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Empowerment | Union Budget And Other Economic Policies
Union Budget And Other Economic Policies

Union Budget And Other Economic Policies

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Allocations for various schemes under the Union Budget 2016-17,
(please click here to access)


• Mahatma Gandhi National Rural Employment Guarantee Scheme - Rs. 38,500 crore (BE)

• National Social Assistance Programme - Rs. 9,500 crore (BE)

• Schemes under Tribal Sub-Plan- across all Ministries - Rs. 24,005 crore (BE)

• Schemes under Scheduled Castes Sub-Plan- across all Ministries - Rs. 38,833 crore (BE)

• Allocation for North Eastern Region-across all Ministries - Rs. 33,097 crore (BE)

• Umbrella Scheme for Development of Minorities - Rs. 1,245 crore (BE)

• Green Revolution - Rs. 12,980 crore (BE)

• White Revolution - Rs. 1,273 crore (BE)

• Blue Revolution - Rs. 575 crore (BE)

• Pradhan Mantri Krishi Sinchai Yojana (PMKSY) - Rs. 5717 crore (BE)

• Pradhan Mantri Gram Sadak Yojana - Rs. 19,000 crore (BE)

• National Rural Drinking Water Programme - Rs. 5,000 crore (BE)

• Swachh Bharat Abhiyan (SBA) - Rs. 11,300 crore (BE)

• National Health Mission (NHM) - Rs. 20,037 crore (BE)

• Rashtriya Swastha Suraksha Yojana (RSSY) - Rs. 1,500 crore (BE)

• National Education Mission (NEM) - Rs. 28,010 crore (BE)

• Sarva Shiksha Abhiyan (under the NEM) - Rs. 22,500 crore (BE)

• National Programme of Mid-day Meals in Schools - Rs. 9,700 crore (BE)

• Integrated Child Development Scheme (Umbrella ICDS) - Rs. 16,120 crore (BE)

• Pradhan Mantri Awas Yojana (PMAY) - Rs. 20075 crore (BE)

• Urban Rejuvenation Mission (AMRUT and Mission for Development of 100 Smart Cities) - Rs. 7,296 crore (BE)

• Make in India: Scheme for Investment Promotion and Amended Technology Upgradation Fund Scheme - Rs. 1,804 crore (BE)

• National Industrial Corridors - Rs. 1,448 crore (BE)

• Digital India Programme and E-learning, E-panchayat, Land Records Modernisation - Rs. 2,059 crore (BE)

• Central Pool of Resources for North Eastern Region and Sikkim - Rs. 900 crore (BE)

• Schemes of North Eastern Council - Rs. 795 crore (BE)

• National Investment and Infrastructure Fund - Rs. 4,000 crore (BE)

• Equity Capital to Mudra and Credit Guarantee Fund under Pradhan Mantri Mudra Yojana - Rs. 2,400 crore (BE)

• Start up and stand up - Rs. 1,100 crore (BE)

• Schemes for employment generation - Rs. 1,155 crore (BE)

• Scheme for LPG connection to poor households - Rs. 2,000 crore (BE)

• Deendayal Upadhyaya Gram Jyoti Yojana and Integrated Power Development Scheme(IPDS) - Rs. 8,500 crore (BE)

• Sagarmala - Rs. 450 crore (BE)

• Pradhan Mantri Kaushal Vikas Yojana - Rs. 1,771  crore (BE)

• Metro Projects - Rs. 10,000 crore (BE)

• Namame Gange- National Ganga Plan - Rs. 2,250 crore (BE)

• Rashtriya Yuva Sashakthikaran Karyakram - Rs. 397 crore (BE)

• Khelo India - Rs. 216 crore (BE)

• Recapitilization of Public Sector Banks - Rs. 25,000 crore (BE)
 

Please check the table below for allocations of important Ministries, Sectors and Vulnerable Sections under Union Budget 2016-17

 

Table Union Budget 2016-17

 

According to the Union Budget Speech 2016-17 delivered by Arun Jaitley on 29 February, 2016 (please click here to access):

• Global growth has slowed down from 3.4 percent in 2014 to 3.1 percent in 2015.

• The growth of GDP has accelerated to 7.6 percent. This happened despite the contraction of global exports by 4.4 percent compared to 7.7 percent growth in world exports during the last three years of the previous UPA Government.

• The Consumer Price Index inflation was at 9.4 percent during the last three years of the previous UPA Government. Under the present NDA Government, CPI inflation has come down to 5.4 percent, providing big relief to the public. This was accomplished despite two consecutive years of monsoon shortfall of 13 percent, compared to normal rainfall in the last three years of the previous UPA Government.

• The NDA Government has increased the Plan expenditure at the Revised Estimate (RE) stage in 2015-16 in contrast to the usual practice of reducing it. The Government achieved this despite adopting the Fourteenth Finance Commission recommendations which increased devolution to the states by 55 percent.

