April-2016 Kurukshetra

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Vol. 64 No. 06 Pages 52 April 2016 22
Budget 2016-17
Empowering
Bharat
The Monthly Journal
Kurukshetra
MINISTRY OF RURAL DEVELOPMENT
al Director General and Head, Publications Division, Ministry of I&B, Govt. of India
ehalf of Ministry of Rural Development, Govt. of India, New Delhi- 110011,
Vol. 64 No. 6 Pages 52
d Published from Soochna Bhawan, New Delhi- 110003. Senior Editor: Ramakrishna Pillai
April 2016
CHIEF EDITOR
Deepika Kachhal
CONTENTS
Senior Editor
mahar singh
v Budget 2016-17 Empowering Bharat Dr. Amiya Kumar Mohapatra 5
Editor
Divyanshu Kumar
v A Step Towards Gram Swaraj Dr. Sher Singh Sangwan 9
Joint Director (Production)
Vinod Kumar Meena v Bringing Water to Every Field Naleen Kumar 13
COVER DESIGN
Asha Saxena v Skill, Education and Jobs for Rural India Jai Prakash Pandey 16
EDITORIAL OFFICE
ROOM NO. 686, v Bringing Health to the Underprivileged Abhirup Bhunia 20
Publications Division,
Soochna Bhawan,
C.G.O. Complex, Lodhi Road, v Building Roads for Rural Prosperity Manoj Varghese 23
NEW DELHI-110003
Phone : 011-24362859
E-MAIL : kurupage@yahoo.co.in v Dawn of Digital Empowerment Osama Manzar,
Rajat Kumar,
FOR SUBSCRIPTION ENQUIRIES, Udita Chaturvedi 26
RENEWALS AND AGENCY
INFORMATION
PLEASE CONTACT: v A Boost to Organic Farming Dr. Harender Raj Gautam,
JOURNAL UNIT, publications division Dr. Rajesh Kaushal 30
ministry of i & b, ROOM NO. 48-53,
soochna bhawan, CGO COMPLEX,
LODHI ROAD, NEW dELHI-110 003 v A Sanjeevani for Livestock Sector Dr. M J Khan 34
Tele : 24367453
Fax: 24365610 v Both Budgets Going Green Dr. Rina Mukherji 37
E-MAIL : pdjucir@gmail.com
WEBSITE : publicationsdivision.nic.in
v One India, Great India Sunil Kumar 41
SUBSCRIPTION* :
INLAND
1 YEAR : ` 230 v Inclusive Budget 2016-17 Dr. K. K. Tripathy 43
2 YEARS : ` 430
3 YEARS : ` 610
ABROAD (AIR MAIL) v Rail Budget 2016-17:
ONE YEAR Connecting India, Creating Jobs Devendra Kumar 47
` 530 (SAARC COUNTRIES)
` 730 (OTHER COUNTRIES)
* revised fro m April, 2016
issue onwards
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Kurukshetra seeks to carry the message of Rural Development to all people. It serves as a forum for free, frank and serious discussion on the
problems of Rural Development with special focus on Rural Uplift.
The views expressed by the authors in the articles are their own. They do not necessarily reflect the views of the government or the organizations they
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Editorial
U
nion Budget 2016-17 was presented in a very challenging environment. Odds were many, both
internal and external. Two successive weak monsoons had left agriculture and rural India in
difficult situation. Global economy has been sluggish for a while, affecting the exports. Above this
all, was the pressure to contain fiscal deficit within limits else the fear of losing investors confidence in
Indian economy.
In his third budget, presented on 29 th February 2016, the Finance Minister seems to have balanced
out these odds. On fiscal front, he highlighted the need to review FRBM Act but remained committed to
fiscal consolidation, saying, I have weighed the policy options and decided that prudence lies in adhering
to the fiscal targets. At the same time, he allotted enough funds for agriculture, rural development, social
sector and infrastructure.
This makes the budget an inclusive budget in true sense. It is a budget for Bharat, a budget for
the toiling masses, who work in muddy fields, on roads transporting essentials, in markets selling the
vegetables They would all now be beneficiary of a new health protection scheme in which senior citizens
get an extra medical care, and rightly so. Three thousands Jan Aushadhi Stores have been announced to
help reduce health expenses. Women in BPL category are be provided LPG connections for which Rs 2000
crore have been allocated.
Agriculture, mainstay of this country, has got a good share in the budgetary allocations. Close to Rs
36000 crore have been given for agriculture and farmers welfare. Pradhan Mantri Krishi Sinchai Yojana
will be implemented in mission mode to bring 28.5 lakh hectare under irrigation. 89 long pending irrigation
projects have been fast tracked, a Long Term Irrigation Fund is created with Rs 20000 crore and a programme
would be implemented for management of ground water resources. These steps taken together would
certainly help usher in a second green revolution.
Pradhan Mantri Gram Sadak Yojana would connect remaining 65000 eligible habitations. This will
generate employment in rural areas and help villagers access amenities like school, hospital, markets etc.
Electrification would be done in all remaining villages. A new Digital Literacy Mission Scheme is announced
to educate 6 crore households in next three years. This would effectively bridge digital divide and bring
Bharat closer to India. Digitization of land records and school certificates is another innovative step.
Along with several green initiatives, further fillip is given to organic farming through Paramparagat
Krishi Vikas Yojana and Organic Value Chain Development in North East Region. These schemes will certainly
help in making agriculture sustainable. Also, it would boost our exports, as developed countries have huge
demand for organic products. Several schemes announced for dairy sectors would not only help in income
generation through dairying activities but also support organic farming.
The budget aims to realise the dream of Gram Swaraj by addressing the biggest lacunae that
Panchayats face lack of funds. Rs 2.87 lakh crore have been allocated for Panchayts and municipalities.
The Budget proposals have been well received across the all sections of the society. However, the real
test lies in their implementation, and it will have to be ensured that the benefits reach the right person.
4 Kurukshetra April 2016

Budget 2016-17
Budget 2016-17: empowering bharat
Dr. Amiya Kumar Mohapatra
"I will give you a talisman. Whenever you are in doubt, or when the self becomes too much with you, apply the following test. Recall
the face of the poorest and the weakest man [woman] whom you may have seen, and ask yourself, if the step you contemplate is
going to be of any use to him [her]. Will he [she] gain anything by it? Will it restore him [her] to a control over his [her] own life and
destiny? In other words, will it lead to swaraj [freedom] for the hungry and spiritually starving millions?
Then you will find your doubts and your self melt away."
Mahatma Gandhi
I
nclusive growth is multifaceted and can be agricultural development. Considering the above
addressed as growth with justice. Here justice fact, our Finance Minister has taken well thought
signifies economic, social and political equality steps in allocating more funds to the agricultural
among all the people of a country. Inclusive growth sector. Rural India is synonymous with agriculture and
in itself does not have any automatic mechanism to development of both is intertwined. Contribution
reach the deprived and excluded section of society; of agricultural sector to GDP is only 13.9 per cent,
rather it is the outcome of planned and thoughtful but it accommodates nearly half of our workforce.
course of actions of the government. Democracy will This contribution of agricultural sector to rural
lose its shine if the deprived masses will not be able employment and rural livelihood itself signifies its
to receive the benefits of progress in the country. national importance.
Inclusive growth planes for whataccommohas odates
remained
nearlly half of our
o workforcce. This conntribution off agriculturaal sector to rural
unplanned and reaches the unreachable. It requires
employm ment and rura
al livelihood Budget
d itself hasitsnine
signiffies pillars
nationnal importanfor
nce.transformation of
implementing plans and programmes that uplifts the India, where the first two are Agriculture and Rural
h nine pilllars forDevelopment.
Budget has trannsformation of These two sectors would certainly beand
India, whhere the firs
st two are A
Agriculture
social and economic status of the deprived sections
Rural Development
D . These twoo sectors wouuld certainlyy be monumeental in makking developpment
of society. inclusivee.
monumental in making development inclusive.
Budgets have been a key policy instrument in Agriculturalness

Agriculttural Creditt Support foor Inclusiven
Credit Support for Inclusiveness
attaining an inclusive society. TheAgricultu
core ural
objectives
of the budget are to reduce poverty andnt.
growth depends uppon
inequality, Agricultural
various factorsgrowth
and amongdependsm; creditupon
them is one ofvarious
the most
importan Availabillity and acccess to eassy credit is indispensabble to enhaance agricultural
to reduce unemployment throughproductiojob creation,
on to meet to
th
factors and among
he rising foood demand for
them; credit is onewofmaterials
fo our growing populatiion, and raw
the most foor the
maintain price stability and to foster faster economic
industry. important. Availability and access to easy credit is
growth and social development by addressing all the indispensable to enhance agricultural production
Hence, thhe provision
needs of various segments of the society. If we take to meet
n of agricultu theinnrising
ural credit food
the union demand
budget, is on for our
o a continu growing
uous rise oveer the
years. It has increassed from
a holistic overview of the budget 2016-17, population,
Rss. 3,75,000andc raw
crores materials
(20100-11) to Rsfor the industry.
. 9,00,000 c
crores (20166-17),
m inthan
means more terms
twoo times over the period ofo six years.
of its intent and focus, it is found Rupees in crore
that there is clear mandate for the
Groowth of Agricultur
A al Credit
development of rural economy and 10000000 900000
850000
focus especially on rural welfare, 9000000 800000
8000
000
700000
farming and allied activities. 7000
000
575000
6000
000
475000
0
Agricultural Development in 5000
000
375000
0
Budget 4000
000
3000
000
2000
000
Economics of wellbeing, in 1000
000
rural India, rests on economics of 0
agriculture. Empirical evidences 2010-1

11 2011-12
2 2012-13
3 2013-14
4 2014-15 2015-16 2016-17
show that improvement in the life F
Fig.1-
Fig.1- Source:
Sourcee: Authors Compilation
Authors Compilation from
n from Budget
Budge Documents
et Document and
ts and Media Media
a Reports
of poor; is directly connected to the Reports
Governmment intends to infuse sooft cash to thhe stressed farmers.
f Nott only the floow of farm credit
c
has increeased considerably but also target intterest rate haas been reduuced from tim me to time. Also,
A
Kurukshetra April 2016 to encouurage those who are making
m timely payments, and to redduce the interest burdeen5on
farmers, governmentt has made provision of Rs.15,000 crores c as inteerest subventtion.
Adding further,
f the government
g of India annnounced thee launch of much m needeed crop insurrance
scheme for
f the farmeers; named as a Prime Miinister Fasall Bima Yojanna with a fuunding suppoort of
Rs. 5,5000 crores. Thiis will certaiinly give spaace and relieef to the disttress farmerss from the shhocks
Hence, the provision of agricultural credit in the Improved irrigation facilities and efficient water
union budget, is on a continuous rise over the years. usage are crucial to enhance farm productivity. The
It has increased from Rs. 3,75,000 crores (2010-11) gap between gross cropped area and gross irrigated
to Rs. 9,00,000 crores (2016-17), means more than area need to be further reduced.
two times over the period of six years.
The government started the Pradhan Mantri
Government intends to infuse soft cash to the Krishi Sinchai Yojana, aimed at provision of water to
stressed farmers. Not only the flow of farm credit every farmer covering around 28.50 lakh hectares
has increased considerably but also target interest of land and improve the use of water efficiently
rate has been reduced from time to time. Also, to to get Per Drop More Crop. Government has
encourage those who are making timely payments, proposed to spend Rs.17,000 crores to achieve the
and to reduce the interest burden on farmers, above said targets. Besides, 89 irrigation projects
government has made provision of Rs.15,000 crores under AIBP will be scrutinized by setting specific
as interest subvention. time frame. This will help to irrigate around
Adding further, the government of India 80.6 lakh hectares of land and requires Rs. 86,
announced the launch of much needed crop 500 crores to meet the expenses in the next five
insurance scheme for the farmers; named as Prime years. Focus on irrigation will surely enhance our
Minister Fasal Bima Yojana with a funding support agriculture productivity and that would help in
of Rs. 5,500 crores. This will certainly give space and containing current account deficit through higher
relief to the distressed farmers from the shocks of agricultural exports.
repeated crop failure due to uncertain monsoon and
climate change. Unified National Agricultural Market
As a welfare initiative, government intends
Pradhan Mantri Krishi Sinchai Yojana : Fostering
to increase the income of farmers by creating a
Irrigation
unified national agriculture market. At present, farm
Farming is still, significantly dependent on producers, due to lack of knowledge and information
monsoon in India. Out of net total arable lands, only asymmetry, sell their produce in the market even
46 per cent are irrigated and even the distribution below the price that can cover their input costs.
of irrigation facilities across states is highly skewed. Thus, farmers often feel distressed and discouraged
Table-1
Total Budgetary Provision/Outlay for Agricultural Development
S. No Sectors/ Schemes for Amount in Rs. Crores

Agricultural Development
1 Total Agricultural Outlay on Farmers Welfare 35,984
2 Agricultural Credit 9,00,000
3 Interest Subvention on Farm Loans 15,000
4 Dairy Development 850
5 Sustainable Management of Ground Water Resources 6,000
6 Land Information Management System 150
7 Soil Health Cards 368
8 Organic Value Chain Development in North East Regions 412
9 Irrigation Projects 17,000
10 NABARD ( Corpus for Irrigation) 20,000
11 National Food Security Mission (Pulses) 500
12 Prime Minister Fasal Bima Yojana 5,500
Source: Authors Compilation from Budget Documents and Media Reports

to continue in farming. To overcome such problems, Pradhan Mantri Gram Sadak Yojana
the current budget has planned to create a unified
Special emphasis is laid on rural road
national agriculture market for farming where
connectivity under the Pradhan Manti Gram Sadak
farmers can discover the price and would be able to
Yojana for which Rs. 19,000 crores are allocated.
sell their produce at a higher price and at anytime This is highest of all the times and quite huge in
and anywhere. Once the unified national agricultural comparison to 2012-13 allocation of Rs.8,885 crores
market gets established, farmers would not have and Rs. 9,805 crores in 2013-14. In addition, the total
to depend upon the local produce marketing fund allocated to the roads including the states share
committees and will not get exploited. is Rs. 27,000 crores. To take it further, government
targets to complete 2.23 lakh kilometre of road by
Dairy and Allied Activities
2021 to connect 65,000 eligible habitations. This is a
To safeguard the continuity of farmers income, welcome step which will facilitate interconnectivity
government is pushing non-farm income through among villages as well as with urban counterparts.
promotion of dairy and other allied activities. In This would foster business and trade among villages
this budget, government has taken up four projects and cities and thereby enhancing the standards of
at the cost of Rs. 850 crores to provide alternative living of the people.
sources of income to the poor farmers through MGNREGS
better dairy activities. These projects includes;
Pashudhan Sanjivani Animal Wellness Program and Under MGNREGS, government has proposed
Provision of Animal Health Cards, Advanced Breeding to take up 5 lakh farm ponds and dug wells in the
Technology, Creation of e-Pashudhan Haat and rain-fed areas and 10,00,000 composite pits for
production of organic manure. In total, government
National Genomic Centre for Indigenous Breeding.
has to set aside an amount of Rs.38,500 crores for
Rural Development In Budget programs of rural development under MGNREGS.
To ensure water conservation and natural resources
In India, 69 percent of the total population management, Cluster Facilitation Teams will be
lives in villages and therefore rural development started under the MGNREG which would not only
itself signifies its importance. Our economic growth generate income through various works but also
and social development largely depends upon the help in creating community assets.
success of a range of schemes for rural development.
However, these initiatives and schemes of rural Sanitation and Electricity Connectivity
development should be redefined in order to To improve sanitation and cleanliness
customize them to the current needs of the people. especially in rural India, government has made
Current budget does focus on this. provision of Rs. 9,000 crores for Swachh Bharat
Table-2
Total Budgetary Provision/Outlay for Rural Development
S. No Sectors/ Schemes of Rural Development Amount
in Rs. Crores
1 Grant in Aid ( Gram Panchayats and Municipalities) 2, 87,000
2 Deen Dayal Upadhyaya Gram Jyoti Yojana 8,500
3 Swachh Bharat Mission (Rural India) 9,000
4 Rashtriya Gram Swaraj Abhiyan 655
5 Land Information Management System 150
6 Pradhan Mantri Gram Sadak Yojana 19,000
7 MGNREGS 38,500
8 Rural Development (Total Outlay) 87,765
Source: Authors Compilation from Budget Documents and Media Reports
Kurukshetra April 2016 7

