brought under organic farming over a three-year period
• ‘Pradhan Mantri Krishi Sinchai Yojana’ to be implemented in mission mode. 28.5 lakh hectares will be brought under irrigation.
• Implementation of 89 irrigation projects under AIBP, which have been in the pipeline for a long time, will be fast tracked.
• Programme for the sustainable management of ground water resources with an estimated cost of Rs 6,000 crore will be implemented through multilateral funding.
• 5 lakh farm ponds and wells in rain fed areas and 10 lakh compost pits for production of organic manure will be taken up under MGNREGA.
• Soil Health Card scheme will cover all 14 crore farm holdings by March 2017.
• 2,000 model retail outlets of Fertilizer companies will be provided with soil and seed testing facilities during the next three years.
• Organic farming through ‘Parmparagat Krishi Vikas Yojana’ and ‘Organic Value Chain Development in North East Region’ to be promoted.
• Unified Agricultural Marketing ePlatform to provide a common e- market platform for wholesale markets.
• Allocation under Pradhan Mantri Gram Sadak Yojana increased to Rs 19,000 crore. Will connect remaining 65,000 eligible habitations by 2019.
• To reduce the burden of loan repayment on farmers, a provision of Rs 15,000 crore has been made in the BE 2016-17 towards interest subvention.
• Allocation under Prime Minister Fasal Bima Yojana Rs 5,500 crore to provide insurance coverage and financial support to farmers.
• Rs 850 crore for four dairying projects – ‘Pashudhan Sanjivani’, ‘Nakul Swasthya Patra’, ‘E-Pashudhan Haat’ and National Genomic Centre for indigenous breeds.

Rural sector

(Allocation for rural sector – Rs 87,765 crore.)

• Rs 2.87 lakh crore will be given as Grant in Aid to Gram Panchayats and Municipalities as per the recommendations of the 14th Finance Commission.
• Every block under drought and rural distress will be taken up as an intensive Block under the Deen Dayal Antyodaya Mission.
• A sum of Rs 38,500 crore allocated for MGNREGS.
• 300 Rurban Clusters will be developed under the Shyama Prasad Mukherjee Rurban Mission.
• 100 per cent village electrification by 1st May, 2018.
• District Level Committees under Chairmanship of senior most Lok Sabha MP from the district for monitoring and implementation of designated Central Sector and Centrally Sponsored Schemes.
• Priority allocation from Centrally Sponsored Schemes to be made to reward villages that have become free from open defecation.
• A new Digital Literacy Mission Scheme for rural India to cover around 6 crore additional household within the next 3 years.
• National Land Record Modernisation Programme has been revamped.
• New scheme Rashtriya Gram Swaraj Abhiyan proposed with allocation of Rs 655 crore.