Don’t miss the latest developments in business and finance.

Budget: Nuts & Bolts

Image
Business Standard
Last Updated : Jan 20 2013 | 10:14 PM IST

Boost to infrastructure for urban poor
Allocation for Jawaharlal Nehru National Urban Renewal Mission is being stepped up by 87 per cent to Rs 12, 887 crore. To improve the lot of the urban poor, the Budget allocated for housing and provision of basic amenities is being increased to Rs 3,973 crore. This includes the provision for Rajiv Awas Yojana, a new scheme announced by the President of India.

This scheme, the parameters of which are being worked out, is intended to make the country slum-free in the next five years.

Budget for Mumbai floods
To address the problem of flooding in Mumbai, Brihan Mumbai Storm Water Drainage Project was initiated in 2007. The cost of the project is about Rs 1,200 crore. The project is being funded through Central assistance. Up until 2008-09, a sum of Rs 500 crore was released for this project. The provision for this project is being enhanced from Rs 200 crore in Interim BE to Rs 500 crore to expedite its completion.

More money for power scheme
Allocation for the Accelerated Power Development and Reform Programme (APDRP) — an important scheme for reducing the gap between power demand and supply — is being increased to Rs 2,080 crore, a steep rise of 160 per cent from Rs 2,080 crore which was the budget estimate of 2008-9.

Blueprint for National Gas Grid
There’s a proposal to develop a blueprint for long-distance gas highways leading to a National Gas Grid. This would facilitate transportation of gas across the length and breadth of the country.

Task force for farmers
A special task force is being set up to examine and provide a course of action for farmers in some regions of Maharashtra. A large number of farmers had taken loans from private money lenders and the loan waiver scheme did not cover them.

Push to irrigation
The additional Rs 1,000 crore for the Accelerated Irrigation Benefit Programme (AIBP) marks a 75 per cent increase in allocation over the 2008-09(BE). The allocation for the Rashtriya Krishi Vikas Yojna (RKVY) is also being stepped up by 30 per cent over Budget Estimate of 2008-09.

More From This Section

More funds to micro enterprises
The Budget provides for a special fund out of Rural Infrastructure Development Fund (RIDF) to Small Industries Development Bank (SIDBI). This fund of Rs 4,000 crore will incentivise Banks and State Finance Corporations (SFCs) to lend to Micro and Small Enterprises (MSEs) by refinancing 50 per cent of incremental lending to MSEs during the current financial year.

Stimulus for the print media
In February 2009, the print media was given a stimulus package comprising waiver of 15 per cent agency commission on DAVP advertisements and a 10 per cent increase in the DAVP rates to be paid as a ‘special relief’ subject to documentary proof of loss of revenue in non-governmental advertisements. The stimulus package has now been extended for another six months to December 31, 2009.

Boost to Bharat Nirman
Allocation for Bharat Nirman is being upped by 45 per cent in 2009-10 over 2008-09. Bharat Nirman, with its six schemes, is an important initiative for bridging the gap between the rural and urban areas and improving the quality of life of people, particularly the poor in rural areas. The outlay for the Pradhan Mantri Gram Sadak Yojana (PMGSY), one of the most successful programmes under Bharat Nirman, is being increased by 59 per cent over BE 2008-09 to Rs 12,000 crore. Meanwhile, an allocation of Rs 7,000 crore to Rajiv Gandhi Grameen Viduytikaran Yojana (RGGVY) means a 27 per cent increase for the scheme.

Funds for rural housing
Money allocated for Indira Awaas Yojana (IAY) will be increased by 63 per cent to touch Rs 8,800 crore. To speed up rural housing, the government will allocate Rs 2,000 crore for Rural Housing Fund in the National Housing Bank (NHB). This will boost the resource base of NHB for their refinance operations in rural housing sector.

Scheme for SC
A new scheme is being launched to cater to 44,000 villages in which the population of scheduled castes is above 50 per cent. Christened the Pradhan Mantri Adarsh Gram Yojana (PMAGY), the scheme will be kick-started on a pilot basis for the integrated development of 1,000 such villages. An allocation of Rs 100 crore is being made for this scheme and each village will be able to avail gap-funding of Rs 10 lakh over and above the allocations under the Rural Development and Poverty Alleviation Schemes. On successful implementation of the pilot, the Yojana will be extended in coming years.

Poverty eradication
The Swarna Jayanti Gram Swarozgar Yojna (SGSY) is being restructured as the National Rural Livelihood Mission to make it universal in application, focused in approach and time-bound for poverty eradication by 2014-15. Formation of women Self Help Groups (SHGs) will be stressed.

Women's groups
The objective is to enroll at least 50 per cent of all rural women in India as members of Self-Help Groups (SHG) over the next five years and link them to banks. Today there are over 22 lakh such groups linked with banks.

Education loans for the poor
To enable students from the economically weaker sections to access higher education, there's a proposal to introduce a scheme to provide them full-interest subsidy during the period of moratorium. It will cover loans taken by such students from scheduled banks to pursue any of the approved courses in technical and professional streams from recognised institutions in India . It is estimated that over five lakh students would avail of this benefit.

