Union general Budget 2016-2017
Finance Minister Arun Jaitley presented the Union Budget for fiscal
2016-17 in the Lok Sabha on February 29, 2015.
Highlights of Union Budget 2016-17
The highlights of the Union Budget are as following:
Finance Minister Arun Jaitley presented the Union Budget 2016-17 on Monday.
Jaitley announced a slew of measures for the farm sector which was under stress because of drought. Here’s
what Jaitley announced for farmers in his budget.
| * 28.5 lakh hectares will be brought under irrigation under the Pradhan
Mantri Krishi Sinchai Yojana.
* A dedicated Long Term Irrigation Fund will be created in NABARD with
an initial corpus of about Rs 20,000 crore. To achieve all these, a total provision of Rs 12,517 crore has been made through budgetary
support and market borrowings in 2016-17.
* Simultaneously a major programme for sustainable management of ground
water resources has been prepared with an estimated cost of Rs 6,000
crore and proposed for multilateral funding.
* At least 5 lakh farm ponds and dug wells in rain fed areas and 10 lakh
compost pits for production of organic manure will be taken up by making
productive use of the allocations under MGNREGA.
* The Soil Health Card Scheme is now being implemented with greater
vigour. Through this, farmers get information about nutrient level of
the soil and can make judicious use of fertilizers. The target is to
cover all 14 crore farm holdings by March 2017. Rs 368 crore has been
provided for National Project on Soil Health and Fertility. Besides,
2,000 model retail outlets of Fertilizer companies will be provided with
soil and seed testing facilities during the next three years. Fertilizer
companies will also co-market city compost which increases the efficacy
of chemical fertilizer. A policy for conversion of city waste into compost has also been approved by the Government under the Swachh Bharat
* To increase crop yields in rain fed areas, which account for nearly
55% of the country’s arable land, organic farming is being promoted.
Towards this end, the Government has launched two important schemes.
First, the ‘Parmparagat Krishi Vikas Yojana’ which will bring 5 lakh
acres under organic farming over a three year period. Second, the Government has launched a value chain based organic farming scheme
called “Organic Value Chain Development in North East Region”. The
emphasis is on value addition so that organic produce grown in these
parts find domestic and export markets. A total provision of Rs 412 crore has been made for these schemes.
* Rs 500 crores under National Food Security Mission has been assigned
to pulses. The number of districts covered has been increased to 622.
* A national level competition will be held among 674 Krishi Vigyan Kendras with a total prize money of Rs 50 lakh to improve the efficiency
and performance of these Kendras.
* The Government is implementing the Unified Agriculture Marketing Scheme which envisages a common e-market platform that will be deployed
in selected 585 regulated wholesale markets. Amendments to the APMC Acts
of the States are a pre-requisite to join this e-platform.
* The government allocated Rs 19,000 crore for Pradhan Mantri Gram Sadak
Yojana in 2016-17.
* Special focus has been given to ensure adequate and timely flow of
credit to the farmers. Against the target of Rs 8.5 lakh crore in 2015-16, the target for agricultural credit in 2016-17 will be an
all-time high of Rs 9 lakh crore. To reduce the burden of loan repayment
on farmers, a provision of Rs 15,000 crore has been made in the BE 2016-17 towards interest subvention.
* Government has approved the Crop Insurance Scheme, namely, Prime Minister Fasal Bima Yojana. For effective implementation of this Scheme,
the govt has provided a sum of Rs 5,500 crore in the Budget 2016-17.
* Government to undertake massive rollout of ATMs in post offices.The Department of Posts (DoP) has already announced plans to open 1,000
ATMs by March this year and also bring all 25,000 departmental post offices.