Rural India to be key focus of 2016 budget
FUND BOOST Govt eyes turnaround in rural demand by raising investments in agriculture, MNREGS, small businesses
NEW DELHI: As the Central government gets started on the budget exercise for 2016-17, the focus this time is on boosting rural spending through increased investments in agriculture, micro, small and medium enterprises (MSMEs) and the Mahatma Gandhi National Rural Employment Guarantee Scheme.
Officials said that the issues discussed in a recent meeting between PM Narendra Modi and public and private sector would also be taken up in the forthcoming budget.
“Though the meeting was primarily to highlight the global economic scenario and the Chinese slowdown, it (the meeting) will also be treated as a budget meeting and there could be many announcements made in the forthcoming budget to address these issues,” said an official source. Besides, steps will also be taken to further simplify ease of doing business in the country.
With global oil prices coming down to below $50 per barrel, the government is expecting the subsidy bill to be substantially lower than 2.27 lakh crore projected in the budget. As per estimates it could save over ` 30,000 crore.
“This would provide enough elbow room to expand spending in certain critical sectors,” the official said. Experts have said that boosting infrastructure and MSME sectors would have a multiplier effect and boost economic growth and generate jobs.
The country’s economy grew at 7% in the first quarter of current financial year, slower than the 7.5% in the last quarter of 2014-15.
The finance ministry has also directed all other departments and ministries to expedite their budgeted allocations so that they show results in time.
The Centre’s spending during the first four months in 2015-16 stood at ` 6 lakh crore which is about 20% of the budgeted expenditure.