The upcoming Union Budget 2016-17 will likely come good on FM Arun Jaitley’s promise to continue the government’s public spending push in North-East India and the Budget will strengthen the growth boosters in this region.
The one sector that needs special attention is agriculture. This is dependent on public investment. Public spending on irrigation and agricultural research and technology are critical for long term growth of the sector. Spending on agricultural extension system will enhance productivity in rural areas where most of the poor reside.
The budget needs to address the needs of farmers and give the agricultural sector top priority. Yields from farming have to be improved to provide for future generations of North-East region. We need to get better at employment generation, for this, private investment, too has to be encouraged.
Infrastructure is a major issue in the NE region. Investments in infrastructure are essential to maintain growth momentum. The coming Budget needs to focus on development of infrastructure to push the acceleration of economic growth in NE region. I expect greater outlays for infrastructure projects in this region which will not only enhance the standard of the NE region’s infrastructure but also provide large scale employment opportunities to our youths.
The Budget for infrastructure development should be allocated appropriately to ensure that the amazing ‘Make in India’ campaign can turn into reality in this region sooner rather than later. Some of the projects that should be given emphasis are- roads, rail, port facilities, power plants- hydroelectricity and solar, electricity, improved accessibility to potable water, improved facilities at hospitals, development of educational infrastructure, promote start-up and entrepreneurial ventures in the North-East region.
The government has been dwelling on social issues such as upliftment of the rural sector, mitigation of adverse weather effects on agriculture. Increased spending on health and education are imperative for sustaining long term growth in this region. The health sector should be given a substantial allocation in the budget and students of NE region encouraged studying medicine. To this effect, the cost of pursuing medical studies should be moderated.
At last, the government could also look at innovative schemes and incentivise private sector employment generation. This way, we could better harness the demographic dividend of the NE region and manufacturing should be given boost.
Prof Mithilesh Kumar Sinha
Finance Officer,
Nagaland University, Lumami
