Budget 2016-17 Budget Made Simple Page 1 Budget 2016-17 (There are three parts in this document about budget: (A) Budgetary schemes, programmes and measures (B) Key concepts and (C) Helpline.) Macroeconomic Environment India remains the bright spot in a recession hit global economy where volatility is the norm. The present turbulent global economic conditions require careful economy management. First of all, India must strengthen firewall against global economy induced risks by ensuring macroeconomic stability and prudent fiscal management. Second, since foreign markets are weak, we must rely on domestic demand and markets to ensure that growth does not slow down. Thirdly we must continue the pace of economic reforms and policy initiatives to benefit the poor. For the central government, the 14 th FC suggested enhancement of state share in central resources to 68% has reduced availability of funds. Similarly, the financial burden of the seventh pay commission’s recommendations along with the implementation of OROP in defence adds to fiscal tightness of the government. Transforming India 1 The agenda for the government in the next year is transforming India by following a nine pillar approach. These areas include agriculture, infrastructure, social sector and taxation among several others. The Nine pillars are: 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;
Budget 2016-17 Budget Made Simple Page 2 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. A. Budget Schemes, Programmes and Reform Measures I. Agriculture and Farmer’s Welfare Income security to farmers is as important as food security. Total allocation for Agriculture and Farmers’ welfare is Rs 35,984 crore. Irrigation Out of 141 million hectares of net cultivated area in the country, only 46% is covered with irrigation. The Pradhan Mantri Krishi Sinchai Yojana 2 will be strengthened by covering 28.5 hectares. Accelerated irrigation Benefit Programme will be scaled up to irrigate 80.6 lakh hectares. Accelerated Irrigation Benefit Scheme (AIBP): Implementation of 89 irrigation projects under AIBP will be fast tracked. This will help to irrigate 80.6 lakh hectares.
You've reached the end of your free preview.
Want to read all 37 pages?
- Winter '15
- Government, rs