• The financial years 2015-16 and 2016-17 have been and will be extremely challenging for Government expenditure. The 14th Finance Commission has reduced the Central share of taxes to 58 percent from the 68 percent.

• In the financial year 2015-16, the NDA Government managed to improve upon the budgeted expenditure due to revenue buoyancy, notwithstanding the steep reduction in the Central share of taxes.

• The next financial year 2016-17 will cast an additional burden on account of the recommendations of the 7th Central Pay Commission and the implementation of Defence One-Rank-One-Pension (OROP).

• The budget proposals are built on the transformative agenda with the following nine distinct pillars:

(i) Agriculture and Farmers’ Welfare: with focus on doubling farmers’ income in five years;

(ii) Rural Sector: with emphasis on rural employment and infrastructure;

(iii) Social Sector including Healthcare: to cover all under welfare and health services;

(iv) Education, Skills and Job Creation: to make India a knowledge based and productive society;

(v) Infrastructure and Investment: to enhance efficiency and quality of life;

(vi) Financial Sector Reforms: to bring transparency and stability;

(vii) Governance and Ease of Doing Business: to enable the people to realise their full potential;

(viii) Fiscal Discipline: prudent management of Government finances and delivery of benefits to the needy; and

(ix) Tax Reforms: to reduce compliance burden with faith in the citizenry.

Agriculture and Farmers' Welfare

• The Government will reorient its interventions in the farm and non-farm sectors to double the income of the farmers by 2022. The total allocation for Agriculture and Farmers’ welfare is Rs. 35,984 crore.

• Irrigation is a critical input for increasing agriculture production and productivity. Out of 141 million hectares of net cultivated area in the country, only 46 percent is covered with irrigation. The ‘Pradhan Mantri Krishi Sinchai Yojana’ has been strengthened and will be implemented in mission mode. 28.5 lakh hectares will be brought under irrigation under this Scheme.

• Implementation of 89 irrigation projects under AIBP, which have been languishing, will be fast tracked. This will help to irrigate 80.6 lakh hectares. These projects require Rs. 17,000 crore next year and Rs. 86,500 crore in the next five years. The Government will ensure that 23 of these projects are completed before 31st March, 2017.

• A dedicated Long Term Irrigation Fund will be created in NABARD with an initial corpus of about Rs. 20,000 crore. To achieve all these, a total provision of Rs. 12,517 crore has been made through budgetary support and market borrowings in 2016-17.

• Simultaneously a major programme for sustainable management of ground water resources has been prepared with an estimated cost of Rs. 6,000 crore and proposed for multilateral funding.

• At least 5 lakh farm ponds and dug wells in rain fed areas and 10 lakh compost pits for production of organic manure will be taken up by making productive use of the allocations under MGNREGA.

• The Soil Health Card Scheme is now being implemented with greater vigour. Through this, farmers get information about nutrient level of the soil and can make judicious use of fertilizers. The target is to cover all 14 crore farm holdings by March 2017. Rs. 368 crore has been provided for National Project on Soil Health and Fertility. Besides, 2,000 model retail outlets of Fertilizer companies will be provided with soil and seed testing facilities during the next three years.

• A policy for conversion of city waste into compost has also been approved by the Government under the Swachh Bharat Abhiyan.

• To increase crop yields in rain fed areas, which account for nearly 55 percent of the country’s arable land, organic farming is being promoted. Towards this end, the Government has launched two important schemes. First, the ‘Parmparagat Krishi Vikas Yojana’ which will bring 5 lakh acres under organic farming over a three year period. Second, the Government has launched a value chain based organic farming scheme called “Organic Value Chain Development in North East Region”. The emphasis is on value addition so that organic produce grown in these parts find domestic and export markets. A total provision of Rs. 412 crore has been made for these schemes.

• Incentives are being given for enhancement of pulses production. Rs. 500 crores under National Food Security Mission has been assigned to pulses. The number of districts covered has been increased to 622.

• A national level competition will be held among 674 Krishi Vigyan Kendras with a total prize money of Rs. 50 lakh to improve the efficiency and performance of these Kendras.

• The Government is implementing the Unified Agriculture Marketing Scheme which envisages a common e-market platform that will be deployed in selected 585 regulated wholesale markets. Amendments to the APMC Acts of the states are a pre-requisite to join this e-platform. 12 states have already amended their APMC Acts and are ready to come on board.

• 97 lakh MT of storage capacity was added to the Central pool stock during the current year.

