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 in 2015-16 – 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 OROP.
ROADMAP & PRIORITIES
‘Transform India’ to have a significant impact on economy and lives of people.
Government to focus on –
- ensuring macro-economic stability 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 in PPP 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 3 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 ` 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 BE 2016-17 towards interest subvention
Allocation under Prime Minister Fasal Bima Yojana ` 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 – ` 87,765 crore.
` 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 ` 38,500 crore allocated for MGNREGS.
300 Rurban Clusters will be developed under the Shyama Prasad 4 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 Abhiyan proposed with allocation of ` 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 additional top-up package up to ` 30,000 will be provided.
3,000 Stores under Prime Minister’s Jan Aushadhi Yojana will be opened during 2016-17.
‘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 5 Gobind Singh.
EDUCATION, SKILLS AND JOB CREATION
62 new Navodaya Vidyalayas will be opened
Sarva Shiksha Abhiyan to increasing focus 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-up with 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 – ` 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
JOB CREATION
GoI will pay contribution of 8.33% for of all new employees enrolling in EPFO for the first three years of their employment. Budget provision of ` 1000 crore for this scheme.
Deduction under Section 80JJAA of the Income Tax Act will be available to all assesses who are subject to statutory audit under the Act
100 Model Career Centres to operational by the end of 2016-17 under National Career Service.
Model Shops and Establishments Bill to be circulated to States.