NHAI to raise Rs 15,000 crore through bonds
National Highways Authority of India (NHAI) will raise Rs 15,000 crore through bonds in 2016-17. This will add to the government's efforts to boost roads and highways capacity in line with the rapid rise in road construction. India's highest-ever kilometerage of new highways were awarded in 2015.
Total infrastructure outlay stands at Rs 2.2 lakh crore
The outlay for the infrastructure sector in 2016-17 is Rs 221,000 crore. This includes Rs 218,000 crore of outlay for the roads and the railways sectors put together. More than 10,000 km of new highways will be awarded in 2016-17. Also, more than 50,000 km of state highways will be taken up for upgradation.
A sum of Rs 38,500 crore has been allocated for Mahatma Gandhi National Rural Employment Guarantee Scheme in 2016-17. Under the scheme, cluster facilitation teams will be set up to ensure water conservation and natural resource management, to tackle issues of draught and rural distress.
Rs 87,765 crore for rural development
Finance Minister Arun Jaitley has allocated Rs 87,765 crore for rural development as a whole. This includes allocations for the Rashtriya Gram Swaraj Abhiyan, modernisation of land records, a new Digital Literacy Mission for rural India and other schemes.
Rs 9 lakh crore for agricultural credit
Care has been taken to ensure adequate flow of credit to farmers. Against the target of Rs 8.5 lakh crore in 2015-16, the target for agricultural credit in 2016-17 will be Rs 9 lakh crore. To reduce farmers' loan repayment burden, a provision of Rs 15,000 crore has been made towards interest subvention.
100% village electrification by May 2018
The government is targeting to achieve 100 per cent village electrification by May 2018. As part of the effort, Rs 8,500 crore has been provided for the Deendayal Upadhyay Gram Jyoti Yojana and the Integrated Power Development Scheme. At the end of March 2015, 18,542 villages were not electrified.
Rs 412 crore for organic farming schemes
The Budget has allocated Rs 412 crore for organic farming schemes, including the Paramparagat Krishi Vikas Yojana, that will bring 500,000 acres under organic farming and the Organic Value Chain Development in the north-east region. The aim is higher value addition in organic farming.
Rs 2,000 crore for LPG connections for the poor
Rs 2,000 crore has been set aside to meet the cost of providing LPG connections to women of poor households. The scheme, called Ujjwala, will benefit 15 million households below the poverty line in 2016-17. The scheme will cover 50 million households over two more years.
Dedicated irrigation fund created
A dedicated long-term irrigation fund will be created in National Bank for Agriculture and Rural Development, with an initial corpus of Rs 20,000 crore. The Budget has promised 89 irrigation projects will be fast-tracked. These need Rs 17,000 crore in the next financial year and Rs 86,500 crore in five years.
Big boost for rural road-building scheme
The Budget has allocated Rs 19,000 crore for the Pradhan Mantri Gram Sadak Yojana (PMGSY). Along with the states' share, a total of Rs 27,000 crore will be spent on the scheme in the next financial year. The idea is to connect the remaining 65,000 eligible habitations by building 223,000 km of roads.
Road construction activity to be stepped up
The pace of roads construction, currently 100 km per day, as compared to an average of 73.5 km between 2011 and 2014, will be substantially stepped up. Rs 55,000 crore has been allocated for the roads and highways sector. The pace of completion of road projects will rise to 10,000 km in 2016-17.
Awards for open defecation-free villages
Rs 9,000 crore has been provided for the Swachh Bharat Abhiyan, the drive to improve sanitation and cleanliness, especially in rural India. To promote it, priority allocations from centrally sponsored schemes will be made to reward villages that have become free from open defecation.
Health scheme cover of Rs 1 lakh per family
To help families that are hit by catastrophic events leading to out-of-pocket expenses, the government will launch a new health protection scheme with a coverage of up to Rs 1 lakh per family. Senior citizens 60 years and above from this category will get an additional top-up package of up to Rs 30,000.
Dialysis services programme to be launched
The government will start a 'National Dialysis Services Programme' under which funds will be made available through PPP mode under the National Health Mission in all district hospitals. Certain parts of dialysis equipment will be exempted from excise/customs duties to reduce the cost.
Scheme to promote SC/ST entrepreneurs
The Budget provides Rs 500 crore for the 'Stand Up India Scheme' to promote entrepreneurship among SC/ST and women. The scheme will facilitate at least two projects per bank branch, one for each category of entrepreneur. This will benefit at least 2.5 lakh entrepreneurs, enabling them to create jobs.