Abhiyan, as a part of social infrastructure Government has started a Stand up India
development. Scheme to promote entrepreneurship among SC/ST
and women. Rs. 5,000 crores has been provided for
Electricity connectivity in the villages is essential this scheme which will benefit 2.5 lakh entrepreneurs,
for the improvement in quality of life. So to achieve mostly from rural areas.
the same, the government planned to spend Rs.
8,500 crores under Deen Dayal Upadhaya Gram In addition to the above, government has
Jyoti Yojana to provide 100% electricity connections proposed to set up National Scheduled Caste and
to the rural households in the next three years. Scheduled Tribe Hub in partnership with industry
associations and thereby help in connecting
Digital Bharat bottom of the pyramid in its inclusive development
framework.
To spread digital literacy among the rural
masses, government has already approved two Concluding Remarks
programs namely; National Digital Literacy Mission The announcement of an increase in
and Digital Saksharta and targets to cover six crore expenditure on agricultural and rural development
households to make them digitally literate in the in the budget signifies their sectoral importance
rural India in the next three years. in our economy. But agriculture sector is facing
formidable challenges over years and a large
Other Initiatives For Inclusiveness number of farmers want to quit agriculture as
The government is committed to work for their main occupation. Most of them do not have
inclusiveness which is clearly reflected in the budget easy access to institutional finance / credit and a
statement and budget speech especially in the large proportion is still dependent upon informal
concluding part. Some measures in this regard are: sector for finance. Besides, failure of crops either
due to heavy rain or due to draught also adds to
Government has declared in this budget to their misery. Hence, the governments approach
provide LPG connection to BPL Households only in to support agricultural sector is just and necessary
the name of the women households of these poor which is visible in the current budget. Further,
families. This will not only economically support these targeting rural development in itself opens the
people but also reduce the environmental pollution road for inclusive development. Planning is not
to its minimum. So, to achieve the same, Rs. 2,000 enough unless it is properly implemented within
crores is allocated for the initial cost of providing LPG the given time and resource constraints. However,
connections this fiscal year. This will benefit more we are looking forward to positive outcome of
than one crore and fifty lakhs households those are the budget; through good governance, prudent
expenditure management, close monitoring,
below poverty line.
clear cut accountability and timely execution with
To support institutional financing and promote apt follow up of the various schemes meant for
microfinancing, mostly in the unbanked sectors; agricultural and rural development in India.
especially in the rural areas, the government has [author is Associate Professor (Economics)
sanctioned an amount of Rs. 1, 80,000 crores under and Coordinator of Strategy, Entrepreneurship and
Pradhan Mantri Mudra Yojana (PMMY). This will General Management Area at Fortune Institute of
give boost to entrepreneurship at the village level International Business (FIIB), New Delhi. E-mail:
through funding support. amiyacademics@gmail.com]
Kurukshetra
Forthcoming Issue
May 2016 : Renewable Energy

Budget 2016-17
A Step Towards Gram Swaraj
Dr. Sher Singh Sangwan
This level of funding may be considered adequate to deliver the basic services....However, prioritization of activities and
transparency in utilization of the funds received by Gram Panchayats are the challenge to ensure the sustainability the grants.
B
udget 2016-17 was path breaking in more spend this money and what challenges they may
than one ways. Apart from giving the much face with increased grants.
desired fillip to rural development and
agriculture, Budget took some bold initiatives Trends in Allocation of Funds by Central
in the area of rural political economy. True to Finance Commissions (CFCs)
the spirit of fiscal federalism, Finance Minister After the 73rd & 74th Amendment, the states
announced- were required to set-up State Finance Commission
A sum of Rs 2.87 lakh crore will be given as (SFC) within a year after 1994, to provide resources
grant-in-aid to gram Panchayats and municipalities for the Rural Local Bodies (RLB) and Urban Local
as per recommendations of the 14th Finance Bodies (ULB). Most of the States have already set
Commission. This is a quantum jump of 228 per up four SFCs and the fifth may be working in some
cent compared to the previous five-year period. States. The grant amounts awarded since 1995 by
various CFCs are shown in the following table:
He further added, The funds now allocated,
translate to an average assistance of over Rs 80 It can be observed that since 2005, percentage
lakh per gram Panchayat and over Rs 21 crore per increase in grants to Urban Local Bodies (ULB) has
urban local body. These enhanced allocations are been more than that of Rural Local Bodies (RLB).
capable of transforming villages and small towns. It may be due to higher rate of increase in urban
Ministry of Panchayati Raj will work with the states population compared to rural.
and evolve guidelines to actualise this. A tilt towards the Gram Panchayats
The 14th CFC has recommended that its
entire grant amount allotted to Rural Local Bodies
will go to Gram Panchayats only, which are directly
responsible for the delivery of the basic services
to the people. Earlier Gram Panchayats were
getting only 75 per cent of the CFCs grant and the
remaining 25 percent was shared by State (5 per
cent), Zila Parishad (10 per cent) and Block Samitis
(10 per cent). The State Governments will have
to take care of Zila Parishad and Block Samitis
from their own funds. This means that the Gram
Panchayats will get 25 per cent more now. Thus it
Scarcity of funds was always cited as the is clear that, 14th CFC and the budget 2016-17 have
biggest constraint for Panchayats in delivering shown a tilt towards the Gram Panchayats in fund
their intended role as envisaged by our allocation.
constitution. Now, this problem stands redressed
to a great extent by Finance Ministers generous
How this grant will be distributed?
announcement. In this paper, we have tried to see Total grant announced in Budget, would be
the ramifications this move on Gram Panchayats. distributed among states and Gram Panchayats on
Also we have discussed, how Panchayats should the basis of a simple revised formula. The money

Table- Trend in Allocation of Funds to Local Bodies since 1995 (Rs crore)
CFC No & Award Amount Increase over the previous (%)

Award Period
RLBs ULBs Total RLBs ULBs Total
X(1995-2000) 4381 1000 5381 - - -
XI(2000-2005) 8000 2000 10000 82.61 100.00 85.84
XII(2005-2010) 20000 5000 25000 150.00 150.00 150.00
XII(2010-2015) 64408 23111 87519 222.04 362.22 250.08
XIX(2015-2020) 200292 87144 287436 210.97 277.07 228.43
Total/average 297081 118255 415336 166.41 222.32 178.59
Source: Report of 14th Central Finance Commission, Chapter 9, pp. 98-125.
would be distributed among states by giving 90 disburse the amount with interest from its own
percent weight to 2011 population and 10 percent resources. These specific guidelines would ensure
weight to the area. States may follow the same timely release of central grant in the specific
formula to distribute money to Gram Panchayats, months, which will enable the Panchayats to plan
else they may follow the formula given by State and execute better.
Finance Commissions before 15th March 2016.
How to further augment Panchayats
Need to maintain proper records resources
Almost all CFCs after 1995 have raised the Besides, the amount allotted by budget,
issue of non-availability of reliable data, especially Panchayats may be allowed to levy property tax
income and expenditure accounts of the Local
on buildings and vacant lands and collect tax on
Bodies. 14th CFC has tried to find a solution to this.
advertisements & entertainment activities like
It has decided to provided 10 percent of total grant
boat ride, cable-television, internet cafes, etc.
as performance grants.
State Governments should also share a part of land
Only those Gram Panchayats would be use conversion charges and taxes on professionals
eligible for this performance grant that (i) submit and traders with the Panchayats of the area. The
their annual audited accounts and (ii) make Panchayats may also collect non-tax revenue from
improvement in their own revenues. The Urban ponds, orchards, minor mineral quarry, etc in their
Local Bodies, in addition to the above conditions, area.
have also to publish benchmark of the basic service
each year, to make it known to the public. Are the funds adequate?
Funds will be released on time This level of funding may be considered
adequate to deliver the basic services. Besides,
Delay in disbursement of funds from the
there will be some supplementary funds from the
States is a common concern raised by Panchayats in
SFC and own revenue. Recommendation of the
most of the States. To bring efficiency in disbursal,
14th CFC to transfer of its entire amount to GPs is a
the 14th CFC has directed that amount of grants
are to be released in two installments during the remarkable decision which will help in addressing
year in the months of June & October. The first the increasing difference in quality of life between
installment will be 50 percent of the basic grant rural and urban areas. Such decisions to transfer
and the remaining basic & performance grants will funds and functionaries in remote and rural areas
be released in the 2nd installment. Also the States are the need of day in view increasing rural urban
have to release grants to Panchayats within 15 inequalities. However, prioritization of activities
days of its being credited to their accounts by the and transparency in utilization of the funds
Union Government. In case of delay, the State will received by gram Panchayat are the challenge to

ensure the sustainability the grants. In this regard, Rashtriya Gram Swaraj Abhiyan (RGSA).
capacity building of GPs and planning of activities
are sine qua non. In his budget speech, Finance Minister
proposed a new scheme, Rashtriya Gram Swaraj
Challenge: We need to train our Sarpanches Abhiyan to help Panchayat Raj Institutions deliver
Sustainable Development Goals. The details of
Once the main lacunae i.e. scarcity of funds,
the programme are yet to be announced but
is addressed; then comes the next question- are
our Gram Panchayats capable of delivering the the provision of Rs 655 crore may be used for
services efficiently by utilizing these funds in best Panchayat Shasktikaran (empowerment). The
possible ways? If not, then what need to be done above suggested programmes for the training of
to enable them for this? Panchayat representatives would certainly help here
too. Further, Digital Literacy Mission announced
Non-prioritization and mis-utilisation of in the budget can help bring transparency and
funds are general complaints about Sarpanches. accountability within local bodies.
It may be partly due to the tied funds but largely
due to lack of proper planning. The role of Gram
Panchayat representatives is not only advisory
like that of MLAs and MPs but they have to plan
and execute themselves. In this regards, their
capacity building is the first requirement.
First step towards capacity building
should be maintaining the records of the funds
received and their expenditure. Traditionally,
it has been left to Gram Secretary, who rarely
completes the accounts on time due to inability
of Gram Panchayats to supervise. Now educated
representatives are being elected in Panchayats, How Panchayats should utilise their increased
especially after imposition of education condition funds?
in Rajasthan and Haryana. It may be easier to Most of the Sarpanches are operating from
train these educated representatives. their homes in most of the villages, especially in
Usually there is only one junior engineer for northern India. As on March 2013, only 75 percent
whole of the block consisting of 100 villages and of Panchayats are having Panchayat Ghar at all
the Sarpanch has to keep chasing him for the work. India level but their number of Panchayat Ghar
He often takes months to approve the estimates is less in Himachal, Haryana, Punjab, Jharkhand,
and even seeks illicit payments. Capacity building Uttar Pradesh, Bihar and J&K. The states with
should equip even the least educated Sarpanch/ 100 percent Panchayat Ghar (Rajasthan, Kerala,
West Bengal, Chhattisgarh, Karnataka, Gujarat)
Panch so that he/she is able to prepare the
are known for better functioning of their Gram
outline of the commonly standardized works that
Panchayats.
Gram Panchayats undertake. This would help in
expediting the approvals. It is suggested that Panchayat Ghar should
be designed as an all activity building including
Besides, Gram Panchayat representatives
general assembly hall for meetings of Gram
are involved in non-fund based activities like
Panchayat, SHGs, farmers club, etc with separate
resolving disputes of villagers, coordinating with
rooms for Sarpanch/Panches, village library, bank,
development departments regarding government
society, etc within one boundary.
schemes, liaison with banks for financial inclusion
and forming self help groups, farmers club, etc. Safe drinking is another priority and reverse
Modules should also be prepared for such need osmosis has been installed at the source in some
based training. villages. It would be a big positive step if RO is

installed in the remaining villages. During our The culture of purchasing from malls is
planning for villages under backward region grant also increasing and therefore bigger Gram
funds, drainage of waste water was a common Panchayats can also plan modern markets with
demand in many villages of Haryana and Punjab. shops to be rented to individuals. Through such
Toilets and washrooms have been constructed assets, the Panchayats can generate revenue
in most of the houses in villages and therefore, and employment within the village. Increased
the planning for sewerage is also necessary. budgetary allocations would certainly take care
Increased grants in the budget can be used for of financial requirements for above activities.
abovementioned purposes. Also support can be availed for this from Rurban
Cluster Mission and National Digital Literacy
They should focus on maintenance Mission announced in the budget.
Maintenance of public water posts and village Some policy suggestions
ponds requires continuous attention for supply of
safe water to human and cattle. The Street-roads, It is common knowledge and even ascertained
footpaths, drains for used water and culverts in a survey (Sangwan, 2015) that among the GP
are constructed in many villages but their repair representatives, it is the Sarpanch (Pradhan) who
and regular maintenance is lacking. Maintenance is approached by almost all government, non
of street lights is also necessary for safety and government, or bank officials for any activity or
security, especially for women who work early in enquiry in the villages. Sarpanch is not only hard
the morning to feed and milk the cattle. pressed to devote his time, but he also arranges
for the hospitality of the visitors whereas the
Heaps of dung & bio-waste are seen at the Panches (elected ward members) of the Gram
entry of any village, which can be replaced by proper Panchayats are rarely approached.
compost-pits and the manure can be auctioned to
earn revenue for the Panchayats. Cremation and Now, when Gram Panchayats are given more
burial grounds are provided in villages but some funds and expected to carry out so many works
sheltered places, specifically for performing rite as discussed above; the active involvement
in rains are needed. Community halls can be built of Panches is sine qua non. Now, in states like
where barat can stay and other cultural activities Haryana and Rajasthan, educated Panches even
can take place. Stadium and common seating upto graduation have been selected, thought may
places are also there in many villages but poor be given for decentralisation at Gram Panchayat
maintenance has left them unusable. So Gram level by allocating different departments among
Panchayats can focus on these activities as budget the Panches.
fills their wallet. Concluding remark
Panchayats may provide urban facilities Increased grant for Gram Panchayats in
Budget 2016-17, is a positive step towards
Every villager has to go to nearby town/city
realising Gram Swaraj in true sense. With
to purchase for his necessities, to get application
increased money come the challenges of
forms for social security, job, admissions, to
increased corruption and mis-utilisation. Hence
check his/her exam results, for payment of bills,
capacity building is a must for Gram Panchayats,
booking of tickets, etc. Information regarding
which can be achieved through proper training.
climate, prices of agriculture commodities and
Transparency can be assured by using measures
their online sale etc are available on internet.
such as Aadhar linked DBTs and IT in Local Bodies
Panchayats may ensure an internet-cafe for
governance. If used judiciously, this grant by the
these services and for general use, preferably at
Finance Minister holds the promise of bringing
the Panchayat Ghar. Better, it could be leased
democracy to the last person in Indias villages.
to somebody for operation at reasonable prices
fixed by Gram Panchayat. This way Panchayats (Author is Professor SBI Chair, Centre for
would also be able to improve computer research in Rural and Industrial Development
literacy. Chandigarh. Email: drsangwan8@gmail.com)

