29/02/2016
Key Features of Budget 2016-2017
INTRODUCTION
▪ Growth of Economy accelerated to 7.6% in 2015-16.
▪ India hailed as a ‘bright spot’ amidst a slowing global economy by IMF.
▪ Robust growth achieved despite very unfavourable global conditions and two consecutive years shortfall in monsoon by 13%
▪ Foreign exchange reserves touched highest ever level of about 350 billion US dollars.
▪ Despite increased devolution to States by 55% as a result of the 14th Finance Commission award, plan expenditure increased at RE stage in2015-16– in contrast to earlier years.
CHALLENGES IN 2016-17
▪ Risks of further global slowdown and turbulence.
▪ Additional fiscal burden due to 7th Central Pay Commission recommendations and ORO
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ROADMAP & PRIORITIES
▪ ‘Transform India’ to have a significant impact on economy and lives of people.
▪ Government to focus on –
▪ ensuring macro-economicstability and prudent fiscal management.
▪ boosting on domestic demand
▪ continuing with the pace of economic reforms and policy initiatives to change the lives of our people for the better.
▪ Focus on enhancing expenditure in priority areas of – farm and rural sector, social sector, infrastructure sector employment generation and recapitalisation of the banks.
▪ Focus on Vulnerable sections through:
▪ Pradhan Mantri Fasal Bima Yojana
▪ New health insurance scheme to protect against hospitalisation expenditure
▪ facility of cooking gas connection for BPL families
▪ Continue with the ongoing reform programme and ensure passage of the Goods and Service Tax bill and Insolvency and Bankruptcy law
▪ Undertake important reforms by:
▪ giving a statutory backing to AADHAR platform to ensure benefits reach the deserving.
▪ freeing the transport sector from constraints and restrictions
▪ incentivising gas discovery and exploration by providing calibrated marketing freedom
▪ enactment of a comprehensive law to deal with resolution of financial firms
▪ provide legal framework for dispute resolution and re-negotiations inPPP projects and public utility contracts
▪ undertake important banking sector reforms and public listing of general insurance companies undertake significant changes in FDI policy.
AGRICULTURE AND FARMERS’ WELFARE
▪ Allocation for Agriculture and Farmers’ welfare is ` 35,984 crore
▪ ‘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 are languishing for a long time, will be fast tracked
▪ A dedicated Long Term Irrigation Fund will be created in NABARD with an initial corpus of about ` 20,000 crore
▪ Programme for sustainable management of ground water resources with an estimated cost of ` 6,000 crore will be implemented through multilateral funding
▪ 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 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
▪ Promote organic farming through ‘Parmparagat Krishi Vikas Yojana’ and ‘Organic Value Chain Development in North East Region’.
▪ 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 `15,000 crore has been made in the BE2016-17towards interest subvention
▪ Allocation under Prime Minister Fasal Bima Yojana Rs. 5,500 crore.
▪ ` 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 Blockunderthe Deen Dayal Antyodaya Mission
▪ A sum of ` 38,500 crore allocated for MGNREGS.
▪ 300 Rurban Clusters will be developed under the Shyama Prasad Mukherjee Rurban Mission
▪ 100% 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 Abhiyanproposed with allocation of Rs.655 crore.
SOCIAL SECTOR INCLUDING HEALTH CARE
▪ Allocation for social sector including education and health care –`1,51,581 crore.
▪ ` 2,000 crore allocated for initial cost of providing LPG connections to BPL families.
▪ New health protection scheme will provide health cover up to ` One lakh per family. For senior citizens an additionaltop-uppackage up to` 30,000 will be provided.
▪ 3,000 Stores under Prime Minister’s Jan Aushadhi Yojana will be openedduring2016-17.
▪ ‘National Dialysis Services Programme’ to be started under National Health Mission through PPP mode
▪ “Stand Up India Scheme” to facilitate at least two projects per bank branch. This will benefit at least 2.5 lakh entrepreneurs.
▪ National Scheduled Caste and Scheduled Tribe Hub to be set up in partnership with industry associations
▪ Allocation of ` 100 crore each for celebrating the Birth Centenary of Pandit Deen Dayal Upadhyay and the 350th Birth Anniversary of Guru Gobind Singh.
EDUCATION, SKILLSAND JOB CREATION
▪ 62 new Navodaya Vidyalayas will be opened
▪ Sarva Shiksha Abhiyan to increasingfocus on quality of education
▪ Regulatory architecture to be provided to ten public and ten private institutions to emerge as world-class Teaching and Research Institutions
▪ Higher Education Financing Agency to be set-upwith initial capital base of` 1000 Crores
▪ Digital Depository for School Leaving Certificates, College Degrees, Academic Awards and Mark sheets to be set-up.
SKILL DEVELOPMENT
▪ Allocation for skill development– Rs. 1804 crore.
▪ 1500 Multi Skill Training Institutes to be set-up.
▪ National Board for Skill Development Certification to be setup in partnership with the industry and academia
▪ Entrepreneurship Education and Training through Massive Open Online Courses
