Initiatives by government for different sectors
A close view of what the FM is proffering with the new Budget
The Government has proposed various policy initiatives in Budget 2011. Some of the key initiatives taken by government towards the development of different sectors are mentioned below:
- The Government is considering extending the nutrient based subsidy policy, implemented in the financial year 2010-11, to cover urea as well.
- To provide further impetus to the development of the food processing sector, the Government has approved 15 more mega food parks taking the total number of mega food parks to 30.
- The Government will launch a national mission for hybrid and electric vehicles in collaboration with all stakeholders to provide green and clean transportation for the masses.
- The Ministry of Textiles in consultation with the Planning Commission will formulate a scheme to allocate INR 30 billion (proposed to be provided to NABARD) for handloom weaver co-operative societies which have become financially unviable due to non repayment of debt by handloom weavers facing economic stress.
- The Government will set up seven mega clusters for leather products during financial year 2011-12.
- The Government will include capital investment in fertilizer production, cold chain and post harvest storage as an infrastructure sub-sector.
- The Government will allocate INR 2,140 billion towards the infrastructure sector which is about 48.5 percent of the total planned allocation.
- Various Government undertakings will issue tax free bonds of INR 300 billion to boost infrastructure development in railways, ports, housing and highways.
- The Government has increased the disbursement target of India Infrastructure Finance Company Limited by INR 50 billion to provide long term financial assistance to infrastructure projects. Further, the amount to be sanctioned for takeout financing scheme has been pegged at INR 50 billion.
- To attract investment in cold storage projects, capital investment will be eligible for viability gap funding scheme of the Finance Ministry.
- The Government will raise the total limit available to FIIs for investment in corporate bonds to USD 40 billion in order to enhance the flow of funds to the infrastructure sector. FIIs would also be permitted to invest in unlisted bonds with a minimum lock-in period of three years. FIIs will however be permitted to trade among themselves during the lock-in period.
- The Government will allocate an additional INR 20 billion to the corpus of Rural Infrastructure Development Fund to create warehousing facilities.
- The Companies Bill will be introduced in the Lok Sabha during the current session.
- The Government has taken concrete measures to improve the agricultural productivity, some of which include:
- The increase in allocation to the ongoing Rashtriya Krishi Vikas Yojana from INR 67.55 billion in the financial year 2010-11 to INR 78.60 billion in the financial year 2011-12.
- Allocate INR 3 billion to promote 60,000 pulses villages in rainfed areas to increase crop roductivity and to strengthen market linkages.
- Increase the target of credit flow to the farmers from INR 3,750 billion in the financial year 2010-11 to INR 4,750 billion in the financial year 2011-12.
- Provide interest subvention of 3 percent in the financial year 2011-12 (increased from 2 percent in the last financial year) to farmers who repay their short term crop loans on time.
- The Government expects the share of manufacturing in GDP to increase from 16 percent to 25 percent over a period of 10 years and to achieve this goal will come out with a comprehensive manufacturing policy.
- The Government will introduce National Food Security Bill in the Parliament during the financial year 2011-12.
- The Government will provide INR 267 billion towards health sector.
(With inputs from Ernst and Young)