Budget 2016-17
Bringing Water To Every Field
Naleen Kumar
The present government has made irrigation a priority after two consecutive monsoon failures, in a country where over half of
the farmlands are rain-fed.
W
hen the Prime Minister Shri Narendra Emphasising the need to strengthen
Modi last year outlined a plan for the Pradhan Mantri Krishi Sinchai Yojana (PMKSY),
second Green Revolution in the country, Shri Jaitley announced its implementation in
in his speeches he was mostly elaborating on the mission mode so that the projects get completed
importance of adopting scientific methods, like soil in time accruing benefits to the farmers. He said
health tests, for enhancing food grain production. that 28.5 lakh hectares of agricultural land would
However with the Budget 2016-17, it is now quite be brought under irrigation by this Scheme.
clear that his government was contemplating
Pradhan Mantri Krishi Sinchayee Yojana
a slew of initiatives to make it happen, with a
(PMKSY) has been conceived by amalgamating
big thrust on expansion of irrigation across the
ongoing schemes viz. Accelerated Irrigation
country.
Benefit Programme (AIBP) of the Ministry
Overall allocation of resources for the Ministry of Water Resources, River Development &
of Water Resources has increased from Rs 7,431 Ganga Rejuvenation, Integrated Watershed
crore last year to Rs 12,517 crore in this Union Management Programme (IWMP) of Department
Budget. In the same way allocation for Ground of Land Resources (DoLR) and the On Farm
Water Scheme has been enhanced by 85 per Water Management (OFWM) of Department of
cent and another major program for sustainable Agriculture and Cooperation (DAC).
Ground Water Resources with an allocation of Rs
6,000 crore has been approved.
It is well documented that among various
measures behind the grand success of Indias first
Green Revolution in 1960s, the two most important
measures were use of high yielding varieties of
seeds and expansion of irrigation infrastructure. For
the latter the government undertook a number of
minor, major and multipurpose irrigation projects
to supply sufficient water to cultivate lands so that
the dependence of farmers on rainfall reduced to
great extents. It has been formulated with the vision of Har
Khet Ko Pani (Water for every field) and improving
The present government has made irrigation
water use efficiency by More crop per drop in a
a priority after two consecutive monsoon failures,
focused manner. Scheme provides with end to
in a country where over half of the farmlands are
end solutions on source creation, distribution,
rain-fed. In his Budget speech, the Finance Minister
management, field application and extension
explained the need to address the issues of optimal
activities. The major objective of PMKSY are
utilisation of water resources and to create new
listed below. The scheme is being implemented
infrastructure for irrigation. He said, Irrigation is a
by Ministries of Agriculture, Water Resources and
critical input for increasing agriculture production
Rural Development.
and productivity. Out of 14.1 crore hectares of net
cultivated area in the country, only 46 per cent is The Budget this year focuses on augmenting
covered with irrigation. irrigation coverage through massive investments

The broad objectives of PMKSY
a. Achieve convergence of investments in irrigation at the field level (preparation of district level and,
if required, sub district level water use plans).
b. Enhance the physical access of water on the farm and expand cultivable area under assured
irrigation (Har Khet ko pani).
c. Integration of water source, distribution and its efficient use, to make best use of water through
appropriate technologies and practices.
d. Improve on-farm water use efficiency to reduce wastage and increase availability both in duration
and extent.
e. Enhance the adoption of precision-irrigation and other water saving technologies (More Crop Per
Drop).
f. Enhance recharge of aquifers and introduce sustainable water conservation practices.
g. Ensure the integrated development of rain-fed areas using the watershed approach towards soil
and water conservation, regeneration of ground water, arresting runoff and providing livelihood
options.
h. Promote extension activities relating to water harvesting, water management and crop alignment
for farmers and grass root level field functionaries.
i. Explore the feasibility of reusing treated municipal waste water for peri-urban agriculture.
j. Attract greater private investments in irrigation.
over the next five years. In the Budget speech, the of these have been pending for decades. Since
Finance Minister has announced putting all the the beginning of AIBP, 297 major and medium
89 active major irrigation projects under AIBP, irrigation projects and 16,769 minor projects
on fast track. These projects will help irrigate 80.6 have been approved for funding. Only 143 of
lakh hectares. Shri Jaitley said, These projects the major ones have been completed, and 89 of
require 17,000 crore next year and 86,500 crore in them are in different stages of co nstruction. It
the next five years. We will ensure that 23 of these is these that the government has now decided
projects are completed before 31st March, 2017. to put on fast track. The remaining 65, which are
He promised to raise the funds needed to finance yet to start, are likely to be reviewed to assess
these projects, both through budgetary and extra- whether it would be feasible to go ahead with
budgetary resources. them at all.
Accelerated Irrigation Benefit Programme The major projects under AIBP require a lot
(AIBP) was launched in 1996-97 to provide central of money for completion. For example, after the
assistance to major/medium irrigation projects. completion of 23 projects in phase-I by the fiscal
Priorities were also given to those projects which end, another 23 projects expected to be completed
were in tribal and drought-prone areas. Projects by 2019-20 in phase-II, requiring an outlay of Rs
covering an area above 10,000 hectares, are 47,536 crore.
classified as major projects, those between 2,000
To complete the priority projects the Centre
and 10,000 hectares, as medium and below 2,000
and States will be working together in mission
hectares as minor projects. Most of these 23
mode. A committee including Irrigation Ministers
projects to be commissioned by the end of next
of Telangana, Chhattisgarh and Maharashtra
fiscal year, fall in major category.
alongwith Principal Secretaries of some other
The task of completing the rest of active States has been constituted to bring more synergy
projects is really huge considering that some to this exercise.

Another emphasis of the government has to support sustainable groundwater resource
been to bridge the gap between the already management and creation of an environment
created irrigation potential and the area actually for reforms. The project will be completed in six
being irrigated. The existing gap between year with financial outlay of Rs 6000 crore, half
potential created and potential utilised ranges of that will come as IBRD loan. The Project will be
from 2.4 crore ha to 4.7 crore ha. That means implemented in identified water-stressed areas
these projects are serving substantially lower of Haryana, Rajasthan, Gujarat, Maharashtra and
area and lesser number of farmers that they are Karnataka.
actually meant to.
In addition to the above provisions, in rain-
The finance minister has also announced fed area 5 lakh farm ponds and wells also will be
creation of a dedicated Long Term Irrigation Fund arranged under MGNREGA.
under the National Bank for Agriculture and Rural
Development (NABARD) with an initial corpus of Substantial allocations for irrigation in
about 20,000 crore. The NABARD has been asked Budget are bound to have a net positive effect
to take the market route to raise further money. on enhancing agricultural productivity. This,
One of the options would be the issuance of tax along with other measures to boost rural market,
free bonds. will have a butterfly effect for Indian economy,
especially in job creation. Many experts argue that
India is the largest user of groundwater in a small boost in agriculture sector creates more
the world. An estimated 230 cubic kilometers of jobs than a similar growth in any other sector of
groundwater per year is extracted over a quarter the economy. On top of this, if monsoon proves
of the global total. More than 60 per cent of good this year and oil prices remain low, agriculture
irrigated agriculture is dependent on groundwater sector may punch above its weight.
(along with 85 per cent of drinking water
supplies). A National Groundwater Management (Author is senior journalist and has worked for
Improvement Project (NGWMIP) is proposed PTI & the BBC. Email: naleenkumar@gmail.com)

Budget 2016-17
Skill, Education and Jobs For Rural India

Jai Prakash Pandey
Journey from job seeker to job creator has to be travelled. Skill India program has to train millions of youths in various vocational
and technical courses.
I
ndian economy has immense possibilities to shortage of teachers has made the situation worse.
grow. Growth of economy accelerated to 7.6% in Economic growth demands a constant supply of
2015-16. India is a country with around 30 crores skilled manpower for which first step is quality
of the youth in the age group of 20 to 40 years. primary education. Budgetary focus in this regard
Unleashing the entrepreneurship and innovative is a positive step. Announcement to open 62 new
potentials of these youths is essential to boost the Navodaya Vidyalayas, will certainly enhance the
Indian economy. Education, skill development and quality education for rural children.
job creation is key to engage them in productive
Proposed Higher Education Financing Agency
manner. Budget 2016 has announced a sequence
(HEFA) with an initial capital base of Rs. 1000 corers
of measures to enhance rural economy through
would be an economic springboard for the Indian
Transform India which would have significant
education sector. It would benefit both the students
impact on economy and lives of the people.
as well as the financial system. Prospect of HEFA
Ensuring macro-economic stability with prudent
will open up the possibility of higher education for
fiscal policy, maintaining the pace of economic
those poor students who mainly rely on education
reforms, boosting domestic demand, enhancing
loan. Current outstanding education loan is in the
expenditure in priority areas of farming and rural
tune of Rs. 50000 cores. HEFA is just a beginning at
development are main initiatives to change the
right time in right direction to promote the higher
lives of our countrymen.
education especially amongst the rural youth.
EDUCATION Indian students spend around Rs. 45,000
Literacy in India is key for socio-economic crore per year on foreign education mainly due
progress. In the field of education, quality and to lack of quality higher education in the country.
quantity is still a concern for the country. The current Recently in a study, one of Indias universities could
literacy rate of India is 74.04 per cent. Although make it to the list of 100 most prestigious global
we have shown an immense improvement in this universities. UN Human development report
field but the level is well below the world average 2015 has ranked India on 130th position among
of 84 per cent. Further, India currently has the 188 nations listed in the HD Index. Designing a
largest illiterate population in the world. It is regulatory architecture to transform 10 public
estimated that with current rate of progress, it and private institution to emerge as world class
would take until 2060 for India to achieve universal teaching & research institution is a welcome move.
literacy. Emphasis on research would benefit industry and
in turn, Indian economy.
Sarva Shiksha Abhiyan is meant to ensure
primary education for all the children below Digital Literacy Mission has been announced
the age of 14 years. But emphasis need to be with the vision to empower at least one person from
given on quality of education. Majority of the every household with digital literacy skills by 2020.
children are being educated in government run It will cover around 6 crore additional household
primary schools, where lack of basic facilities and within the 3 years. This is expected to touch the lives

of more than 25 crore individuals. Digitally smart JOB CREATION
youth in rural India would be able to fully participate
in the increasing global digital economy. Budget also Indian economy needs to generate 11.5 crore
plans to set up digital depository for school leaving non-farm jobs over the next decade to employ its
certificates, college degrees and academic awards. workforce. Various measures have been announced
This will help validate their authenticity, safe to generate the job opportunity both in skill and
storage and easy retrieval. Of the 16.8 crore rural unskilled area. 100 Model Career Centers are
households, as many as 12 crore households do not to be operational by the end of 2016-17. NIELIT
have a computer. Digital India mission envisages (National Institute of Electronic & Info Technology)
making the Indian citizens connected via Internet. is established as the first model career centre at
The government also aims to utilize the mission for Calicut on 9th Jun 2015. This scheme is purported
speedier transfer of government benefits to the to make available the skills sought by the local
people. Finance Minister in his budget speech also industries and at the same time be compatible
spoke of the plans to launch a unified e-portal for with the aspirations of youth. It will roll out the
agriculture. The portal will be launched on Dr B.R. industry oriented courses for employability of the
Ambedkars birth anniversary this year. local youth in rural India.
The Budget announced Online Courses to Much talked about Job creation scheme
establish an all India open university, which takes MGNREGS has been given utmost importance in
nominal fees or awards free courses to everyone. this budget. A sum of Rs 38500 crore has been
Furthermore, there can be an online repository allocated for MGNREGS. At least 5 lakh farm ponds
of videos of quality courses with an online self- and dug wells in rain fed areas and 10 lakh compost
assessment system. Entrepreneurship Education pits for production of organic manure will be taken
and Training will be provided in 2200 colleges, up by making productive use of the allocations
300 schools, and 500 Government ITIs and 50 under MGNREGA. Asset created by this scheme
Vocational Training Centers through Massive can do the wonders in promotion of agriculture by
Open Online Courses. This would certainly help making check-dams, Animal husbandry, forestry
meeting the demand of skilled manpower in Indian (by planting more trees) and other sectors such
industry. as cleanliness, transportation, education etc. The
inclusion of agricultural activities such as weeding,
SKILL DEVELOPMENT
irrigating, sowing and harvesting may be ensured
Skill development is main thrust of NDA for effectiveness and efficiency of the scheme.
government since it took office in May 2014.
Pradhan Mantri Krishi Sinchai Yojana has been
Unemployment has been a major concern. Country
another highlight of budget. 89 irrigation projects
has to channelized 1 crore unemployed youth
will be implemented, which will bring 28.5 lakh
in productive activities. Immense growth can be
hectares under irrigation. These schemes will bring
achieved through skill development. Rs 1804 crore
lots of employment to rural area and will boost the
has been allocated for this in the budget. With
the help of this fund, 1500 multi skilling training agricultural production to a new height.
institute will be set up in coming year to promote New scheme Rashtriya Gram Swaraj Abhiyan
skill development with the help of other ministries. is proposed with allocation of Rs 655 crore. Under
Budget proposed to further gear up the Pradhan this scheme, every district and every village will
Mantri Kaushal Vikas Yojna to impart skill to 1 locally produce clothes for children, provide textile
crore youth over next 3 years from current 24 lakh. machinery training in every village and promote
National Board for Skill Development indigenously manufactured clothes. Villagers can
Certification is also proposed to be set up in 2016 also sell these garments in the cities. By this scheme
17. This board will be set up in partnership with typically age old agrarian village economy will be
the industry and academics. Skill development has converted into small scale industrial economy. It
to be in congruence with industry to reap its full will provide job opportunity to rural youth as well
benefits. as enhance their purchasing power.

