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Boost to Farm Sector

Boost to Farm Sector

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Published by Chinmay Bande
Budget 2011 & implications on Rural Indian scenario!
Budget 2011 & implications on Rural Indian scenario!

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Published by: Chinmay Bande on Mar 01, 2011
Copyright:Attribution Non-commercial


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Boost to farm sector, rural infra
The budget has enhanced allocation for the UPA government’s flagship Bharat Nirman scheme by
Rs10,000 crore to Rs58,000 croreRuhi Tewari
Posted: Tue, Mar 1 2011. 12:01 AM IST 
Economy and Politics
New Delhi: Rural infrastructure and farmers got a boost in Budget 2011,with the government introducing significant fiscal measures aimed at fuellingconsumption in villages.Allocation for the Congress-led United Progressive Alliance (UPA)
government’s marquee rural job guarantee programme, however, remains
mostly unchanged.
In last year’s budget, the government “significantly scaled up the flow of 
resources to rural areas to give a more inclusive thrust to the development
process. The impact is visible in the new dynamism of our rural economy”,
finance minister Pranab Mukherjee said in his budget presentation in
Parliament on Monday.“It has helped India navigate itself rapidly
out of the
quagmire of global economic slowdown.” 
 To develop rural infrastructure, the budget has enhanced allocation for the
government’s flagship Bharat Nirman scheme by Rs10,000 crore to
Rs58,000 crore.Bharat Nirman includes the rural road development programme PradhanMantri Gram Sadak Yojna; the accelerated irrigation benefit programme;rural electrification scheme Rajiv Gandhi Grameen Vidyutikaran Yojna;housing scheme Indira Awas Yojna (IAY), and the national rural drinkingwater and rural telephony programmes.The government has also increased the corpus of the rural infrastructuredevelopment fund
an instrument for routing bank funds for financing ruralinfrastructure
to Rs18,000 crore from Rs16,000 crore in 2010-11.
In addition, the budget has outlined a plan to provide rural broadbandconnectivity to all 250,000 village
in three years.
“There has been a great push for rural consumption and related issues inthis budget,” said Anirban Roy, founder and executive director of Seed
Financial Services, a business correspondent, which is a bank-appointed firmto provide financial services in unbanked areas.
“The finance minister’s putting out the Swabhiman campaign (which brings
banking services to rural areas) and other such measures will give a huge
boost to rural demand,” Roy said.
The budget’s thrust on villages “will not only spur rural dem
and but alsocreate the right ecosystem to sustain the growth... The Indian growth story
which started in the urban areas is now shifting to rural India,” he added.
 The budget has increased the central Plan outlay for agriculture and alliedactivities by 2.6% to Rs14,744 crore.It has increased allocations for the Rashtriya Krishi Vikas Yojana, anagriculture development programme, from Rs6,755 crore to Rs7,860 crore;and enhanced the additional subvention to farmers who repay their croploans on time from 2% to 3%.
“The budget is proactive for the rural sector and will allow the flow of growth
there to continue. For instance, enhancement in allocation to Bharat Nirmanwill promote infrastructure development which will impact wages and
demand,” said Keerti M
isra, partner at MART, a rural marketing consultancy.The budget has increased monthly remuneration for workersin
(government-sponsored daycare centres mostly in villages)from Rs1,500 to Rs3,000 and for
helpers from Rs750 to Rs1,500.About 2.2 million
workers and helpers are expected to benefitfrom this.But for the Mahatma Gandhi National Rural Employment Guarantee Scheme(MGNREGS), which assures 100 days of work in a year to one member of each rural household, the budget has slightly reduced allocation to Rs40,000crore from Rs40,100 crore.
Mukherjee, however, stressed that MGNREGS’ new indexed wage systemwould result in a “significant enhancement” in payment for workers across
the country.

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