• The allocations in 2012-13 and 2013-14 were only Rs. 8,885 crore and Rs. 9,805 crore respectively. The NDA has substantially increased the allocation in the last two years and has now allocated Rs. 19,000 crore in 2016-17. Together with States’ share, totally about Rs. 27,000 crore will be spent on this Yojana in 2016-17. The goal is to advance the completion target of the programme from 2021 to 2019 and connect the remaining 65,000 eligible habitations by constructing 2.23 lakh kms of roads. Accordingly, the pace of construction which is currently 100 kms per day, as compared to the average of 73.5 kms during 2011-14, will be substantially stepped up.

• Special focus has been given to ensure adequate and timely flow of credit to the farmers. Against the target of Rs. 8.5 lakh crore in 2015-16, the target for agricultural credit in 2016-17 will be Rs. 9 lakh crore. 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.

• The FM has proposed a sum of Rs. 5,500 crore for the Prime Minister Fasal Bima Yojana in the Budget 2016-17.

• Three specific initiatives will be taken up in 2016-17 so that the benefit of MSP reaches farmers in all parts of the country. First, the remaining States will be encouraged to take up decentralized procurement. Second, an online Procurement System will be undertaken through the Food Corporation of India. This is expected to usher in transparency and convenience to the farmers through prior registration and monitoring of actual procurement. Third, effective arrangements have been made for pulses procurement.

• To make dairying more remunerative to the farmers, four new projects will be taken up: first, the ‘Pashudhan Sanjivani’, an animal wellness programme and provision of Animal Health Cards (‘Nakul Swasthya Patra’); second, an Advanced breeding technology; third, Creation of ‘E-Pashudhan Haat’, an e-market portal for connecting breeders and farmers; and fourth, a National Genomic Centre for indigenous breeds. These projects will be implemented at a cost of Rs. 850 crores over the next few years.

• There has been a visible rise in the yield of honey, from an average of 18 to 20 kg per box per annum in the year 2013-14 to 25 kg per box per annum by 2015-16. The total production of honey in the country has increased from 76,150 metric tonnes in 2014-15 to 86,500 metric tonnes. Nearly 90 percent of the domestic honey is now exported.

Rural Sector

• For rural development as a whole, Rs. 87,765 crore has been allocated.

• A sum of 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. This is a quantum jump of 228 percent compared to the previous five year period. The funds now allocated, translate to an average assistance of over Rs. 80 lakh per Gram Panchayat and over Rs. 21 crore per Urban Local Body. These enhanced allocations are capable of transforming villages and small towns.

• Every block in these distress areas will be taken up as an intensive Block under the Deen Dayal Antyodaya Mission. Formation of Self Help Groups (SHGs) will be speeded up to promote multiple livelihoods. Cluster Facilitation Teams (CFT) will be set up under MGNREGS to ensure water conservation and natural resource management. These districts would also be taken up on priority under Pradhan Mantri Krishi Sinchaii Yojna. A sum of Rs. 38,500 crore has been allocated for MGNREGS in 2016-17.

• 300 Rurban Clusters will be developed under the Shyama Prasad Mukherjee Rurban Mission launched by the Honourable Prime Minister recently. These Clusters will incubate growth centres in rural areas by providing infrastructure amenities and market access for the farmers. They will also expand employment opportunities for the youth.

• As on 1st April, 2015, a total of 18,542 villages were not electrified. The Honourable Prime Minister, in his address to the Nation on 15th August, 2015 announced that the remaining villages will be electrified within the next 1000 days.

• As on 23rd February, 2016, 5542 villages have been electrified. This is more than the total combined achievement of previous three years. The NDA Government is committed to achieve 100 percent village electrification by 1st May, 2018. Rs. 8,500 crore has been provided for Deendayal Upadhayaya Gram Jyoti Yojna and Integrated Power Development Schemes.

• Rs. 9,000 crore has been provided for Swachh Bharat Abhiyan.

• Two Schemes to promote digital literacy have been approved: National Digital Literacy Mission; and Digital Saksharta Abhiyan (DISHA). A new Digital Literacy Mission Scheme will be launched for rural India to cover around 6 crore additional households within the next 3 years.

• The National Land Record Modernisation Programme has been revamped under the Digital India Initiative and will be implemented as a Central sector scheme with effect from 1st April, 2016. The revamped Programme will build an integrated land information management system. Rs. 150 crore has been provided for this purpose.

• Panchayat Raj Institutions need to develop governance capabilities to deliver on the Sustainable Development Goals. Therefore, a new restructured scheme, namely, Rashtriya Gram Swaraj Abhiyan, will be launched for which Rs. 655 crore is being set apart in 2016-17.

Social Sector including Health Care

• A sum of Rs. 2,000 crore in this year’s Budget has been set aside to meet the initial cost of providing LPG connections to women members of poor households. This is expected to benefit about 1 crore 50 lakh households below the poverty line in 2016-17. The Scheme will be continued for at least two more years to cover a total of 5 crore BPL households.