Another hallmark of this rural-focused budget provided to benefit 2.5 lakh SC/ST and women
is focus on Pradhan Mantri Gram Sadak Yojana. entrepreneurs. It will also set up a national hub in
Once there is connectivity, hitherto isolated hamlets the Ministry of Micro, Small and Medium Enterprises
become part of larger clusters. PMGSY will make it (MSME) to provide professional support to SC/ST
possible for producers of perishable produce such entrepreneurs. Budget also proposed the schemes
as milk, fish and vegetables to sell these to a wider for welfare and skill development for Minorities
base of consumers. Equally, it will also enable such as Multi-Sectoral Development Programme
companies to distribute their products through and USTAAD to be implemented effectively.
rural retail stores. This scheme will enhance the
employment opportunity of rural youth. There is 100 per cent village electrification to be
no gainsaying the fact that there exists a close link completed by 01 may 2018. Electricity is essential not
between rural connectivity and growth, be it in the only to ease the life style by lighting and household
area of trade, employment, education or healthcare. purposes, but it is also needed for mechanization of
In fact a lack of proper roads is a reflection of its many farming operations, such as threshing, milking
poor socio-economic indices. and hoisting grain for storage. In areas facing labor
shortages, this allows for greater productivity at
For Job creation in rural areas, Deen Dayal reduced cost. This will boost the setting up of small
Anyodaya Mission has been announced. Every scale industry in rural area in turn creating the job
block under drought and rural distress will be taken opportunity and boosting economy.
up as an intensive block. Intensive labor work will
be taken up. It will not only provide job opportunity National Land Record Modernization
to rural youth but also create assets to boost the Programme is another mission which will
rural economy. transform the face of rural India. It will develop
a modern, comprehensive and transparent land
Shyama Prasad Mukharjee Rurban Mission record management system in the country. It is
(SPMRM) will develop 300 rurban (Rural-Urban) really distressing to know that land records and
clusters with an outlay of Rs. 5142.08 crores over
land titling system is in most haywire state affecting
the next 3 years, across the country. In an ambitious
economic development at large. Budget envisages
bid to transform rural areas into an economically,
implementing this scheme effectively.
socially and physically sustainable spaces, these
clusters will incubate growth centers by providing Welfare programmes for animal husbandry
infrastructure amenities and market access for the have been announced in budget 2016. This will
farmers. benefit the animal owners and attract the youth
to dairy sector. Thus employment opportunities
SPMRM aims at development of rural growth
would open up not only for rural youth but also for
clusters which have latent potential for growth.
veterinary doctors and insurance staff. Pashudhan
Rurban Mission will develop a cluster of Smart
Villages and these clusters would be developed Sanjivani, an animal wellness programme and
by provisioning of economic activities, developing provision of Animal Health Cards (Nakul Swasthya
skills & local entrepreneurship and providing Patra) are innovative steps which would bring a
infrastructure amenities. The scheme, aiming at paradigm shift in the dairy sector. It would help
catalyzing overall regional growth, would thus stablise the farmers income, who often face
simultaneously benefit the rural as well as urban vagaries of mother nature in the form of floods or
areas, by achieving twin objectives of strengthening draughts.
rural areas and de burdening the urban space, Pradhan Mantri Fasal Bima Yojana is another
hence leading to balanced regional development flagship programe given utmost importance in
and growth of the country. budget. With budget allocation of Rs 5,500 crore,
National Scheduled Caste and Scheduled it is aimed at providing crop insurance cover to at
Tribe Hub will be set up in partnership with industry least half of the countrys 1.4 crore farmers by 2019.
associations for job creation to provide support It will provide insurance coverage and financial
to SC/ST entrepreneurs. Rs.500 crore has been support to the farmers in the event of failure of any

of the notified crop as a result of natural calamities, manufacturing from needles to spacecraft. Our
pests & diseases. It will also encourage farmers to satellites are in space and our own indigenous
adopt innovative and modern agricultural practices rockets are soaring high in the sky with state of art
to increase the agricultural production technologies. But this industrial progress increases
unemployment due to elimination of labour
Apart from many other initiatives budget
centric works, causing anger, angst and frustration
proposes to encourage cold storage facilities in
amongst the youths. Journey from job seeker to
the farm sector. Budget exempted service tax on all
job creator has to be travelled. Skill India program
facilities provided by thestate-run National Centre
has to train millions of youths in various vocational
for Cold Chain Development effectively from April
and technical courses. India is perceived to be the
01, 2016. India, the worlds largest producer of
largest market for foreign investors. Over 1.3 billion
milk and the second-largest producer of fruits and
population is devoured to digest all the consumer
vegetables, is also one of the biggest food wasters
goods and products. Rising living standards and
in the world. Establishing cold storage chain will
improvement in infrastructure need tremendous
reduce the considerable wastage and generate
machinery, products, services and skill. This is the
employment opportunities in constructing and
time to change the perception from being mere a
maintaining this chain.
market for other economies to be amanufacturing
Budget has pumped huge amount of money hub.
in rural economy. Allocation of Rs 35,984 crore
From consumer products to food processing,
for agriculture and farmers welfare, Rs 87,765
we can create jobs. Cheap labour, coupled with
for rural sector, 2.87 lakh crore as Grant in Aid to
investment and technology can do wonders. It will
Gram Panchayats and municipalities . Rs 2.31 lakh
not only fulfill our domestic requirements but can
crore for infrastructure sector, Rs 1,51,581 crore for
explore the foreign markets in African and Asian
social sector including education and health care
subcontinent also.
are some initiatives which will act as growth engine
to rural economy. A cess of 0.5 per cent, named Announcing education, skill development
Krishi Kalyan Cess, has been levied on all taxable and job creation as fourth pillar of the budget,
services, w.e.f. 01 June 2016. Proceeds of the cess government rightly laid highest emphasis on rural
would be exclusively used for financing initiatives economy. As 70 per cent India lives in rural areas,
relating to improvement of agriculture and welfare real development of nation has to start with the
of farmers. This would certainly give a boost to rural development of agriculture and rural sector. Budget
job generation and check migration to cities. 2016-17 has provided enough for this sector, now
monitoring & implementation of all these schemes
Indias growth story is entirely contrary to the
at grass root level is important. Budget has also
pattern adopted by other developing countries.Japan
proposed to appoint a committee at district level
has focused on its small scale products and entered
under the chairmanship of senior most Member of
in the club of developed country. Singapore, Hong
Parliament from each district.
Kong, Malaysia, south Korea followed the suits and
become giant economic powers. Of late, China also India aspires to enter the club of developed
started focusing on its small scale industries and countries sooner than later and pull the millions
presence of Chinese goods like- toys, electrical and out of poverty. Country is in the mode of startup
electronic items and home appliances has made mania. Government, industries and youth of this
solid dents in every market of the world. China great nation should gear up in unison to make
almost outsmarts everyone in this field by solid India a manufacturing giant. We are already late
policies of promotion of its small scale industries. and we cannot afford to miss this opportunity
Thus Make in India programme is an effort to keep now. Budget 2016 has provided this much needed
pace with other economies, making every one an boost.
entrepreneur.
(Author, an Indian Railway Personnel Services
Over the period of 68 years after the (IRPS) Officer, is Principal of Oak Grove School,
independence, India has progressed a lot. We are Mussoorie. Email-jppandeyirps@gmail.com)

Budget 2016-17
Bringing Health To The Underprivileged
Abhirup Bhunia
Out of pocket payments (OPP) as a share of total health spending is a major indicator of the countrys public health machinery.....The
problem is exacerbated, in fact egged on, by the lack of a health insurance scheme with universal coverage.
T
he Union Budget of 2016 represents a decisive focus by 2020, as per the Draft National Health Policy. The
on the social sector aimed at advancing human Indian Medical Association wants the share to go up
development. The budget comes in the backdrop to 5 per cent without further delay. Indias per capita
of a challenging economic scenario. This article will
health expenditure is the lowest even amongst BRICS
analyse the Budget specifically with respect to the much-
important health sector. A little bit of context setting is
countries. In this years budget about 1.62 per cent
necessary before going about the task of analysing this of the total budgetary expenditure is set aside for
years Budget. the health sector.
It is globally accepted that the health and well- Budget outlays for Health and Family Welfare in
being of people is a crucial determinant of sustainable last three financial years. (in Rs. Crores)
development. India is placed at a lowly 95th rank in
2014-15 2014-15 2014-15 2015-16 2015-16 2016-17
the Nutrition and Basic Medical Care segment of BE RE (Actuals) BE RE BE
the Social Progress Index and 120th in the Health
Outlay 37965 31274 30626 31050 32819 37061
and Wellness segment. This puts India even behind on
South Asian peers such as Bangladesh and its BRICS health
partners. Indicators such as life expectancy, pre-
mature deaths from non-communicable diseases, Source: Budget, 2016
maternal/child mortality rate, deaths from
infectious diseases, etc. are taken into account. The The bright spots in the budget from the
ranking is tabulated below in order to contextualise healthcare perspective were:
Indias performance in public health. a) The focus on health insurance which is going to
Indias comparative performance in basic address Indias Out-of-Pocket outlay problem
healthcare services (Ranking among 161 countries) b) Continued focus on Jan Ausadhi Yojana, which
Country Nutrition and Health and seeks to make healthcare inclusive and
Basic Medical wellness c) The National Dialysis Service Program (NDSP),
Care which recognises Indias massive renal kidney
India 95 120 diseases problem.
Bangladesh 94 30
Out of pocket payments (OPP) as a share of total
Sri Lanka 91 87
health spending is a major indicator of the countrys
Brazil 61 34 public health machinery. It refers to direct cash
South Africa 89 114 outlays by individuals forhealthcare. OPP in India is
China 74 103 70 per cent compared to something around 12 per
Russia 45 131 cent in US. The problem is exacerbated, in fact egged
on, by the lack of a health insurance scheme with
Source: Social Progress Imperative, 2015 universal coverage.
Indias current healthcare spending is about 1.3 Scattered efforts include the Rashtriya Swasthya
per cent of its GDP, compared to 3 per cent in China, Bima Yojana (recently brought under the Ministry of
8.3 per cent in the US and 8 per cent in EU. It aims Health and Family Welfare and renamed Rashtriya
to increase health spending to 2.5 per cent of GDP Swasthya Suraksha Yojana) which provides cashless
health insurance cover of up to Rs. 30,000 per annum The announcement of a National Dialysis
to BPL families employed in 11 occupational groups Services Programme (NDSP) has come at a time
in the unorganized sector and MGNREGA workers. when a pan India study has found that more than
Of the target of 7 crore people (set out in the 2012- 72 per cent of dialysis patients do not undergo
17 five year plan), about 3.6 crore families have prescribed treatments, a majority of them due
been enrolled. To counter the dire state of health to issues of non-affordability. The growth of non-
insurance in the country the RSSY has been accorded communicable diseases in India is also a problem that
a budget of Rs. 1500 crores, which is a 152 per cent the NDSP has the potential of addressing. Although,
hike from the current FY expenditure of 595 crores. the programme is slated to be made available in
The insurance cover has been fixed at Rs. 1 lakh, with all district hospitals, the public-private partnership
additional cover of Rs. 30,000 for the elderly. These (PPP) model is something whose performance is yet
are positive signs given that only about a quarter to be seen, and difficult to predict. An estimated 10.1
of Indias population is insured, although estimates crore people in India will be affected by diabetes by
vary (mostly putting it lower than that). Already, the 2030, a major cause of kidney failure. About 2.2
RSBY has engendered positive health outcomes in lakh End Stage Renal Disease patients emerge every
some states. Implementation is going to be of crucial year in India causing an additional demand for 3.4
importance. crore dialysis sessions. That is a demand that 4,950
The Pradhan Mantri Swasthya Suraksha Yojana dialysis centres can hardly meet. The NDSP has been
(PMSSY), for which this years allocation went long overdue, although it is arguable that the NDSP
up almost two fold, aims to address the regional is curative, rather than preventive. Something on
imbalances in the availability of affordable healthcare the lines of Mexicos Soda and Sugar Tax (aimed at
facilities. The focus on under-served States includes curbing obesity and diabetes) could have been the
the setting up of six AIIMS-like institutions in Bhopal, answer to Indias man-made diabetes epidemic.
Bhubaneswar, Jodhpur, Patna, Raipur and Rishikesh Experts largely agree that behavioural changes are
and upgradation of 70 existing Government medical a better answer than curative policy thrusts. India
colleges in PMSSY phases 1, 2, 3 and 4. already deploys this dis-incentivization method to
curb smoking, although the effectiveness of such
A plan to open 3,000 Jan Aushadhi Stores (JAS) taxation is not scientifically proven yet.
in 2016-17, offering affordable generic medicines,
was also announced. As on 31.10.2014, India has
170 such stores in 15 states (of which only 99 were
functional). The expansion plan is good news for
India, particularly because about 80per cent of
health expenditure in rural India is attributable to
cost of medicines. Likewise, 80per cent and 60per
cent of all out-patient and hospitalized patients
are exposed to the expensive private market for
purchase of medicines. It must be noted that the
plan in itself is not going to achieve much tangible
outcomes, if some outstanding challenges are not
addressed. For instance, most doctors (including
public sector doctors) do not prescribe JAS/generic
medicines leading to low demand for these generics. Suggestions
There are reports of closure of about 50 such JAS due
to low business volume generation. There is a need According to official data as on March 2014,
to launch advocacy measures to generate awareness there was a shortage of 6,700 public health centres
levels among the public as also to sensitize the and 2,350 community health centres (the backbones
doctors. This will ensure the poor and vulnerable of healthcare delivery in the country). The shortfall
are not exposed to shocks while making JAS a viable of Community Health Centres in terms of percentage
business opportunity. is as high as 91 per cent, 50 per cent and 41 per cent

in Bihar, Sikkim and Karnataka respectively. The Currently, India has only 9 hospital-beds per
shortfall of Primary Health Centres were 66 per cent, 10,000 population compared 41 in China and 91 in
58 per cent and 42 per cent Jharkhand, West Bengal Russia, not to speak of the developed countries. One
and Madhya Pradesh, respectively. Despite this can hope the PMSSY can at least begin to surmount
problematic context, less than 0.25 per cent of total some of these infrastructural problems.
infrastructure investments in India is in the health
Given that about a third of the population
sector, analysis of government data shows. So more is already living in urban areas (estimated to rise
attention is needed in this direction. to 47 per cent by 2030), and that the incidence
The district Primary Health Centres (PHCs) in among the urban population of non-communicable
India are currently facing a crippling human resource diseases such as heart disease, asthma, diabetes,
crunch too, with a shortage of more than 3,000 hypertension, mental health is much higher than in
doctors. Focus should be on the plans to fill up these rural areas, National Urban Health Mission (NUHM)
vacant positions, or to build new infrastructure to should also have been given a bigger focus in this
fill the aforementioned PHC/CHC shortfall. Likewise, years Budget.
the state of government hospitals/healthcare units
Conclusion
in the country are dilapidated to say the least, thus
pushing patients to private healthcare facilities, Given the fiscal constraints, under which the
where the disproportionately high treatment costs Budget 2016-17 was presented, health sector in
often push households back into poverty, financial India has seen some bold initiatives. If implemented
insolvency or worse. While the insurance scheme, properly, these initiatives would certainly help
itself, if duly implemented and scaled up, can the underprivileged masses better access to
address this particular problem (through cashless healthcare.
treatments at any facility), it will only do so partly, (author is a development consultant, Email:
and a lot is still to be done. abhirup.b1@gmail.com)

