Budget 2016: A roadmap for progressive rural development

The Union Budget 2016 charted out a clear vision statement for the progress of India’s rural regions. We take stock of some key announcements.

Budget 2016-2017 was observed by many as an exercise in carrying forward and implementing some of the reforms announced in the previous budget. However, this financial year’s budget took a significant departure to focus on farming, agriculture and the country’s rural areas. Several significant announcements in Budget 2016-2017 were devoted to these areas, and if implemented correctly and efficiently, should boost India’s agriculture and rural business landscape to great heights.

In a nutshell, the following were key announcements for the rural areas as outlined by Budget 2016-2017:

1. 1 Mass welfare: Priority to be given to funding initiatives aimed at rural families. These include primary education, two wheeler loan and small business funding, incentives for women’s cooperatives, and special focus on drought-prone areas.
2. 2 Basic services: At least 5,500 villages were slotted to receive power by May 2016, Rs 19,000 crore to build roads in villages, cooking gas for BPL families, and Rs 9,000 crore for Swachh Bharat Abhiyan with special emphasis on clean villages and toilets for every home.
3. 3 Modernisation: 3,000 medical stores to be started under Jan Aushadhi Scheme till 2017, launch of agricultural e-market portal, digital literacy mission programmes, and new reforms in banking, insurance and infrastructure.
4. 4 Agriculture: 28.5 lakh hectares to be brought under irrigation programmes of Pradhan Mantri Krishi Sichai Yojana, Rs 412 crore for organic farming initiatives (5 lakh acres area being targeted for organic farming), Rs 5,500 crore from PM Fasal Bima Yojana, Rs 5,500 crore for crop insurance, Rs 17,000 crore for irrigation, aim to double farmers’ earnings by year 2020.

These initiatives will go a long way in uplifting India’s rural regions. A lot of untapped potential exists in India’s villages, held back owing to lack of opportunity, timely finance and even awareness about several welfare schemes. Meanwhile, several financial institutions in India are doing their bit to bring about a revival in the fortunes of India’s villages. These initiatives include simple and accessible banking and insurance services for the rural areas, as also funding opportunities for families like two wheeler loans and business loans to kick-start their own venture.