NEW DELHI, FEBRUARY 29 (AGENCIES): Rs 33,097 crore has been allocated for development of North Eastern Region in the Union budget which included a special fund of Rs 412 crore for promotion of organic farming. Presenting the Union Budget 2016-17, Finance Minister Arun Jaitely said Rs 33,097 has been earmarked for North Eastern Region across all ministries.
The budget allocated Rs 2,430.01 crore to the Ministry of Development of North Eastern Region, of which Rs 2,400 crore is under plan and Rs 30.01 crore under non-plan heads.
Rs 223 crore has been allocated for livelihood, skill and capacity building of the rural population. The project is proposed to be funded through the World Bank.
Rs 300 crore has been given for North East Road Sector Development Scheme for meeting the expenditure of the project management unit to facilitate implementation of ADB-assisted North East Road Project.
The Finance Minister said the government has launched a value chain-based organic farming scheme, called ‘Organic Value Chain Development in North Eastern 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,” he said. Rs 900 crore has been allocated under the Central Pool of Resources for North Eastern Region, including Sikkim, while Rs 795 has been given for implementation of various development schemes of the North Eastern Council.
Besides, clean energy cess or clean environment cess on coal, lignite or peat, produced or extracted as per traditional and customary rights enjoyed by tribals without any licence or lease in Nagaland has been completely exempted. Applicable excise duty for such work is chargeable at Rs 200 per tonne.
Finance Minister Arun Jaitley’s third budget marked a strategic shift by addressing rural distress. At the same time it hiked public investment in India’s woeful infrastructure by 22.5 percent, while taking further steps to revive corporate investment.
“We have a shared responsibility to spend prudently and wisely for the people, especially for the poor and downtrodden,” the 63-year-old finance minister told lawmakers in his 100-minute address. The government will also allocate $32 billion for infrastructure development in 2016/17, an increase of 22.5 percent from last year, building 10,000 km of new national highways and upgrading another 50,000 km.
Financial investors gave Jaitley’s budget a cautious thumbs up, with the rupee, bonds and stocks buoyant. Ratings agencies also gave their cautious backing to a spending package that produced no nasty surprises on the borrowing side.