Budget 2016-17
Building roads for Rural Prosperity
Manoj Varghese
In the absence of road connectivity, schools had local children but were beyond the reach of the appointed teachers.....Ambulances
could not make it to the ailing and needy...
A
ll roads lead to Rome is an old saying. On Welfare; Rural Sector; Social Sector including
the same lines, the Government of India is Healthcare; Education, Skills and Job Creation;
committed to connect the remotest village Infrastructure and Investment; Financial Sector
in the country with roads leading to Delhi. For this Reforms; Governance and Ease of Doing Business;
to happen, the Government has not left any stone Fiscal Discipline and Tax Reforms.
unturned and has allocated a budget of Rs 19,000
The Governments perspective regarding the
crore for the coming year 2016-17. Together with
developmental priorities has been fast changing
States share, about Rs 27,000 crore in total, will be
in the recent past. Some of the states like
spent in the forthcoming year on Pradhan Mantri
Chhattisgarh, Rajasthan, Madhya Pradesh, Bihar
Gram Sadak Yojana (PMGSY).
and Odisha witnessed the change of power owing
Rural road connectivity is a key component to the dilapidated condition of the roads. These
of rural development and a holistic approach State Governments, looking at the political gains
of promoting access to economic and social after coming to power, gave no second thoughts
services and thereby, generating increased and took up the construction of roads on a priority
agricultural incomes and productive employment from the state capital to the district headquarters
opportunities. The Yojana aims to advance the
completion target of the programme from 2021
to 2019 and connect the remaining 65,000 eligible
habitations by constructing 2.23 lakh kms of
roads. Accordingly, the pace of construction which
is currently 100 kms per day, as compared to
the average of 73.5 kms during 2011-14, will be
substantially stepped up. The allocations in 2012-
13 and 2013-14 were Rs 8,885 crore and Rs 9,805
crore respectively.
The Government is all set to keep that last
straw on the Camels back before it finally takes and in turn to the villages. In the process,
off its Make in India campaign through its construction of roads quality was ensured at all
road connectivity and cumulative effect of the levels and ample security was provided to the
development activities in the rural sector. PMGSY agencies engaged. This facility enabled the public
is a huge central investment in the state sector to connect with the global world in many ways and
as part of a poverty reduction strategy. This gave a boost to the image of the state governments,
investment, essentially the last mile connectivity, some retaining the power for the second and third
is likely to boost up the associated campaigns like term accordingly. Highest road construction has
Make in India, Swatch Bharat Mission, Education been recorded in Madhya Pradesh (63,548 km),
to All among others. Presenting the Budget, the followed by Rajasthan (58,462 km), Uttar Pradesh
Finance Minister said the agenda for the next year (45,905 km), Bihar (35,510 km) and Odisha (35,019
will be to Transform India in this direction. He km). Bihar alone had 34,637 habitations originally
highlighted that the budget proposals are built eligible under PMGSY. Of these, 15,048 now have
on this transformative agenda with nine distinct road connectivity, with work on another 12,136
pillars which include: Agriculture and Farmers habitations receiving clearances.

In the absence of road connectivity, schools successive road connectivity projects namely
had local children but were beyond the reach of Golden Quadrilateral and North-South and East-
the appointed teachers, at Primary Health Centers West Corridor brought much accolades for the
(PHC), patients kept waiting for the arrival of ruling NDA Government and was carried forward
the doctors and medical staff. Ambulances could by the successive governments.
not make it to the ailing and needy, farmers had
Table: PMGSY: Achievement and Spending
bumper crop production but failed to reach the
demanding in other parts of the country, raw Year Road length Rupees
materials could not find its way to the manpower Constructed Expenditure (in
and so on and on . Whereas, the road connectivity (in Km) crores)
enabled the duty staff and the raw material to 2004-05 15,464 3077.45
reach the villages from other villages/districts and 2005-06 22,891 4100.39
in return the manpower and the goods could reach 2006-07 30,710 7304.27
the needy. Small scale industries mushroomed in 2007-08 41,300 10,618.69
the villages and farmers started getting a good 2008-09 52,405 15,161.99
price for their commodities. The Governments
2009-10 60,117 18,832.92
provision of employment opportunities through
2010-11 45,109 14,910.98
MGNREGA, food security to the labourers, various
2011-12 30,995 10,946.41
subsidies and insurances to the farmers, support
to the irrigation lands, transportation means for 2012-13 24,161 8386.75
the crops to reach the Mandis, boosted the morale 2013-14 25,313 13,095.29
of the local villagers. 2014-15 36,337 16,538.05
2015-16 37,000 19,200.00
Some of the lacunae in the construction
and functioning of rural roads observed include
variation due to the climatic conditions, not as per
the guidelines of NRRDA (National Rural Roads
Development Agency), manipulation in the survey
and investigation, disparity in the soil quality (places
with black soil needs 1-2 feet base whereas with
muram or soild soil only 4 inch base may be required),
compromise in quality of bitumen, field testing
lacking (as the sample material is sent to labs), etc.
Procurement of land from the individuals for the
The PMGSY is a nationwide plan in India to construction of roads is an area where conflict of
provide good all-weather road connectivity to interest prevails and a lot of time and energy is spent
unconnected rural habitation with a minimum to overcome it.
population of 500 in the plains and 250-plus
in hill states, tribal districts and desert areas. A special emphasis has been laid on the
This Centrally Sponsored Scheme, under the Infrastructure and Investment in the present Budget.
authority of the Ministry of Rural Development An allocation of Rs. 55,000 crore for Roads and
was introduced on December 25, 2000 by the Highways has been proposed which will be further
then Prime Minister of India Shri Atal Bihari topped up by additional Rs. 15,000 crore to be
Vajpayee on his birthday. Earlier, in 1998 the NDA raised by NHAI through bonds. The total investment
government had launched a massive National in the road sector including PMGSY allocation
Highways Development Project for building a would be 97,000 crore during 2016-17. The capital
four/six-lane expressway network connecting the expenditure of the Railways, the total outlay on
four metros (Delhi, Mumbai, Chennai and Kolkata) roads and railways will be Rs. 2,18,000 crore. Other
along with four corners of the country (Srinagar, than PMGSY, the road related agencies and schemes
Porbandar, Kanyakumari and Silchar). These two in India are:

National Highways Authority of India (NHAI) core network; scrutiny of project proposals and
is an autonomous agency of the Ministry of monitoring.
Road Transport and Highways, responsible for
Project Proposals: Once the proposal is
development, maintenance, management and
approved by the District Panchayat, it is forwarded
operation of a network of over 70,000km of National
through the PIU to the State Rural Roads Development
Highways in India. The NHAI is also responsible of
Agency (SRRDA). The PIU prepares the details of
the toll collection on several highways. In the states,
proposals forwarded by the Members of Parliament,
it operates through the respective National Highway
and action taken thereonand send it along with the
State Wings.
proposals. The SRRDA vets the proposals to ensure
State Public Works Department (PWD) that they are in accordance with the guidelines
constructs and maintains the roads connecting district and place them before the State-level Standing
to district or tehsil/villages. The State Highways and Committee along with the MPs statements. PIU
the roads within the state are looked after by the also holds a consultation with the local community
PWD. The department is funded and governed by through the mechanism of the Gram Panchayat in
the respective State Governments. order to determine the most suitable alignment, sort
out issues of land availability, moderate any adverse
Mukhya Mantri Gramin Sadak Yojna (MMGSY) social and environmental impact and elicit necessary
has been set up in order to provide road connectivity community participation in the programme.
to maximum/each village of a state within the range
of population between 500 and 250 which are not Execution of Works: The relevant projects is
covered under the PMGSY. Mahatma Gandhi National executed by the PIUs and completed within a period
Rural Employment Guarantee Scheme (MGNREGS), of nine months from the date of issue of the Work
Backward Region Grant Fund (BRGF), State Plan Head Order. An important principle of the PMGSY is the
are the three functional components for running assured availability of funds, so as to facilitate timely
the scheme of MMGSY. In Madhya Pradesh, a total completion of road works. It is the responsibility of
19,386 km length of gravel roads is scheduled to be the executing agencies to ensure timely payments to
constructed under MMGSY. the contractors, subject to satisfactory execution of
work.
Gram Panchayats are responsible for the
construction and maintenance of roads within the Maintenance of Rural Roads: In the context of
village for local connectivity. a farm to market connectivity, proper maintenance
is essential if risks of long term investments, on-
Key components of PMGSY farm as well as off-farm, are to be taken by the rural
entrepreneur. All PMGSY roads are covered by 5-year
Programme Implementation Units (PIUs): The
maintenance contracts and entered into along with
Programme is coordinated and implemented through
the construction contract, with the same contractor,
a dedicated Programme Implementation Unit (PIU)
as per the Standard Bidding Document. Maintenance
at the district level. It comprises of competent
funds to service the contract is budgeted by the State
technical personnel like engineers, draftsman etc
Government and placed at the disposal of the SRRDA
from the Irrigation, Rural Development and PWD of
in a separate Maintenance Account.
the state government and professional consultants.
The PMGSY takes care of only the administrative Rural connectivity is not an end in itself. It
and travel expenses of the staff and the cost of is a means of transformation, and in particular
construction of roads. transforming India. It is expected that the
connectivity will improve indicators of education,
National Rural Roads Development Agency
health, rural incomes etc. provided as a follow up,
(NRRDA): The Ministry of Rural Development has set and in consultation with the local Panchayati Raj
up the National Rural Roads Development Agency Institutions, convergence is achieved with other
(NRRDA) to provide operational and management ongoing programmes in these sectors.
support to the PMGSY. The NRRDA provides support
on designs and specifications and cost norms; (author is a senior journalist based in Delhi.
technical agencies; District Rural Roads Plans and Email: manojmediacenter@yahoo.co.uk)

Budget 2016-17
DAWN OF DIGITAL EMPOWERMENT
Osama Manzar, Rajat Kumar, Udita Chaturvedi
.....digital tools can help achieve transparency, efficiency and accountability but for that to happen, it requires much more than
just building a large digital infrastructure.
F
or the last seven decades, India has been topics of taxation, finance, health, education
struggling in making entitlements, citizen etc., what drew particular attention was the
services and individual rights reach the public, introduction/revamping of schemes focused
especially in remote and rural parts of India, in an on leveraging information communication
efficient and effective manner. Fortunately, there are technologies (ICTs) towards development in
now digital tools and ICT capacities that are being various sectors, particularly with rural beneficiaries
employed in large parts of the world for making in mind.
these and other similar government-to-citizen
The key sectors where ICT and digital tools
services more efficient and effective. However, India
for rural development made their presence felt
still has a long way to use these tools successfully
strongly was in the areas of social development,
and innovatively.
education, entrepreneurship and agriculture.
About 70-80 per cent of the country is still not Social Development
connected digitally. According to a recent study, 72
per cent of Indian women do not have access to Direct Benefit Transfers (DBT), Aadhaar, LPG
mobile phones. Forget WhatsApp and Facebook, and MGNREGA
they dont even have the basic calling facility. Its It is proposed that DBTs will be extended on
actually only 40 per cent of Indias population that a pilot basis for subsidies on fertilisers in certain
is using one billion SIM cards. So even if we provide districts. DBTs on LPG have already been linked
a lot of solutions, which have an ingredient of digital to beneficiaries Aadhaar cards. It is expected
tools, were not really certain if all the people, or that DBTs on fertilisers will also be linked to the
even a majority of people, can avail the services, Aadhaar system.
entitlements and benefits.
The government has also proposed
Having said that, digital tools can help achieve introducing legal backing to Aadhaar card in the
transparency, efficiency and accountability but for Budget speech. We hope the Aadhaar linked DBTs
that to happen, it requires much more than just to reach beneficiaries directly, it would reduce the
building a large digital infrastructure. For example, red-tape and time taken to deliver the service.
buying computers for schools isnt enough, the
government must ensure that the same are being The government has stated that use of
used in an effective manner. For this, training of Aadhaar could save the taxpayer Rs. 20,000 crore
students isnt enough, training of teachers is more by the way of effective targeting of the subsidies.
important. Government has tried to address the privacy and
data protection concerns raised by civil society.
With these thoughts in mind, let us now look at
Also the government has made it clear that the
the latest budget and see if the government has got
possession of an Aadhaar number/card is not the
the right approach or not.
proof of citizenship.
The Union Budget 2016-17 was presented in
Additionally, the government has also planned
Parliament by the Finance Minister Mr. Arun Jaitley
to provide LPG connections on the name of women
on 29, 2016. It was this governments third Budget
in the family, as opposed to the current trend of male
presentation.
members. We view this as a progressive move that
While the Budget touched upon the usual would also increase the penetration of the Aadhaar

