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BUDGET 2016-17: Civil Services Mentor Magazine - May - 2016

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.

Social Sector

Massive Mission to provide LPG connection to poor households will be launched. 1.5 crore poor households will benefit in 2016-17. Scheme will continue for two more years to cover a total of 5 crore BPL households. LPG connection to be given in the name of woman member of the family.
New Health Protection scheme will be launched. Health cover up to Rs. 1 lakh per family and additional Rs. 30,000 for senior citizens to be provided.
A new Eco System for SC/ST entrepreneurs will be set up. SC/ST Hub to be set up in MSME Ministry.

Education

An enabling regulatory architecture will be provided to 10 public and 10 private institutions to emerge as world class teaching and research institutions.
Higher Education Financing Agency will be set up with an initial capital base of Rs. 1,000 crore.

Skills

1500 Multi Skill Training Institutes will be set up under Pradhan Mantri Kaushal Vikas Yojana
Entrepreneurship education and training will be provided in 2200 colleges, 300 schools, 500 govt. it is and 50 vocational training centres through open online courses.
Government of India will pay EPS contribution of 8.33% for all new employees enrolling in EPFO for the first three years of employment. Applicable to those with salaries of Rs. 15,000 per month
Interlinking of State Employment Exchanges with National Career Service Platform.
Small and medium shops to be permitted to remain open all 7 days a week on voluntary basis. New jobs in retail sector.

Infrastructure Development

Rs. 2,18,000 crore will be spent on capital expenditure of roads and railways in 2016-17. This Includes: Rs. 27,000 crore PMGSY, 55,000 crore Road Transport and highway, 15,000 crore NHAI Bonds, 1,21,000 crore Railways.
Unserved and underserved airstrips to be revived by AAI and also in partnership with State Governments.
Road transport sector (passenger segment) to be opened up by removing permit system. This is a major reform measure.
To promote private participation in infrastructure projects, Public Utility (Resolution of Disputes) Bill will be introduced.
For the benefit of farmers, 100% FDI through FIPB route will be permitted for marketing of food products, produced and manufactured in India.
Individual units of CPSEs can be disinvested to raise resources for investment in new projects.