NEW DELHI (Reuters) - Indian Finance Minister Arun Jaitley unveiled a budget for the poor on Monday, announcing new rural aid and health programmes in a strategy shift that could boost his ruling party in coming state elections.
Presenting his third budget, Jaitley reiterated a forecast that it would grow by 7.6 percent in the fiscal year that is drawing to a close. But he said the government wanted to ensure that the benefits of growth were more widely shared among India's 1.3 billion people.
"We have a shared responsibility to spend prudently and wisely for the people, especially for the poor and downtrodden," the 63-year-old finance minister said in his opening remarks to lawmakers.
Here are the highlights of Jaitley's budget for the fiscal year
that begins on April 1.
RURAL ECONOMY
* Rural jobs programme allocated 385 billion rupees ($5.61 billion) in 2016/17
* Farmer welfare budget to total 359.84 billion rupees
* Rural road development to get 190 billion rupees
* Target of agriculture credit at 9 trillion rupees
* Interest subvention towards farm loans at 150 billion rupees
POLICY REFORMS
* Bankruptcy code for financial firms to be introduced in parliament in 2016/17
* RBI act is being amended for implementing monetary policy framework
* To list general insurances companies on stock exchanges
BANKING REFORMS
* Government to infuse 250 billion rupees capital into state-run banks in 2016/17; will find resources for additional capital for banks if required
INFRASTRUCTURE
* Allocates 2.21 trillion rupees for infrastructure development for 2016/17
* Allocation for roads and highways development at 550 billion rupees
* Capital expenditure on roads and rail development at 2.18 trillion rupees
INVESTMENT
* 100 percent foreign direct investment to be allowed in food processing industry
* Promises further reforms in foreign direct investment policy in insurance, pension, asset recast companies
DIVESTMENT
* To encourage central public enterprises to divest own assets for raising resources for new projects
($1 = 68.6700 Indian rupees)
(Compiled by Tommy Wilkes and Krishna N. Das)