card among women, leading to greater gender Education and Entrepreneurship
parity. National Digital Literacy Mission
Finally, the Budget has provided the highest The National Digital Literacy Mission (NDLM)
ever sum of Rs. 38,500 crore for MGNREGA. was created with the aim to make impart digital
Payments under the MGNREGA have already literacy and IT training to 52.5 lakh individuals
been linked to the Aadhaar number. It is our hope across the country. The NDLM was implemented
that the proposed legal backing to the Aadhaar
with the aid of industry, civil society and
will serve to increase the rigour in validation of
educational partners.
payments and reduce the chances of any potential
corruption/duplication in the payment process. This year, the NDLM has received a fresh lease
of life with the mandate to expand to cover six
Automation in fair price shops (FPS) crore additional households in rural India over the
To ensure the benefits of minimum support next three years, directly and indirectly supporting
price reach farmers and to ensure reduction in several other digital initiatives proposed by the
pilfering in the stocks in the public distribution government.
system, the government has proposed the
The National Digital Literacy Mission is one of
automation of 3 lakh of the 5.35 lakh fair price
the integral parts of prime ministers Digital India
shops (FPS) in the country. This automation
will ensure that incoming and outgoing stock is mission. However, six crore should not just be a
properly weighed and catalogued. It is our hope target figure that has to be achieved by picking
that this will make it easier for consumers to make any random villager for digital literacy training,
purchases at these shops. Additionally, we hope instead it should be institutionalised. There are
that these fair price shops will also embrace and 30 lakh elected member of the panchayat, 10
encourage digital payment methods that would lakh of them are women. Why not target all
promote mobile wallets. of them? There are 80 lakh teachers in India,
why not include all of them? There are 20 lakh
Under PDS, every BPL family is entitled for 35 aanganwadis and 2.6 crore MSMEs, why not
kg of rice/wheat per month; and the APL cardholder ensure that they are all made digitally literate?
for 15 kg. However, the research shows,- The Why not provide digital training to frontline health
food grains supplied by the ration shops are not workers and self-help group members? Surely, if
enough to meet the consumption needs of the digital literacy is targeted through an institutional
poor or are of inferior quality. The average level of approach, the impact would be much higher than
consumption of PDS grains in India is only 1kg per
when random people in the village are selected
person per month.
and enrolled for digital literacy. Additionally, it
So how will automation tackle these issues? will also be easier to track the beneficiaries and
Will it ensure that every sack of grains and every understand the impact of the project.
canter of kerosene oil is digitally marked to allow
Another question that comes to our mind is
its movement to be tracked in real time till it
whether the money being distributed for all NDLM
reaches its destination? Will the FPS automation
mean that only eligible people would get ration? centres includes the cost of support infrastructure
Can the automation mean that there would be such as generators keeping in mind the lack of
no pilferage? Can we ensure that each and every power supply that plagues most of rural and remote
ration shop would be geographically marked on India and if it does, is the money being utilised
the map and the distribution process recorded on for the same purpose or is there any pilferage.
camera and made available to authorities to view There also needs to be a process to ensure that
in real time? Besides finding answers to these the study material being provided to students
questions, there are several other significant through NDLM is of a quality that they are able
challenges that the government would face in the to imbibe easily without compromising on the
process of implementation of automation at every quantity of information they should be taking in.
FPS. The NDLM centres should also provide additional

vocational training for youth to open more job and As of time of publication, there are 18.42
entrepreneurial opportunities. lakh individuals enrolled in the PMKVY of which
just 40,327 are enrolled in the IT/ITeS sector
Digital Depository of School Certificates and 55,289 are in the telecom sector. Together,
The government has proposed the creation of they constitute roughly 4.5 per cent of the total
a digital depository for school leaving certificates, number of individuals enrolled. The government
college degrees, mark sheets, etc. This will help Indian has also proposed the creation of 1,500 multi-skill
students to access their academic documents in case training institutes across the country which should
they have lost their originals. This is an academically- increase the number of total enrolled individuals
under the PMKVY. There has been an allocation of
focused project similar to the DigiLocker project
Rs. 1,700 crore for this endeavour.
initiated by this government. The DigiLocker already
serves to save government documents like birth The total number of enrolled individuals is
certificates, passports, PAN cards, etc. This would a heart-warming statistic; however, to promote
save time and money of thousands of students, who employment and entrepreneurship in the digital
run from pillar to post if their documents are lost. space, the percentage of individuals in the IT/ITeS
and telecom sectors needs to increase.
A cause of concern that arises with the launch
of this project is the potential imbalance in benefits Finally, the government has also pledged to
between urban and rural students. Also, does provide entrepreneurship education and training
the idea of creating a digital depository of school in a total of 3,050 institutions (2,200 colleges, 300
certificates only applies to the CBSE board or does it schools, 500 government ITIs and 50 vocational
also include government recognised ICSE board and training centres) through Massive Open Online
the respective state boards? The government should Courses (MOOCs). These MOOCs, if delivered
commit additional resources to fulfil its commitments through the public access points connected to the
under the BharatNet project and provide optical BharatNet, can have an almost exponential reach
fibre connectivity to all 2.5 lakh gram panchayats. across the country, in the most remote villages.
Institutions like IGNOU and Khan Academy are
These panchayats should be further empowered
already ahead, and have been providing MOOC
to provide connectivity to public access points in
content for a while. Media Lab Asia and even
the area. Coupled with the expansion in the scope
corporations have released digital literacy courses,
of the NDLM, this would serve as a force multiplier
which are available in the public domain for free-
and would empower rural students to leverage the
of-cost consumption. However, the question that
benefits of the digital depository. arises is - if building and scaling up skill enough?
Skill India Mission, Pradhan Mantri Kaushal What is the focus on quantity or quality of
Vikas Yojana (PMKVY) and Entrepreneurship education? Wont the motivation among students
Education and Training to enrol for skill development increase if an almost
equal number of job opportunities are created for
The Skill India Mission and its sub-scheme, the them?
PMKVY, work together and aim to encourage skill
development for youth and provide a monetary Agriculture
benefit for trainees who are successfully trained Land Record Modernisation Scheme
and certified by affiliated training providers. It is Titles on land have frequently been a bone
defined as an outcome-based skill training scheme of contention across the country. It leads to
that rewards and aims to enable and mobilise a large disputes among friends, families and neighbours.
number of Indian youth to take up skill training and These disputes are usually caused by inaccurate
become employable and earn their livelihood. The records maintained by the patwari. The use of
monetary reward for successful trainees, that range geographical information systems (GIS) for the
from Rs. 5,000 to Rs. 12,500, is disbursed to the measurement of land holdings have been on the
trainees Aadhaar linked bank account. rise in the past few years. However, as the results

of these GIS-created land survey records may The unified platform will serve to bridge that gap
not be consolidated with the pre-existing land towards fair remuneration for farmers. We are
records, it may have led to continuing disputes. pleased that the government is cognizant about
the benefits of providing accurate and timely
The government has pledged to revamp the
information to citizens but its efficiency is yet to
National Land Record Modernisation Programme
be proved.
under the Digital India Initiative and has provided
Rs. 150 crore for this endeavour. While the citizen Conclusion
does not interface directly with the technology
in this case, they do benefit greatly from this While this Budget has not treated technology
modernisation programme in terms of clear in isolation with other schemes but tried to
understanding of their titles and land holdings. integrate the effective use of ICT across all
important sectors, with the aim of a Digital India
The Bhoomi project of Karnataka has been in mind, it is yet to be seen how all these plans will
the first-of-its-kind project for online delivery be implemented on ground. The mere installation
and management of land records, which aims at of computers and connectivity is not the solution,
providing transparency. However, nobody has the government must ensure that these facilities
heard about Bhoomi in the last decade. Maybe are utilised in an optimum manner by the people
it would be a good idea to study the success and as well.
failure of this project before the Centre rolls out
For example, out of the 2,50,000 panchayats,
the Land Record Modernisation Scheme at a
more than 50,000 have been provided computers
national level.
and connectivity, but these facilities are almost
Unified Agriculture e-Marketing Platform never used. If automation facilities are being
provided at every fair price shop (FPS), it is
The government has proposed amendments important to give training to FPS keepers.
to the state Agricultural Produce Marketing
Committee Acts (APMC) and the introduction of Allocating a budget to impart digital literacy
a Unified Agriculture e-Marketing Platform. The to six crore additional individuals is a welcome
amendments to the APMC Acts will empower step, but it is also important to provide quality
state governments to use this electronic platform. training rather than simply providing some
As per the Budget announcement, 12 states have sort of a forced training. This means training of
accepted the amendments to their APMC acts. trainers is as important as the training of trainees.
Thousands of our millions of schools have been
The platform aims to connect up to 250 provided with computer labs but, more often than
agri mandis by September 2016, and up to 585 not, teachers for various reasons never access
mandis by March 2018. State governments will those labs. Similarly, there are millions of pages of
be urged to launch the e-market platform to unify government orders, including details of hundreds
mandis in the state, thereby allowing farmers to and thousands of citizen entitlements, which have
sell their produce in any mandi of their choice. been scanned and converted into PDF files to be
This unified platform will empower farmers with uploaded on several ministry websites these
up-to-date information about the appropriate files do not solve any purpose to any targeted
selling price for their produce, thereby ensuring audience as they are dumb papers, just stored
fair remunerative prices and serving to double online. Therefore, while digital interventions have
farmers income over five years. Will it result massive strength in improving governance, the
in buying lakhs of PoS (point of sales) devices mere installation or introduction of technology
that will never be used for lack of training to is not enough. Right approach on the part of
use them? Or will it result in lakhs being spent government, however, is what can make all the
in buying computer systems that will be left to differences.
catch dust?
(authors are with Digital Empowerment
Information asymmetry is one of the key Foundation. Email: rajat.kumar@defindia.net,
drivers of under-development in the country. osamam@gmail.com)

Budget 2016-17
A Boost To Organic Farming
Dr. Harender Raj Gautam, Dr. Rajesh Kaushal
In India, the traditional farming advocates for the use of farm generated bio-resources. Today, there is need to adopt such
measures to get rid from the toxicity of fertilizers and chemical pesticides.
V
iability of agriculture and its accelerated be no liability on the farmers for expenditure
growth is vital for employment generation on certification. Under this scheme farmer will
and food security of the country. Reviving be provided Rs. 20,000 per acre in three years
the farm sector is a major challenge for the for seed to harvesting of crops and to transport
Central Government as it still accounts for about produce to the market.
54.6 per cent of total employment (Census 2011).
Our country is rich in all bio-resources required
The sector needs increased budgetary support as
to promote organic farming. Hence it would be
there has been a decline in the absolute number
promoted by using traditional resources and the
of cultivators, which is unprecedented, from 12.73
organic products will be linked with the market. It
crore to 11.87 crore (Census 2011). Further, the
will increase domestic production and certification
present trends in the farm sector are also not
of organic produce by involving farmers.
encouraging as uncertain monsoon rains continue
to cripple the agriculture growth which was a In 2016-17, allocation under PKVY has been
dismal 1.1 per cent in 2015-16. increased to Rs.412 crore. In addition, other
continuing programmes and schemes of the Central
Under these circumstances, Union Budget
Government like National Mission for Sustainable
2016-17 rightly focused its attention on agriculture
Agriculture (NMSA)/ Paramapragat Krishi Vikas
and rural sector. A number of new initiatives were
Yojana (PKVY), Rashtriya Krishi Vikas Yojana
announced and budgetary allocations for rural
development and farmers welfare were hiked
substantially. Budget also gave a boost to organic
farming through various schemes and initiatives.
In this article, we would focus on this organic part
of the Budget 2016-17.
Promotion of Traditional Farming to Rejuvenate

Agriculture
Paramparagat Krishi Vikas Yojna (PKVY) or
programme for promotion of traditional farming
is important to rejuvenate Indian agriculture. This
scheme was started in 2015-16 with an allocation (RKVY), Mission for Integrated Development of
of Rs.300 crore. This scheme will provide the Horticulture (MIDH), National Mission on Oilseeds
required impetus to the promotion of organic & Oil Palm (NMOOP), Network Project on Organic
farming. This is a cluster based programme to Farming of ICAR are also helping in promotion of
encourage groups of farmers to take up organic organic farming. The umbrella programmes under
farming. Under PKVY, fifty or more farmers will Mahatma Gandhi National Rural Employment
form a cluster having 50 acre land to take up Guarantee Act (MGNREGA), have also been
the organic farming. Target in next three years expanded to cover various other programmes
to have 10,000 clusters formed, covering 5.0 which will help to increase the agriculture
lakh acre area under organic farming. There will production. Under MNREGA, 5 lakh farm ponds

and dug wells in rain fed areas to be taken up. nematodes and also effective against more than
Further, there is planning for creation of 10 lakh 50 diseases.
compost pits for organic manure.
Growth of Organic Farming in India and the
In India, the traditional farming advocates Global Status
for the use of farm generated bio-resources. It
emphasizes the use of climate resilient local Organic farming is a holistic production
landraces of crop seeds. It advocates the use of management system which promotes and enhances
mixed cropping and good soil health. Nutrients agro-ecosystem health, including biodiversity,
for the crops were achieved from the farmyard biological cycles, and soil biological activity. Organic
manure and composts. In managing pests and agriculture is practiced in 172 countries around the
diseases in crops, the traditional soil solarisation, world and 4.37 crore hectares of agricultural land
use of botanical extracts, cow urine and wood is managed organically by some 23 lakh farmers.
ash were in use. Today, there is need to adopt The global sales of organic food and drink reached
such measures to get rid from the toxicity of 80 billion US dollars in 2014. Australia is the
fertilizers and chemical pesticides. There is country with the largest organic agricultural area
(1.72 crore hectares, with 97 per cent of that area
need to fine tune the traditional package and
used for grazing), followed by Argentina (31 lakh
practices of crop production with the available
hectares) and the United States of America (22 lakh
knowledge inputs about the potentialities of the
hectares). The United States is the leading market,
bio-resources. The traditional knowledge base
followed by Germany, France and China.
can be strengthened with the use of microbes
as fertilizers and pesticides. Other eco-friendly The Government of India has implemented
approaches of pest and disease management, the National Programme for Organic Production
can also be integrated to make crop production (NPOP). The main problem with organic production
technology more effective. is the certification and certification standards. The
national programme involves the accreditation
India is bestowed with abundant potential
programme for Certification Bodies, standards
to produce all varieties of organic products due
for organic production, promotion of organic
to its various agro climatic regions. The total
farming etc. As export is the main target of
area under organic certification in 2013-14 was
organic production in the country, our certification
47.2 lakh hectare. Cultivated area under certified
standards should be in conformity with the world
organic farming has grown almost 17 fold in last
standards so that there is no hindrance to our
one decade (42,000 ha in 2003-04 to 7.23 lakh ha
organic exports.
in 2013-14). Need of the hour is to use the bio-
resources, that India is bestowed with, judiciously. It is heartening to know that the NPOP standards
India has plenty of scope for bio-fertilizers and adopted by India for production and accreditation
bio-pesticides which are the main constituents system have been recognized by European
of organic farming. Crop protection is the main Commission and Switzerland as equivalent to their
concern in the organic production. There are standards. Similarly, US Department of Agriculture
more than 200 plant species in our country, which has recognized NPOP conformity assessment
can be used effectively for the management of procedures of accreditation as equivalent to
diseases and pests. Among such plants, neem is that of US. With these recognitions, Indian
one of the most important tree which has a great organic products, duly certified by the accredited
potential for disease and insect-pest management Certification Bodies of India, are accepted by the
in India and other parts of the world. This single importing countries. India is having a total of 11
tree has such potential that it can meet more than certification agencies which are accredited by the
50 per cent requirement of our pesticides in crop Agricultural Products Export Development Agency
production. India has more than 1.8 crore neem (APEDA) for inspection and certification of the
trees with seed potential of 4,14,000 MT which organic agricultural products. The certification
can yield 85,000 MT of oil and 3,30,000 MT of agencies may inspect the records and functioning
oilcakes. Neem pesticides have been reported to of organic farms from time to time to ensure
control more than 200 species of insect-pests, strict compliance to the norms.