Initiatives to promote quality education
The allocation for the Sarva Shiksha Abhiyan has been increased, to promote quality education. Also, 62 new Navodaya Vidyalayas will be opened over the next two years. A Higher Education Financing Agency (HEFA) with an initial capital base of Rs 1,000 crore will also be set up.
Road transport sector to be opened up
The government will enact necessary amendments in the Motor Vehicles Act and open up the road transport sector in the passenger segment. The idea is to increase efficiency in the passenger traffic segment which suffers from a lack of reforms and multiple impediments.
Under-utilised airports to be revived
The government is drawing up an action plan for revival of under-utilised airports. There are about 160 airports and air strips in states which will be revived at an indicative cost of Rs 50-100 crore each. The Centre will partner with the states to develop some of these airports for regional connectivity.
Nuclear power generation to be stepped up
The government is drawing up a comprehensive plan for the next 15 to 20 years, to augment investment in nuclear power generation. A budgetary allocation up to Rs 3,000 crore per annum together, with public sector investments, will be leveraged to facilitate the required investment.
DBT pilot project for fertiliser sector
The Budget will introduce the Direct Benefits Transfer scheme named PAHAL in the fertiliser sector, building upon the success of a similar scheme for cooking gas subsidies. A project will be introduced in a few districts to improve service delivery to farmers.
300,000 fair price shops to be automated
The Budget provides for implementing projects to introduce automation facilities in 300,000 out of the 535,000 Fair Price Shops (FPS) across the country by March 2017. This is part of the initiatives aimed at ensuring public money reaches the poor and the deserving without any leakage.
Rs 25,000 crore for recapitalisation of govt banks
To support banks and also to support credit growth, the Budget has allocated Rs 25,000 crore for recapitalisation of public sector banks (PSBs). To ensure that PSBs are strong and competitive, the Banks Board Bureau will be operationalised a roadmap for their consolidation spelt out.
Govt to use Aadhaar for targeted subsidies
The government will introduce a Bill for Targeted Delivery of Financial and Other Subsidies, Benefits and Services by using the Aadhaar framework. The Bill will be introduced in the current session of Parliament. A social security platform will be developed using Aadhaar, to accurately target beneficiaries.
Buffer stock of pulses to be created
The Budget provides Rs 900 crore for a Price Stabilisation Fund to help create a buffer stock of pulses through procurement at market price and the Minimum Support Price. This is part of efforts to ensure monitoring of prices of essential commodities where an abrupt increase in prices has become a problem.
Coming soon, Bankruptcy Code for financial firms
A comprehensive Code on Resolution of Financial Firms will be introduced as a Bill in Parliament in 2016-17. This Code will provide a specialised resolution mechanism to deal with bankruptcy situations in banks, insurance companies and financial sector entities.
100% FDI in marketing of food products
The Budget provides for 100 per cent Foreign Direct Investment (FDI) through the FIPB route in marketing of food products produced and manufactured in India. This will benefit farmers, and give impetus to the food processing industry. Currently, farmers don't get the right prices for their produce.
Port capacity to be ramped up, Rs 800-cr allocated
To ramp up capacity creation in ports sector, the Budget has provided Rs 800 crore to expedite the National Waterways Project, the Sagarmala project and development of new ports on both the eastern and the western coasts. This is part of the effort to modernise ports and increase capacity.
Presumptive tax threshold limit increased
The Budget has amended the provisions of section 44AD of the Income tax Act, to increase the threshold limit of presumptive taxation from Rs 1 crore to Rs 2 crore. It also proposes to provide that if the taxpayer opts for the presumptive taxation scheme, he has to remain in that scheme for five years.
Soil Health Card scheme expanded to 140 mn farms
The Budget has provided for coverage of all 140 million farm holdings in the Soil Health Card scheme. Under the scheme, farmers get information about nutrient levels in the soil and can make judicious use of fertilisers. The National Project on Soil Health and Fertility gets a sum of Rs 368 crore.
e-Sahyog pilot project to be expanded
The income-tax department will expand the 'e-Sahyog' pilot project to reduce compliance costs, especially for small taxpayers. The aim is to provide an online mechanism to resolve mismatches in income-tax returns, without requiring taxpayers to visit departmental offices.