• In order to help poor families, the Government will launch a new health protection scheme which will provide health cover up to Rs.One lakh per family. For senior citizens of age 60 years and above belonging to this category, an additional top-up package up to Rs. 30,000 will be provided.

• The NDA Government will reinvigorate the supply of generic drugs. 3,000 Stores under Prime Minister’s Jan Aushadhi Yojana will be opened during 2016-17.

• A ‘National Dialysis Services Programme’. Funds will be made available through PPP mode under the National Health Mission, to provide dialysis services in all district hospitals.

• The Union Cabinet has approved the “Stand Up India Scheme” to promote entrepreneurship among SC/ST and women. Rs. 500 crore has been provided for this purpose. The Scheme will facilitate at least two such projects per bank branch, one for each category of entrepreneur. This will benefit at least 2.5 lakh entrepreneurs.

• It is proposed to constitute a National Scheduled Caste and Scheduled Tribe Hub in the MSME Ministry in partnership with industry associations. This Hub will provide professional support to Scheduled Caste and Scheduled Tribe entrepreneurs to fulfil the obligations under the Central Government procurement policy 2012, adopt global best practices and leverage the Stand Up India initiative.

• The schemes for welfare and skill development for Minorities such as Multi-sectoral Development Programme and USTAAD shall be implemented effectively.

Education, Skills and Job Creation

- Education

• An increasing share of allocation under Sarva Shiksha Abhiyan will be allocated for universalization of primary education. Further, 62 new Navodaya Vidyalayas will be opened in the remaining uncovered districts over the next two years.

• An enabling regulatory architecture will be provided to ten public and ten private institutions to emerge as world-class Teaching and Research Institutions.

• A Higher Education Financing Agency (HEFA) with an initial capital base of Rs. 1,000 crores will be set up. The HEFA will be a not-for-profit organisation that will leverage funds from the market and supplement them with donations and CSR funds.

• It is proposed to establish a Digital Depository for School Leaving Certificates, College Degrees, Academic Awards and Mark sheets, on the pattern of a Securities Depository.

- Skill Development

• In order to set up 1500 Multi Skill Training Institutes across the country, Rs. 1,700 crore will be set aside.

• The FM proposed to scale up Pradhan Mantri Kaushal Vikas Yojna to skill one crore youth over the next three years.

• Entrepreneurship Education and Training will be provided in 2200 colleges, 300 schools, 500 Government ITIs and 50 Vocational Training Centres through Massive Open Online Courses.

- Job Creation

• A National Career Service was launched in July, 2015. Already 35 million jobs seekers have registered on this platform. The FM proposed to make 100 Model Career Centres operational by the end of 2016-17 and also proposed to inter-link State Employment Exchanges with the National Career Service platform.

• In order to incentivize creation of new jobs in the formal sector, Government of India will pay the Employee Pension Scheme contribution of 8.33% for all new employees enrolling in EPFO for the first three years of their employment.

Infrastructure and Investment

• In the road sector, there were more than 70 projects that were languishing at the beginning of the year, due to legacy factors. Aggregate length of these projects was about 8,300 kms involving more than Rs. 1 lakh crore investment. With exemplary and proactive interventions, nearly 85 percent of these projects have been put back on track.

• An allocation of Rs. 55,000 crore in the Budget for Roads and Highways is proposed. This will be further topped up by additional Rs. 15,000 crore to be raised by NHAI through bonds. Thus the total investment in the road sector, including PMGSY allocation, would be Rs. 97,000 crore during 2016-17.

• Together with the capital expenditure of the Railways, the total outlay on roads and railways will be Rs. 2,18,000 crore in 2016-17.

• The total outlay for infrastructure in BE 2016-17 stands at Rs. 2,21,246 crore.

• The Sagarmala project has already been rolled out. The work on the National Waterways is being expedited. Rs. 800 crore has been provided for these initiatives.

• Government is drawing up a comprehensive plan, spanning next 15 to 20 years, to augment the investment in nuclear power generation. Budgetary allocation up to Rs. 3,000 crore per annum, together with public sector investments, will be leveraged to facilitate the required investment for this purpose.

• To augment infrastructure spending further, Government will permit mobilisation of additional finances to the extent of Rs. 31,300 crore by NHAI, PFC, REC, IREDA, NABARD and Inland Water Authority through raising of Bonds during 2016-17.

• There are about 160 airports and air strips with State Governments which can be revived at an indicative cost of Rs. 50 crore to Rs. 100 crore each. The Central Government will partner with the State Governments to develop some of these airports for regional connectivity. Similarly, 10 of the 25 non-functional air strips with the Airport Authority of India will also be developed.

 

Please click here to access the Highlights of the Union Budget 2016-17.

Rural Expert


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