A systematic research in organic farming and market facilitation agencies. Further, 30-
can help further reduce the farming cost. The 50 thousand farmers of north-eastern region
government agencies, private sector and producers (NER) will be empowered through the creation
have to play a symbiotic role in promoting and of about 100 farmer producer companies and
facilitating organic production and marketing. equip such companies with full value chain under
The important thing is that the nitrate content its ownership. Efforts will be made to convert
of organic fields is significantly lower due to subsistence farming to commercial organic
avoidance of pesticides and nitrogenous fertilizers farming with end-to-end facilities. This scheme
application in feed and fodder. Organic livestock aim to make North-eastern states as major
farming releases much less carbon dioxide (CO2). suppliers of organic commodities for national and
international markets. Crop production system
will be improved to ensure higher productivity
with better profitability. Organic parks/zones
will be developed with facilities for collection,
aggregation, value addition, processing, storage
and market-linkages for specific commodities
requiring capital intensive technology. Organic
products produced in the NER will be developed
as brands/labels through brand building and
facilitating stronger marketing access under the
ownership of growers organizations/ companies.
Presently, India produced around 1.24 million The emphasis is on value addition so that
MT of certified organic products which includes organic produce grown in these parts find domestic
all varieties of food products namely Sugarcane, and export markets. The North East Region is
Cotton, Oil Seeds, Basmati rice, Pulses, Spices, Tea, one of the focus regions of Government of India
Fruits, Dry fruits, Vegetables, Coffee and their value owing to its strategic location, cultural diversity
added products. The production is not limited to and extremely rich agriculture and horticulture
the edible sector but also produces organic cotton resource. The north eastern hill region of India
fiber, functional food products etc. Among all the consists of eight states viz., Assam, Nagaland,
states, Madhya Pradesh has covered largest area Mizoram, Meghalaya, Tripura, Manipur, Sikkim and
under organic certification followed by Himachal Arunachal Pradesh. These States were identified
Pradesh and Rajasthan.
for promoting organic farming at the early stage
Organic value chain development in North when the organic movement started to pick-up.
East Region There is lot of scope for organic agriculture
The government has launched a value chain in the hills especially in the north eastern region
based organic farming scheme, called the Organic of India. First, the use of inorganic fertilizers and
Value Chain Development in North East Region. chemicals is meagre in the region. The farmers of
The scheme aims at development of certified the region, in general and hill farmers in particular
organic production in a value chain mode to are having apathy towards use of agro-chemicals.
link growers with consumers and to support the Secondly, farming on the hills remained based on
development of entire value chain starting from low input-low risk- low yield technology and the
inputs, seeds, certification, to the creation of average yield of most of the crops remained far
facilities for collection, aggregation, processing, behind. The strength of north eastern hilly region
marketing and brand building initiative. for promoting organic farming can be summarized
as under.
Under this scheme, a replicable end-to-end
organic value chain models will be developed North Eastern Region (NER) is home to some
in each of the north eastern state with the niche crops like Assam lemon, Joha rice, medicinal
integration of growers, handlers, processors rice and passion fruits which have high market

demand. NER accounts for 45 per cent of total banned. Farmers therefore had no option but
pineapple production in India and an Agri-Export to go organic. This shows Sikkim Governments
Zone (AEZ) is already set up in Tripura. Sikkim is concern for preservation of the sensitive ecology
the largest producer of large cardamom (54 per and environment. The state with an average
cent share) in the world. NER is the fourth largest fertilizer consumption rate of 5.8 kg per ha, is
producer of oranges in India. Best quality ginger the third lowest fertilizer consumption state in
(low fiber content) is produced in this region and the country. Kerala is another State with mission
an Agri-Export Zone (AEZ) for ginger is established to convert the farming practices to organic.
in Sikkim. There are many advantages for organic
Organic farming began finding momentum in
farming in the North Eastern Region. Extent of
Kerala since the unveiling of a policy in 2010 that
chemical consumption in farming is far less than
set the goal of converting the entire agricultural
the national average. Approximately 18 lakh
production in the State to organic within 10
hectare of land in NER can be classified as Organic
years. As per the announcement of the State
by Default. There is thin population density per
Government, agriculture will take the organic
square kilometre. There is dependence of mid and
route by the end of 2016. Production of bio-
high altitude farmers on within farm renewable
control agents, bio-pesticides and bio-fertilisers,
resources which are important input for organic
however, is yet to gain momentum in the public
farming. In addition, there are time tested
sector organisations. Stepping up their production
indigenous farming systems and use of indigenous is important to meet the needs of farmers and give
technical knowledge in agriculture. a big push to the organic farm sector. At different
Despite the immense potential of organic levels, however, efforts are moving in right
produce in the region, there are many structural direction. In addition, States like Uttarakhand,
challenges in the form of lack of post harvest Himachal Pradesh are also making good efforts to
technology, supply chain, branding and certification promote organic farming with accelerated efforts
of produce, lack of private investment and of the respective governments.
appropriate aggregation model for marketing of In this budget a new scheme, Rashtriya
produce. It requires cold chain, storage facilities, Gram Swaraj Abhiyan has also been proposed
processing facilities like drying units for ginger, with allocation of Rs. 655 crore. The scheme
turmeric, pineapple etc. There is need to create will help Panchayat Raj Institutions deliver
broad infrastructure with the development of Sustainable Development Goals. This scheme
export zones, packing houses with facilities of should also emphasize on harnessing natural
sorting, grading and packaging. Logistics and resources so that farmers can make use of these
transport facilities are also important for early and resources in enhancing agriculture productivity.
timely access to the market. There is also need for Farmers can be trained in making of vermin-
creation of marketing infrastructure in terms of compost, bio-pesticides so that organic farming
special economic zones, food parks etc. is popularized.
Sikkim-the Role Model in Organic Farming In the last, we have to remember that
Sikkim has become Indias first fully organic agriculture needs priority by ensuring continuous
state by implementing organic practices on infusion of investment in the form of technology
around 75,000 hectares of agricultural land. and capital so that farmers are not constrained.
Sikkim achieved fully-organic status in December, The Budget 2016-17 reassuringly does that. It
2015 and Prime Minister formally announced would certainly help India emerge as lead producer
this at a sustainable agriculture conference in of organic products.
Gangtok on January 18, 2016. It was 12 years (Authors are Principal Scientist, Department
ago in 2003 when Sikkim decided to become an of Plant Pathology and Senior Scientist, Department
organic farming state through a declaration in the of Soil Science respectively at Dr. Y.S. Parmar
legislative assembly. Later the entry of chemical University of Horticulture and Forestry, Himachal
inputs for farmland was restricted and their sale Pradesh. Email: hrg_mpp@yahoo.com)

Budget 2016-17
A Sanjeevani For Livestock Sector
Dr. M J Khan
I
ndian agriculture is a vocation that has been during 2014-15 as compared to 13.76 crore tonnes
persistently pursued by more than half of the during 2013-14, recording a growth of 6.26 per
countrys population. Although the contribution cent. The spurt in milk production even overtook
of the sector to the larger Indian economy is the world average which has been pegged at 3.1
seemingly less significant, the way in which this per cent in 2014 by FAO.
sector is intertwined with the culture and ethos of
India occupies premier position in its livestock
the Indian population is profound. The involvement
wealth with 21.5 crore cattle, 9.8 crore buffaloes,
of a larger population has kept this age-old
6.1 crore sheep and 12.4 crore goats, thus being
profession simple, and to a larger extent traditional.
first in case of cattle and buffalo, second for goat
However, the ingress of better technologies in the
and third, fourth and fifth for sheep, duck and
sector is not rare, and the sector is seen vehemently
chicken respectively.
espousing modern technologies with the changing
demands of the sector. Poultry, a segment deeply embedded into the
rural fabric of India has showed immense progress
Nevertheless, there is a sizeable section
lately. During 2014-15, Indias egg production
of farmers who still prefer to do the business
was recorded at 78.48 billion, while poultry meat
old way. For them, agriculture is not a stand
production was estimated at 3.04 MT.
alone profession, but a part of a myriad of farm
activities. Agriculture in many farms are practiced
as mixed farming in conjunction with livestock
which has, so far, been supplementing farmers
income copiously. The recent times have been
particularly distressing for the Indian crops as two
consecutive droughts have mercilessly thrashed
them, reducing the farmers income and profit
to a pittance. Livestock which invariably forms a
component of Indias many non-descript farms, in
a way has kept these farms and farmers alive and
afloat.
The Vibrant Indian Livestock Sector

As the Economic Survey 2015-16 has rightly
pointed out, the Indian agricultural system is Fisheries constitute about 1 per cent of the
predominantly a mixed (crop-livestock) farming GDP of the country and 5.08 per cent of agriculture
system, with the livestock segment supplementing GDP. The total fish production during 2014-15 was
farm incomes by providing employment, draught 10.16 MT, an increase of 6.18 per cent over 2013-
animals and manure. But this does not reduce 14. Fish production during the first two quarters
livestock to a dim ally of the agriculture sector. In of 2015-16 has also shown an increasing trend and
fact, livestock sector is one of the fastest growing is estimated at 4.79 MT.
component of agriculture. A glance through the
Livestock today has assumed an even bigger
production numbers and statistics is enough to
role considering its rapidly surging contribution
prove the point.
to agriculture GDP. Today livestock controls more
India ranked first in milk production, than quarter of the contribution fromagriculture
contributing 18.5 per cent of world production and sector. This transformation is of significance
achieving an annual output of 14.63 crore tonnes considering the fact that more than eighty percent

of livestock is maintained by small and marginal population and quite boisterously flaunts the
farmers. Dairying has emerged as an indispensable credit of being the worlds largest milk producer,
component of rural India and for farmers as they we dont have the strength to compete globally
become dependable sources of income and an in terms of productivity. Average productivity per
asset that can be relied on at times of distress. animal per day in India is around four litres, which
Livestock presents a reliable employment avenue is much lower than countries like New Zealand
for rural youth and can also play a seminal role in and Australia, where it is around 20-25 litres per
empowering women financially. Considering the day per animal.
impact this sector has on the general well being
Considering the ineptitude of the small and
of the Indian farmers and rural India, this budget
marginal farmers to maintain proper health of
has laid tremendous emphasis on this segment
their livestock and a virtually non-existent habit
through some palpable gestures and initiatives.
of maintaining a personal record of animal health
Budget Bolsters Livestock indices, Nakul Swasthya Patra in a true sense will
be revolutionary if implemented with the same
Union Budget 2016-17 has laid a tremendous intention. This health card can help the dairy
amount of thrust on agriculture sector and has very farmer to keep a record of his livestock, as well
emphatically advocated for rural development. as information regarding the age and dates on
A very exciting news as far as the livestock and which to carry out vaccination and insemination.
dairying sector is concerned. The card would keep track of the veterinarian
While the Union Finance Minister has who has given the medicine, vaccination, artificial
structured his budget on nine pillars, it is insemination and genetic background of the bull
heartening to find agriculture and rural sector or semen used. A record can be maintained by
find place among them. The government owes the farmers which would translate to be the
this much to the farmers for whom the year that
passed was both tumultuous and harrowing.
A stand out gesture that was repeatedly
highlighted by the media and the stakeholders
in the budget was the declaration to double
the farmers income by the year 2022. Animal
Husbandry can play a seminal role in bringing
about this change. So the budget this year, has
quite generously allocated Rs.850 crores towards
the sector through four programmes which are
truly innovative and pioneering. first step towards scientific management of the
animals in India. Later on these health cards can
Pashudhan Sanjivani, an animal wellness
be integrated with other animal welfare schemes
programme and provision of Animal Health Cards
for better reach and implementation.
(Nakul Swasthya Patra); an Advanced breeding
technology; Creation of E-Pashudhan Haat, an Creation of E-Pashudhan Haat which is an
e market portal for connecting breeders and e-portal for connecting farmers directly to the
farmers; and a National Genomic Centre for breeders, speaks of transparency and expediency.
indigenous breeds have set the stage for ushering The earlier practice of depending on the
in a complete transformation in this sector. middlemen to carry out the trading often takes
away the simplicity and the honesty from the
Pashudhan Sanjivani, an animal wellness
transaction. By bringing the farmers into contact
programme twinned with the distribution of animal
with real breeders through a digital interface, is
health cards (Nakul Swasthya Patra) along the lines
going to herald a new era in the livestock sector.
of soil health card, draws a pertinent correlation
between animal health and output. Although Another move that was hailed widely
India boasts of having the worlds largest livestock by the industry was the announcement on

National Genomics Centre. Indias wealth of cattle on the other hand, becomes a more
indigenous breeds has somehow never assumed practical and useful solution for them to raise
centerstage in any of the government backed their incomes. Over the past few decades, Indias
livestock programmes. The Indian breeds have agricultural growth has hardly ever exceeded
thenceforth were neglected, abandoned and three per cent a year. Keeping in view the pro-
restricted to certain pockets without the desire poor nature of agricultural growth, the National
to be conserved or strengthened. This Center Agricultural Policy (NAP 2000) targeted a 4 per
founds resonance with the agriculture ministers cent annual growth in agricultural sector by
sentiments of conserving the indigenous breeds 2020, and emphasized livestock as an important
of cattle. The proposed genomics center holds driver of growth. The schemes introduced for the
the promise of unleashing the potential of many livestock sector in the budget, has the potential
hitherto neglected breeds of cattle which would to enhance the productivity of the livestock and
eventually help the farmers to improve their hence the incomes derived from this segment
dairying productivity by inculcating the traits of adding to the income of farmers. The vision of
disease resistance and clim ate resilience. the Prime Minister to double up the incomes
would only become a reality if the livestock
Fully aware of the significance of organic sector progresses and expands. This budget
agriculture, this budget has introduced new holds the key for that development.
schemes Parmparagat Krishi Vikas Yojana
and Organic Value Chain Development in Todays rural India is an amalgamation of
North East Region. The former cherishes the small farms, most often with land holdings of
ambitious dream of bringing 5 lakh acres under less than two hectares. In all likelihood, this will
organic farming over a three year period. This further deteriorate in future, restricting the
indirectly speak volumes about the demand farmers to derive benefits from crop production.
the organic manures are going to experience Livestock thus is an important source of income
which is a byproduct of the livestock sector. for smallholders and the landless. Products like
Using cowdung as a manure for agriculture, milk and eggs, are steady source of cash income,
is an age old practice. Even now, they are an and live animals are important natural assets for
important component of farm fertilization the poor, which can be easily liquidated for cash
schedule especially in the mixed farms. With the during emergency.
recently acquired boost to organic agriculture, Smallholders and marginal farmers, being
the demand for livestock byproducts is going to the custodian of more than three forth of
peak adding another reason for the rural India livestock operations in India, a rapid growth in the
to maintain ample cattle heads. livestock production will have a multiplier effect
A much heralded and celebrated on agriculture and hence on rural prosperity.
announcement in the budget was its repeated The budget has therefore rightfully accorded due
significance to livestock, whether it is directly
emphasis on doubling the farmers income by
through programmes like Pashudhan Sanjivani,
2022. The prospect of doubling the income would
Nakul Swasthya Patra, E-Pashudhan Haat,
not materialize without the participation from
National Genomic Centre or indirectly through
the livestock sector. It would be a gargantuan
the stress on organic farming or with the clarion
task for the government to bring about a marked
call to double the farm incomes. These measures
change in the income patterns of the farmers,
are sure to usher in a technology backed scientific
without involving the quintessential livestock
upheaval in the livestock sector of the country and
segment. Livestock has always been a subsidiary
hence a much more brighter and prosperous rural
of agriculture and hence complemented the
India.
income from agriculture. Small and marginal
farmers have limitations when it comes to (Author is Chairman, Indian Council of Food
expanding their crop production bases owing and Agriculture. Email: mjkhan.agriculture@
to obvious constraints of land area. Rearing gmail.com)