National Highways Authority of India (NHAI) will raise Rs 15,000 crore through bonds in 2016-17. This will add to the government's efforts to boost roads and highways capacity in line with the rapid rise in road construction. India's highest-ever kilometerage of new highways were awarded in 2015.
Total infrastructure outlay stands at Rs 2.2 lakh crore
The outlay for the infrastructure sector in 2016-17 is Rs 221,000 crore. This includes Rs 218,000 crore of outlay for the roads and the railways sectors put together. More than 10,000 km of new highways will be awarded in 2016-17. Also, more than 50,000 km of state highways will be taken up for upgradation.
Also Read
Rural jobs scheme gets Rs 38,500 crore
A sum of Rs 38,500 crore has been allocated for Mahatma Gandhi National Rural Employment Guarantee Scheme in 2016-17. Under the scheme, cluster facilitation teams will be set up to ensure water conservation and natural resource management, to tackle issues of draught and rural distress.
Rs 87,765 crore for rural development
Finance Minister Arun Jaitley has allocated Rs 87,765 crore for rural development as a whole. This includes allocations for the Rashtriya Gram Swaraj Abhiyan, modernisation of land records, a new Digital Literacy Mission for rural India and other schemes.
Rs 9 lakh crore for agricultural credit
Care has been taken to ensure adequate flow of credit to farmers. Against the target of Rs 8.5 lakh crore in 2015-16, the target for agricultural credit in 2016-17 will be Rs 9 lakh crore. To reduce farmers' loan repayment burden, a provision of Rs 15,000 crore has been made towards interest subvention.
100% village electrification by May 2018
The government is targeting to achieve 100 per cent village electrification by May 2018. As part of the effort, Rs 8,500 crore has been provided for the Deendayal Upadhyay Gram Jyoti Yojana and the Integrated Power Development Scheme. At the end of March 2015, 18,542 villages were not electrified.
Rs 412 crore for organic farming schemes
The Budget has allocated Rs 412 crore for organic farming schemes, including the Paramparagat Krishi Vikas Yojana, that will bring 500,000 acres under organic farming and the Organic Value Chain Development in the north-east region. The aim is higher value addition in organic farming.
Rs 2,000 crore for LPG connections for the poor
Rs 2,000 crore has been set aside to meet the cost of providing LPG connections to women of poor households. The scheme, called Ujjwala, will benefit 15 million households below the poverty line in 2016-17. The scheme will cover 50 million households over two more years.
Dedicated irrigation fund created
A dedicated long-term irrigation fund will be created in National Bank for Agriculture and Rural Development, with an initial corpus of Rs 20,000 crore. The Budget has promised 89 irrigation projects will be fast-tracked. These need Rs 17,000 crore in the next financial year and Rs 86,500 crore in five years.
Big boost for rural road-building scheme
The Budget has allocated Rs 19,000 crore for the Pradhan Mantri Gram Sadak Yojana (PMGSY). Along with the states' share, a total of Rs 27,000 crore will be spent on the scheme in the next financial year. The idea is to connect the remaining 65,000 eligible habitations by building 223,000 km of roads.
Road construction activity to be stepped up
The pace of roads construction, currently 100 km per day, as compared to an average of 73.5 km between 2011 and 2014, will be substantially stepped up. Rs 55,000 crore has been allocated for the roads and highways sector. The pace of completion of road projects will rise to 10,000 km in 2016-17.
Awards for open defecation-free villages
Rs 9,000 crore has been provided for the Swachh Bharat Abhiyan, the drive to improve sanitation and cleanliness, especially in rural India. To promote it, priority allocations from centrally sponsored schemes will be made to reward villages that have become free from open defecation.
Health scheme cover of Rs 1 lakh per family
To help families that are hit by catastrophic events leading to out-of-pocket expenses, the government will launch a new health protection scheme with a coverage of up to Rs 1 lakh per family. Senior citizens 60 years and above from this category will get an additional top-up package of up to Rs 30,000.
Dialysis services programme to be launched
The government will start a 'National Dialysis Services Programme' under which funds will be made available through PPP mode under the National Health Mission in all district hospitals. Certain parts of dialysis equipment will be exempted from excise/customs duties to reduce the cost.
Scheme to promote SC/ST entrepreneurs
The Budget provides Rs 500 crore for the 'Stand Up India Scheme' to promote entrepreneurship among SC/ST and women. The scheme will facilitate at least two projects per bank branch, one for each category of entrepreneur. This will benefit at least 2.5 lakh entrepreneurs, enabling them to create jobs.
