Budget 2016 - points relevant to #EastWestInterConnect Rural Initiatives in the NER

(Preliminary Points - subject to some corrections) 

Rs.33,097 crore allocated for Northeast development 

• An amount of Rs.33,097 crore has been allocated for development of North-eastern Region in the Union Budget which included a special fund of Rs.412 crore for promotion of organic farming. 
• Presenting the Union Budget 2016-17, Finance Minister Arun Jaitley said Rs.33,097 crore has been earmarked for North-eastern Region across all ministries. 
• The Budget allocated Rs.2,430.01 crore to the Ministry of Development of North-eastern Region, of which Rs.2,400 crore is under plan and Rs.30.01 crore under non-plan heads. 
• Rs.223 crore has been allocated for livelihood, skill and capacity building of the rural population. The project is proposed to be funded through the World Bank. 
• Rs.300 crore has been given for the North-east Road Sector Development Scheme for meeting the expenditure of the project management unit to facilitate implementation of ADB-assisted North-east Road Project. 
• The Finance Minister said the government has launched a value chain-based organic farming scheme, called ‘Organic Value Chain Development in North Eastern Region’. “The emphasis is on value addition so that organic produce grown in these parts finds domestic and export markets. A total provision of Rs.412 crore has been made for these schemes,” he said. 
• Rs.900 crore has been allocated under the Central Pool of Resources for North Eastern Region, including Sikkim, while Rs.795 has been given for implementation of various development schemes of the North-eastern Council. 
• Besides, clean energy cess or clean environment cess on coal, lignite or peat, produced or extracted as per traditional and customary rights enjoyed by tribals without any licence or lease in Nagaland has been completely exempted. 
• Applicable excise duty for such work is chargeable at Rs.200 per tonne. 

Other Points

• Krishi Kalyan Cess to be imposed on all taxable services for agricultural sector
• Incentives for new manufacturing companies and relatively small enterprise companies
• Aadhar Bill to be introduced in current session of parliament
• Public Money should reach the poor and deserving without any leakage
• An increased allocation of Rs 1,80,000 Crores under PM MUDRA Yojana
• Total outlay for infrastructure Rs. 2,21,246 crores in 2016/17
• Expect to award 10,000 km of National highway construction projects in 2016
• Total Investment In Roads Sector At Rs. 97,000 Cr
• Allocate Rs 55,000 Crores for roads and highways, total investment in Road Sector would be Rs 97,000 crore
• Model Shops and Establishments Bill to be circulated, for voluntary adoption by states
• Rs 2.87 lakh crore will be given as grant in aid to gram panchayats, municipalities: FM
• 3000 drug stores to be opened under PM Aushadhi Yojana
• Senior citizens will get additional healthcare cover of Rs 30,000 under the new scheme
• Govt to provide health insurance of upto Rs 1 lakh for each family
• 62 new Navodya Vidyalayas to be opened in uncovered districts under Sarva Siksha Abhiyaan
• A higher education financing agency to be setup with initial capital of Rs. 1000 crore
• A Digital Depository to be established which will be a One-stop place for all education related e-certificates
• SC/ST Hub to be constituted under MSME Ministry to encourage SC/ST entrepreneurship
• Decided to set up 1500 multi-skilled training institutes in the country; Rs. 1700 crore allocated for this initiative
• Cabinet has approved Stand Up India scheme. Rs. 500 crore has been provided
• To launch new health protection scheme for weaker section of society  
• Rs 87,765 crores allocated for rural development
• Rs 2000 rs towards LPG connections to Women from BPL families
• Quantum jump of 228% in grants to gram panchayats and urban local bodies in accordance with FFC recommendations
• 100 village electrification to be achieved by 1st May, 2018
• Rs 9,000 crores allocated to Swaccha Bharat Abhiyaan
• Digital Literacy Mission Scheme to be implemented in Rural areas
• 5542 villages have been electrified till Feb 23rd, 2016, to achieve 100% village electrification till May 1st, 2018
• Special focus has been given on timely credit to farmers
• A sum of Rs. 38,500 has been allocated to MNREGA. Will be the highest amount spent on NREGA
• Allocation to PM Fasal Bima Yojana for 2016/17 is Rs. 5,500 crores
• 65 eligible habitats to be connected via 2.23 lakh kms of road. Current construction pace is 100 kms per day   
• 5 lakh acres to be brought under organic farming over a three year period
• Nominal premium and highest ever compensation in case of crop loss under the PM Fasal Bima Yojana
• Farm, rural sector, infra, social sector to have more Government expenditure
• To spend Rs 170 bn by next year, Rs 865 bn over 5 years to boost irrigation   
• Propose Rs 5,500 Cr For Crop Insurance Scheme For FY17
• Allocation of Pradhanmatri Gram Sadak Yojna to be increased to 19,000 Crore
• Govt is launching a new initiative to provide cooking gas to BPL families with state support.
• Next financial year will cast an additional burden due to implementation of 7th Pay Commission and OROP
• Grateful to our farmers. Aim to double farmers’ income by 2022, ie. in five years
• Nominal premium and highest ever compensation in case of crop loss under the PM
• Rs. 27,000 crs for roads project for 2.23 lac kms of roads
• 28 lakh hectares will be brought under the new farm irrigation plan
• Rs. 500 Cr Assigned To Pulse Production
• Rs. 35,984 crores total allocation for farmers' welfare
• A long-term irrigation fund will be crated at Nabard. Corpus of Rs. 20,000 crore
• Pradhanmantri Krishi Sinchaai Yojna stregthened and implemented in Mission Mode
• World Economic Forum says India’s growth is extraordinary
• Budget proposal is a transformative agenda based on 9 pillars. The nine priority areas of the government are: 

1. Agriculture and farmer welfare
2. Rural sector
3. Social sector
4. Education skills and job creation
5. Infrastructure investment
6. Financial sector reforms
7. Governance reforms and ease of doing business
8. Fiscal discipline
9. Tax reforms to reduce compliance burden

• Emphasis on Entrepreneurship Development 
• 300 Rurban Centres to be set up
• Increased outlay for social sector programs
• Increase expenditure on infra, rural development and bank recapitalization
• Belief in the principle that money with the government belongs to the people
• The growth of GDP has accelerated to 7.6% 
• Inflation Has Been Under Control Despite 2 Failed Monsoons
• Presenting the budget when the global economy is in a serious crisis
• Global slowdown from 3.9% to 3.1% in 2015
• Against all headwinds, Indian economy has held ground firmly

Hon Finance Minister Shri. Arun Jaitley in Parliament 

Please see this in the context of www.eastwestinterconnect.org.in and recent public address on 13-Feb-16  http://bit.ly/dne2016_start_pdf and http://bit.ly/dne2016_start