Outlay for minorities enhanced
Plan outlay for the Ministry of Minority Affairs will be enhanced from Rs 1,000 crore to Rs1,740 crore in 2009-10, registering an increase of 74 per cent. This includes Rs 990 crore for Multi-Sectoral Development Programme for Minorities in select minority concentration districts, the grants-in-aid to Maulana Azad Education Foundation, provisions for National Minorities Development and Finance Corporation and the pre-matric and post-matric scholarships for minorities. Allocations have also been made for the new schemes of National Fellowship for Students from the Minority Community and Grants-in-aid to Central Wakf Council for computerization of records of State Wakf Boards.

Schemes for unorganised workers
Social security schemes will be initiated for weavers, fishermen, toddy tappers, leather and handicraft workers, plantation labour, construction labour, mine workers, beedi workers and rickshaw pullers. Necessary financial allocations will be made for these schemes. The Unorganised Workers Social Security Bill, 2007 has already been passed by both Houses of Parliament.

Employment exchanges under PPP
The government will launch a new project for modernisation of the Employment Exchanges in public-private partnership so that a job seeker can register online from anywhere. Under the project, a national web portal with common software will be developed. This will contain all the data regarding availability of skilled persons on the one hand and requirements of skilled persons by the industry on the other.

Clusters for handlooms
There's a plan to set one handloom mega cluster each in West Bengal and Tamil Nadu and one powerloom mega cluster in Rajasthan. In addition, new mega clusters for carpets in Srinagar (J&K) and Mirzapur (UP) will be added.

Fillip to rural health
The plan is to increase allocation of the National Rural Health Mission by Rs 2,057 crore over and above the Rs.12,070 crore provided in the Interim Budget.

Funding climate change
More funds have been promised for eight missions under the National Action Plan on Climate Change, which was unveiled last year. Besides, the allocation for the National Ganga River Basin Authority and the National River and Lake Conservation Plan has been increased from Rs 335 crore (BE 2008-09) to Rs 562 crore (BE 2009-10). The Budget also exempts petro-diesel blended with biodiesel from excise duty.

Health cover for BPL families
Allocation for the Rashtriya Swasthya Bima Yojana (RSBY) which was started last year is being increased by 40 per cent to Rs 350 crore. More than 46 lakh Below Poverty Line (BPL) families in 18 States and Union Territories have been issued biometric smart cards. This scheme empowers poor families by giving them freedom of choice for using health care services from an extensive list of hospitals including private hospitals. Government proposes to bring all BPL families under this scheme.

Flora, fauna, habitat
A special one-time grant of Rs100 crore to the Indian Council of Forestry Research and Education, Dehradun, has been made in recognition of its excellence in the field of research, education and extension. Also, an allocation of Rs15 crore each for the Botanical Survey of India and Zoological Survey of India, and an additional amount of Rs15 crore to the Geological Survey of India.

Grant for Nandan Nilekani
An allocation of Rs 120 crore has been made for the Unique Identification Authority of India (UIDAI), as step towards improving governance with regard to delivery of public services. The UIDAI will set up an online data base with identity and biometric details of Indian residents and provide enrolment and verification services across the country. The first set of unique identity numbers will be rolled out in 12-18 months.

Ex-servicemen pension up
The report of the Committee headed by the Cabinet Secretary on One Rank One Pension (OROP) has been accepted. On the basis of these recommendations, the Government has decided to substantially improve the pension of pre 1.1.2006 defence pensioners below officer rank (PBOR) and bring pre 10.10.1997 pensioners on par with post 10.10.1997 pensioners. Both these decisions will be implemented from 1st July 2009 resulting in enhanced pension for more than 12 lakh jawans and JCOs. These measures will cost the exchequer more than Rs.2, 100 crore annually. Certain pension benefits being extended to war wounded and other disabled pensioners are also being liberalised.

Reading gains
The allocation for the Mission in Education has been substantially increased to Rs 900 crore. The provision for setting up and/or upgrading of polytechnics under the Skill Development Mission has been increased to Rs 495 crore. The government will take forward its intent of having one Central university in each uncovered State, and for this purpose has allocated Rs 827 crore.

Money for IITs, NITs
There is an allocation of Rs 2,113 crore for IITs and NITs, which includes a provision of Rs 450 crore for new IITs and NITs. A special allocation of Rs 50 crore for Punjab University has been made to provide better infrastructure.

Fair play for Commonwealth
Allocation for the Commonwealth Games 2010 has been enhanced from Rs 2,112 crore in the Interim Budget to Rs 3,472 crore in the Budget for 2009-10.

Sri Lanka rehabilitation
There is a proposal to allocate Rs 500 crore for the rehabilitation of internally displaced persons and the reconstruction of the northern and eastern areas of Sri Lanka.The Ministry of External Affairs is working closely with the Sri Lankan government in this regard.

Cyclone damage control
An allocation of Rs 1,000 crore for Cyclone Aila struck regions on the coast of West Bengal has been made. The money will be used to rebuild infrastructure which had been destroyed.

Mission for female literacy
There's a proposal to launch a National Mission for Female Literacy with focus on minorities, SC, ST and other marginalised groups. The aim will be to reduce by half, the current level of female illiteracy, in three years.

Integrated Child Development Services
By March 2012 all services under the Integrated Child Development Services (ICDS) will be extended. The government is committed to universalisation of the Integrated Child Development Services (ICDS) scheme in the country.

Support to AMU
There is a proposal to grant funds to Aligarh Muslim University. The plan includes allocating Rs 25 crore each for two new campuses to be set up by the institute. One campus will come up in Murshidabad in .West Bengal and another one in Malappuram in Kerala.

Also Read

First Published: Jul 07 2009 | 12:01 AM IST

Next Story