The finance minister of India, Arun Jaitley presents the union budget 2016-17 today. It is his third bill that he will show in front of the people of India. Arun Jaitley has a tough task to do as people have hope in him and are expecting the Union budget of 2016-17 to be more fruitful for them.
The cabinet approved the union budget 2016-17 at around 10:30 a.m. The share market was eagerly waiting for the finance minister, Arun Jaitley to wrap this budget with some goodies for the stock exchange.
Union Budget 2016-17 indicated to focus on farmers
The speech of Arun Jaitley started with the line “I am presenting this budget when the global economy is in a crisis.” But despite starting his speech with a negative tone, he assured that Indian economy had held its ground firmly.
He informed that the growth of GDP has remarkably increased to 7.6%. He also said that the foreign exchange reserves are at its zenith level up until now. Also, the CPI inflation has decreased to 5.4%. He presents many positive aspects in his speech like the CAD has declined drastically to $14.4 billion in the current year and would be only 1.4% of the GDP at the end of this exercise.
The Union Budget 2016-17 indicated to focus on farmers. Finance Minister Arun Jaitley announced a new scheme “Pradhan Mantri Fasal Bima Yojana.” Under this plan, the farmer will receive compensation if he loses crops.
This project would undoubtedly improve the condition of farmers in our country. The budget allotted to this scheme is Rs. 5500 crores. Arun Jaitley also announced that the government would allocate Rs. 35,984 crores for the agriculture sector to improve the conditions of farmers
This plan would probably double the income of farmers in next five years. According to him, the already existing irrigation scheme for farmers, “Pradhan Mantri Krishi Sichai Yojana” is working efficiently and helping several farmers.
In the period of next three years, 5 lakh acre of land to be brought under organic farming. To bring farmers on a digital platform, Arun Jaitley announced that an e-commerce platform would launch soon.
Implementation of 7th Pay Commission and One Rank One Pension scheme
In his forecast for the next fiscal year union budget, he said that it would have an additional burden due to the implementation of 7th Pay Commission and ‘One-Rank One-Pension’ scheme. During his speech in Lok Sabha, Arun Jaitley said that the agenda for next year based on nine pillars which will transform India into a superpower. It includes agriculture sector, rural sector, social sector, education, skills, and job creation to make India knowledge based and productive economy, fiscal discipline, tax reforms to reduce compliance burden, governance reforms and ease of doing business, infrastructure investment, and financial sector reforms.
The Central government would also provide incentives for deepwater gas exploration. Also, with the support of the state government, the central government is launching a new initiative to provide cooking gas to the BPL (Below Poverty Line) families.
Arun Jaitley also announced some infrastructural developments like 65 suitable habitats would connect to rods ranging from 2.23 lakhs kilometers.
Adding to it, he also allocated Rs.19,000 crore to Pradhanmantri Gram Sadak Yojana. MNREGA( Mahatma Gandhi National Rural Employment Guarantee Act) would get Rs. 38,500 crore. The government would spend Rs.9,000 crore on Swach Bharat Abhiyaan.A higher education financing body would be set up for those wishing to pursue higher education and government has allotted Rs.1000 crore for this project.
The finance minister, Arun Jaitley assured that there would be 100% rural electrification by 1st may, 2018. To turn it into reality the government would spend Rs 8500 crore on the project.