Initiatives to promote quality education
The allocation for the Sarva Shiksha Abhiyan has been increased, to promote quality education. Also, 62 new Navodaya Vidyalayas will be opened over the next two years. A Higher Education Financing Agency (HEFA) with an initial capital base of Rs 1,000 crore will also be set up.
Road transport sector to be opened up
The government will enact necessary amendments in the Motor Vehicles Act and open up the road transport sector in the passenger segment. The idea is to increase efficiency in the passenger traffic segment which suffers from a lack of reforms and multiple impediments.
Under-utilised airports to be revived
The government is drawing up an action plan for revival of under-utilised airports. There are about 160 airports and air strips in states which will be revived at an indicative cost of Rs 50-100 crore each. The Centre will partner with the states to develop some of these airports for regional connectivity.
Nuclear power generation to be stepped up
The government is drawing up a comprehensive plan for the next 15 to 20 years, to augment investment in nuclear power generation. A budgetary allocation up to Rs 3,000 crore per annum together, with public sector investments, will be leveraged to facilitate the required investment.
DBT pilot project for fertiliser sector
The Budget will introduce the Direct Benefits Transfer scheme named PAHAL in the fertiliser sector, building upon the success of a similar scheme for cooking gas subsidies. A project will be introduced in a few districts to improve service delivery to farmers.
300,000 fair price shops to be automated
The Budget provides for implementing projects to introduce automation facilities in 300,000 out of the 535,000 Fair Price Shops (FPS) across the country by March 2017. This is part of the initiatives aimed at ensuring public money reaches the poor and the deserving without any leakage.
Rs 25,000 crore for recapitalisation of govt banks
To support banks and also to support credit growth, the Budget has allocated Rs 25,000 crore for recapitalisation of public sector banks (PSBs). To ensure that PSBs are strong and competitive, the Banks Board Bureau will be operationalised a roadmap for their consolidation spelt out.
Govt to use Aadhaar for targeted subsidies
The government will introduce a Bill for Targeted Delivery of Financial and Other Subsidies, Benefits and Services by using the Aadhaar framework. The Bill will be introduced in the current session of Parliament. A social security platform will be developed using Aadhaar, to accurately target beneficiaries.
Buffer stock of pulses to be created
The Budget provides Rs 900 crore for a Price Stabilisation Fund to help create a buffer stock of pulses through procurement at market price and the Minimum Support Price. This is part of efforts to ensure monitoring of prices of essential commodities where an abrupt increase in prices has become a problem.
Coming soon, Bankruptcy Code for financial firms
A comprehensive Code on Resolution of Financial Firms will be introduced as a Bill in Parliament in 2016-17. This Code will provide a specialised resolution mechanism to deal with bankruptcy situations in banks, insurance companies and financial sector entities.
100% FDI in marketing of food products
The Budget provides for 100 per cent Foreign Direct Investment (FDI) through the FIPB route in marketing of food products produced and manufactured in India. This will benefit farmers, and give impetus to the food processing industry. Currently, farmers don't get the right prices for their produce.
Port capacity to be ramped up, Rs 800-cr allocated
To ramp up capacity creation in ports sector, the Budget has provided Rs 800 crore to expedite the National Waterways Project, the Sagarmala project and development of new ports on both the eastern and the western coasts. This is part of the effort to modernise ports and increase capacity.
Presumptive tax threshold limit increased
The Budget has amended the provisions of section 44AD of the Income tax Act, to increase the threshold limit of presumptive taxation from Rs 1 crore to Rs 2 crore. It also proposes to provide that if the taxpayer opts for the presumptive taxation scheme, he has to remain in that scheme for five years.
Soil Health Card scheme expanded to 140 mn farms
The Budget has provided for coverage of all 140 million farm holdings in the Soil Health Card scheme. Under the scheme, farmers get information about nutrient levels in the soil and can make judicious use of fertilisers. The National Project on Soil Health and Fertility gets a sum of Rs 368 crore.
e-Sahyog pilot project to be expanded
The income-tax department will expand the 'e-Sahyog' pilot project to reduce compliance costs, especially for small taxpayers. The aim is to provide an online mechanism to resolve mismatches in income-tax returns, without requiring taxpayers to visit departmental offices.