BUDGET 2016-17
Union government presented its second full budget in the parliament on 29th feb 2015. This year’s budget gives special emphasis for the development of rural India. Although India has to go through various external challenges but still India is fastest growing major economy in the world. Budget continued the path setup in last budget of improving the fiscal discipline and making legislative and tax reforms. This was the first budget presented after recommendation of pay commission has been accepted and also government has implemented One rank one pension for Armed forces. This will provide additional burden on the government finances. However government has nicely maintained its fiscal discipline. Along with rural economy government’s focus on improving the infrastructure of the country has continued from last year’s budget.
Important decisions of budget are given below sector wise:
Rural Economy
- Allocation of 5500 crore under PM fasal Bima yojana. 28.5 lakh hectares will be brought under irrigation under Pradhan Mantri Krishi Sinchai Yojana.
- 15000 crore allocation for interest subvention to reduce burden of loan repayments.
- Soil health card to cover all the land holdings.
- Unified Agricultural marketing platform for wholesale markets.
- Farmer’s income to be doubled by 2022.
- Dedicated Long Term Irrigation Fund will be created in NABARD with initial corpus of Rs. 20,000 crore.
- Rs. 9 lakh crore will be given as Agricultural credit in 2016-17.
- FCI will undertake online procurement of food grains. This will bring transparency and convenience to farmers through prior registration and monitoring of procurement.
- R. 2.87 lakh crore will be given as Grant in Aid to Gram Panchayats and Municpalities as per the recommendations of the 14th FC. This translates to Rs. 81 lakh per gram panchayat and over Rs. 21 crore per Municipality.
- Every Block in drought and rural distress areas will be taken up under Deen Dayal Antoyodaya Mission.
- 300 Rurban Clusters will incubate growth Centres in Rural Area.
- MUDRA – Loan target of 1,80,000 crore in 2016-17.