Budget 2016-17

Delhi Law Academy Uncategorized

Announcements made by Finance Minister in Budget speech 2016-17 


  1. Big Focus on Agriculture and Farmer’ Welfare

(i)            Farmer’s income to be doubled by 2022.

(ii)           28.5 lakh hectares will be brought under irrigation under Pradhan Mantri Krishi Sinchai Yojana.

(vii)           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.

(viii)         Soil Health Cards will be given to 14 crore farm holdings by March, 2017.

(x)            Unified Agricultural Marketing E Platform to be dedicated to the Nation on the Birthday of Dr. Ambedkar on 14th April, 2016.


  1. Rs. 27,000 crore including State’s share to be spent on PMGSY in 2016-17. Target date of completion of PMGSY advanced from 2021 to 2019.


  1. FCI will undertake online procurement of food grains. This will bring transparency and convenience to farmers through prior registration and monitoring of procurement.


  1. Pashudhan Sanjeevani, an animal wellness programme, will be undertaken. Nakul Swasthya Patras to be issued.


  1. Rural Sector

(i)            Rs. 2.87 lakh crore will be given as Grant in Aid to Gram Panchayats and Municpalities as per the recommendations of the 14th FC. This translates to Rs. 81 lakh per gram panchayat and over Rs. 21 crore per Municipality.

(iii)            300 Rurban Clusters will incubate growth Centres in Rural Area.

(iv)            All villages will be electrified by 1st May, 2018.

(v)            A new Digital Literacy Mission scheme will be launched for rural India to cover around 6 crore households in next three years.

(vi)            Modernisation of Land Records through revamped National Land Records Programme.

(vii)           Rashtriya Gram Swaraj Programme to be launched.


  1. Targeted Delivery of Government subsidies and benefits to ensure that they reach the poor and the deserving.

(i)            New law fpr targeted delivery of financial and other subsidies etc. using Aadhar framework will be enacted.

(ii)            DBT in fertilizer will be launced on pilot basis.


  1. MUDRA – Loan target of 1,80,000 crore in 2016-17.


  1. Social Sector

(i)            Massive Mission to provide LPG connection to poor households will be launched. 1.5 crore poor households will benefit in 2016-17. Scheme will continue for two more years to cover a total of 5 crore BPL households. LPG connection to be given in the name of woman member of the family.

(ii)            New Health Protection scheme will be launched. Health cover up to Rs. 1 lakh per family and additional Rs. 30,000 for senior citizens to be provided.

(iii)            3000 stores under Prime Minister’s Jan Aushadhi Yojana will be opened in 2016- 17.


  1. Education

(ii)            An enabling regulatory architecture will be provided to 10 public and 10 private institutions to emerge as world class teaching and research institutions.

(iii)            Higher Education Financing Agency will be set up with an initial capital base of Rs. 1,000 crore.

(iv)            Digital Depository will be set up for educational certificates, mark-sheets, awards etc.


  1. Skills

(i)            1500 Multi Skill Training Institutes will be set up under Pradhan Mantri Kaushal Vikas Yojana

(ii)            National Board for Skill Development Certification will be set up in partnership with industry and academia.


  1. Job Creation

(i)            Government of India will pay EPS contribution of 8.33% for all new employees enrolling in EPFO for the first three years of employment. Applicable to those with salaries  of Rs. 15,000 per month

(iii)            Interlinking of State Employment Exchanges with National Career Service Platform.


  1. Measures in the sectors of Infrastructure, Investment, Banking, Insurance etc.


(ii)            Unserved and underserved airstrips to be revived by AAI and also in partnership with State Governments.

(iii)            Road transport sector (passenger segment) to be opened up by removing permit system. This will benefit the poor and middle class, encourage new investment, promote start up entrepreneurs and create new jobs. This is a major reform measure.

(vii)           For the benefit of farmers, 100% FDI through FIPB route will be permitted for marketing of food products, produced and manufactured in India. This will give big encouragement to food processing industry and create new jobs.

(x)            In the financial sector, a comprehensive Code on Resolution of Financial Firms will be enacted. Together will the Bankruptcy and Insolvency Law, this will fill a major systemic vacuum. This is a big reform measure.

(xiv)         Comprehensive Central legislation to deal with Illicit Deposit Taking schemes will be enacted.


  1. ‘Ek Bharat Shreshtha Bharat’ will be launched to link States and Districts.


  1. Technology Driven Platform for Government procurement of goods and services will be set up by DGS&D. This will improve transparency, efficiency and reduce cost of procurement.


  1. Fiscal Discipline

(i)            Fiscal deficit target of 3.5% of GDP in 2016-17

(ii)            Committee for review of FRBM Act.