Budget 2016-17
Both Budgets Going Green
Dr. Rina Mukherji
The Union and Railway Budgets have, for the A very important move is the widening of
first time, been extremely explicit about going e-ticketing, cancellation and feedback facilities for
green. This has found expression in a number of paperless operations. Passengers can also request
measures in keeping with the Swacchh Bharat for cleaning of berths and coaches through
campaign initiated by the Modi government. mobiles now. Meanwhile, a pilot scheme for sale
of tickets through hand-held terminals, e-ticketing
Rail Budget for foreign debit/credit cards, bar coded tickets,
The Rail Budget 2016-17 presented by Rail scanners and access control is also to be put in
Minister Suresh Prabhu set the ball rolling with a place, thus bringing down the generation of paper
slew of green measures. Some of these are a follow- waste thus saving trees.
up of what had been introduced in the past, while
Union Budget
others were new concepts designed to make the
Railways usher in a greener culture in future. The Union Budget 2016-17 followed in few
days time- with several bold measures to clamp
As per the Rail Budget 2016-17, LED luminaire
down on pollution and pollutants.
will be used for advertisement billboards and all
new lighting in non traction areas with the aim of Chief among these are measures meant to
reducing energy consumption by 10-15 per cent. dissuade the use of private cars, and especially those
Since LED lamps have a much longer life-span and that are diesel-operated. An infrastructure cess has
are recyclable, they have low maintenance costs been levied on all cars- small petrol, LPG and CNG
and consume 75 per cent less energy than the
normal incandescent lighting, it would definitely
result in a lower carbon footprint.
Rainwater harvesting systems are to be
provided in all establishments with rooftop areas
that are more than 200 square metres, and
environment-friendly composite sleepers made
of recycled plastic waste are to be set up over all
girder bridges. Besides, solar plants of a total 100
MW capacity, and wind power plants of 132.5 MW
are to be set up, and all production units of the
cars will attract 1 per cent, diesel cars 2.5 per cent,
Railways, as also at least one workshop in every
and SUVs and higher engine capacity vehicles will
Zone, will be turned into a green industrial unit.
attract a 4 per cent cess. Electric vehicles, hybrid
This is indeed laudable, and should help in saving a
vehicles, three wheelers, hydrogen vehicles using
good deal of energy and water.
fuel cell technology, cars for physically challenged
The Railways also intends to encourage persons, ambulances and vehicles registered for
floriculture and horticulture along the tracks, initiate use solely as taxis are exempt from this cess. Based
waste segregation at stations, conduct awareness on the polluter pays principle, this is indeed a giant
campaigns for cleanliness besides setting up storage step ahead.
facilities on vacant land for fishermen and farmers.
The budget has also doubled the Clean
Most significantly, 30,000 new bio-toilets will Energy Cess on coal and lignite from Rs 200 per
be installed in trains. Portable structures with bio- tonne to Rs 400 per tonne. Knowing how polluting
toilets are also to be set up at select stations for coal and the generation of thermal power from
women and differently abled. coal is, this is indeed a welcome step. In a bid to

improve public transport, metro projects have teach the basics of organic farming to interested
been allotted about Rs 10,000 crore. To bring in cultivators.
more private investment into the running of buses,
Where vehicular pollution is concerned,
the government plans to amend the Central Motor
higher allocation for metro projects is certainly in
Vehicles Act.
the right direction but lack of last mile connectivity
The Budget also intends to promote organic causes many to shun metro services, especially
farming through the Paramparagat Krishi when they must travel late. So bus services also
Vikas Yojana (Promotion of Traditional Farming needs to be improved.
Scheme), for which more than Rs 400 crore has The government is aiming to attract private
been allotted, LPG coverage is to be extend to all investments for bus services. Private operators
families, including those below poverty line (BPL). across the country can start intra and inter-state bus
The government also intends to develop an services on any route they find profitable. Unlike
organic value chain in the northeast, to give a fillip at present, private bus operators will not require
to the marketing of traditional organic products. permits from the respective state governments for
These measures will not only help conserve water every route they want to operate on.
and forests given the fact that organic methods of Knowing that the running of private buses is
farming are known to minimise the use of water, profit-driven, one cannot solely rely on them. In
as compared to modern, high yielding methods. rural areas, buses run by private entrepreneurs are
In all this, one finds a linkage and coherence absolutely unreliable; I still remember an instance
hitherto never noticed ever. When the Railways in rural Bengal, when a privately-run bus suddenly
talk of bio-toilets, green workshops and announced that it was going no further, since
production units among other green measures, there were not enough passengers for a profitable
and the Finance Ministry talks of organic farming, run. Locals told me that they rarely use the service
renewable power and food security, we find that since it is always erratic; they preferred using their
the government wants the various ministries bicycles to pedal to the nearest town-which was
to work in tandem with each other to conserve nearly 19 km away.
groundwater and harvest rainwater, decentralize Coming to the Clean Energy cess being levied
power generation, promote organic farming to on polluting vehicles. In the rural hinterland,
limit extraction of groundwater from underground which lacks transport infrastructure, it would help
reserves and enhance food security. to promote solar-powered vehicles as a necessary
service. At the moment, a move to replace the
The building of storage facilities on
highly polluting van rickshaws in the Indian
vacant land by the Railways complements the
Sundarbans with 3000 solar-powered vehicles by
governments desire to develop organic cold chains
MNRE and the Mlinda Foundation has failed to
commodity-wise, in the northeast to provide
make headway owing to the sole manufacturer
support to cultivators through efficient storage
of these vehicles hiking up the price. There are
and marketing.
hardly any other options available; Tata Motors
The Challenges is working on a prototype-which is not yet ready
for the market. Given the scenario, it would be
But there can be many a slip between the cup better if some funds are allocated for research and
and the lip. Policies need to backed by action to innovation in this sector out of the Clean Energy
achieve what is intended. Take the case of organic cess, as also subsidies for Green Energy to give a
farming. In spite of being the declared policy of major push to this sector. Given the fact that the
several state governments all over the country, government collected almost Rs 17,000 crore until
results have not been as expected. The scattered 2014-15, and shall raise around Rs 25,000 crore
achievements seen are mainly the handiwork of in 2016-17, allocations for Green Energy would
non-governmental organisations and dedicated certainly be in order. But this fund needs to be
agri-scientists who have taken the initiative to effectively utilised.

What Should the Government Do ? to promote research and innovation to improve
solar storage.
In fact, it would help if the Clean Energy cess is
utilised for innovation in transport, and particularly It would also do well to explore options where
in developing prototypes in solar-powered a mix of renewables such as solar and wind or
passenger vehicles. solar and biomass can be successfully used. Rice
husk systems, bagasse and other agricultural
Where Renewable Energy is concerned, waste, for instance, that are currently being used
it would help if the government directs more to generate power, can be used in conjunction
subsidies towards the solar and renewable sources. with solar or wind energy to meet the needs of
Although, as a tropical country, India has access to under-served rural India.
adequate sunlight round the year, yet solar power is
a capital intensive option. Research and innovation
in this sector needs to be encouraged, particularly
in those areas where power grid is difficult to
extend. This can ensure running water to flush
toilets, run irrigation pumps, and ensure primary
health-care facilities through decentralized off-grid
or micro-grid loops. Since the government aims at
100 per cent electrification of villages, renewable
power is the best, and in many instances-the only
option. Besides, renewable can also help tide over
the power outages and voltage fluctuations of
the (power) grid that characterize it during peak
hours, especially during summer, when irrigation Bio-Toilets & their use/misuse
requirements increase manifold.
A word of course, on bio-toilets. The 2016-17
There is also a major need to improve coal rail budget intends to retrofit all trains with bio-
technology and reduce pollution from thermal toilets in a bid to endorse the Swacchh Rail, Swacchh
power plants. This could easily be done out of the Bharat campaign. Here, it should be remembered,
Clean Energy cess and shall be in keeping with the the Railways have been trying to retrofit trains with
Governments declared intention to clean polluted bio-toilets since 2008. But the results have not been
rivers, such as the Ganga and its tributaries. This always good. The first such attempt resulted in the
fund should be used for renewable energy, clean bio-toilets being dismantled due to the breeding of
coal technology, and pollution control, particularly cockroaches and insects. Several other attempts to
for thermal power plants. The doubling of cess do away with the old toilets came to naught, due to
demands clear protocol for spending for effective the problems in maintenance.
results. Maintenance apart, passengers will need to
Herein, it would help if the governments learn to use the toilets carefully. Where bio-toilets
intention to promote renewables be tied up with are concerned, no paper, plastics or cigarette butts
the aim of giving rural India a developmental thrust. can be thrown into the commode. As a frequent
In many parts of the Indian Sundarbans, solar traveller, I have often come across blocked wash-
power is not just bringing light to millions but also basins in trains owing to passengers washing
improving sanitation through pumps that direct containers and dropping foodstuff in. Bio-toilets
water into overhead storage tanks, and hence flush require a lot more care; the problem is in many
toilets to keep them clean. In fact, solar panels have trains where they are installed, instructions are
been successfully used to even run computers for available in English alone. It is important that these
rural Bengal through mobile vans. instructions are available in not just English /Hindi,
announcements need to be made regularly to
Given the problems of storage that solar educate and instruct passengers about how these
power faces, the Clean Energy cess can be utilised are to be used.

The Railways have announced an awareness northeastern region is one of the largest producers
campaign to maintain cleanliness in trains and of fruit and vegetables varieties, cold chains will
stations. It would do well to tie this up with a need to be suitably designed to give cultivators an
campaign on how to use and maintain bio-toilets advantage.
too.
Moreover, the current system of open markets
Organic Chain for the Northeast has resulted in consumers paying high prices,
while the farmer gets the lowest possible price for
The Organic Value Development Chain for the
his produce. A marketing arrangement wherein
Northeast, with an outlay of Rs 125 crore is a good
privately coordinated supply chains vertically
move to develop the agricultural potential of the
integrated by a variety of anchor players, such as
Northeastern region. Fertile and green, this is one
Producers Organisations, the Branded & Packaged
region that produces some rare rice varieties and a
Foods Companies, Food Processors, Large
plethora of fruits which, in the absence of marketing
Wholesalers and Retailers, Exporters, with Anchor
initiatives and storage facilities never fetch the
Buyers at the front-end and crop management
kind of value they should command. The Budget
programmes with Farmers at the back-end would
promises to build up a chain involving storage
and marketing in a commodity-specific manner best benefit the cultivator, and , according to
with measures to promote entrepreneurship and the Planning Commission, be best suited for the
employment. requirements of the horticultural sector.
Since this would mean the use of skilled The allocation for MGNREGA, in this budget,
manpower, well-trained in basic technology, at Rs 38,5000 crore is the highest ever earmarked
to maintain the storages, it would also involve in a year (Last year, it was Rs 34,699 crore). This
strengthening the existing industrial training will be used to dig at least 5,00,000 farm ponds
institutes (ITIs) in the northeast. At the moment, and wells in rain-fed areas, and 10 lakh compost
these are in such a sorry state, that industries pits in the coming financial year. Compost pits
operating in the region need to impart basic skills are an inseparable part of organic farming, and
to workers recruited from these institutes. should yield impressive results provided additional
storage capacities and cold chains are established
It should be noted-that while India has grown in tandem.
to become the largest producer of coconut, areca
nut, cashew, ginger, turmeric, black pepper and The government intends to give a boost
the second largest producer of fruits, vegetables to organic farming through paramparik
and tea. The production of foodgrains has risen (traditional) methods to enhance food security.
from 82 million tonnes in 1960 to nearly 252 Traditional farming in India was not just organic
million tonnes in 2011-12 that is, 3.07 times, but but characterised by seed banks and exchange of
storage facilities have failed to keep pace. seeds among farmers. These traditional practices
too, will need to be promoted if organic farming
According to a Planning Commission Report, is to thrive in India. For this, the government
the total storage capacity at an all-India level needs to rethink about GM seeds promoted by
stood at just 62.5 million tonnes (as on 30 Nov multinational companies, as also modern, hybrid,
2011), of which 17.20 MT was in the form of Cover or high yielding seeds which cannot be re-used
and Plinth (CAP), that is uncovered save for a by farmers.
raised platform and temporary cover . Of this, 67
per cent of the storage capacity is concentrated Conclusion
in 6 states-Punjab, Rajasthan, Haryana, Uttar
Pradesh, Uttarakhand and Andhra Pradesh, with We certainly acknowledge the 2016-17 Rail
the northeast accounting for less than 2 per cent and Union Budgets as, the greenest and hope
of storage capacity. that they live up to our expectations.
Further, most cold storages are outdated, (author, recipient of several international
having been designed in the60s, and meant for media fellowships, is a senior journalist.
only storing potatoes. Given the fact that the E-mail:rina.mukherji@gmail.com)

Budget 2016-17
One India, Great India
Sunil Kumar
I
ndia, the vast land, cared and reared, like a millions fully bloomed petals of Uttarakhand, fertile
small baby, for time immemorial by the mighty orchards of delicious fruits of Himachal Pradesh,
Indian ocean, Arabian sea, Bay of Bengal on the land of Gods, together make the crown worn
the three sides and great Himalaya on the forth. by the great peninsula. These states are always
The land of envy for invaders from the Alexander on the top charts of the tourists and adventurers.
of Greece to the Chengez Khan of Mangolia .The Some of the most allusive and endangered species
goal of many sea-adventurers from Magellan to like Snow Leopard, Yak, double hump camel, musk
Vasco-De-Gama. The land of spices. The land of deer, bharals, monal etc. are found here. The
Thar desert, rain and deciduous forests. The land of most beautiful lakes and mighty glaciers make it
Bengal Tigers, rhinos, elephants, peacock and the rich terrain and help the plains by nourishing and
king cobra. The land loved and nourished by mother watering them. Siachin glacier boasting as the
Ganges, Satluz, Krishna and Periyar. The land of highest battle field in the world. The herds of yaks
Lord Rama, Akbar the great and the mighty Ashoka. and pashmina goats along with lamas in maroon
the land of guru Nanak, Mira, Kabir and Tulsi das. robes and their tent colonies make a picturesque
The land of Subhash, Nehru, Patel and Abul Kalam. view in the foreground of the barren cold desert.
The land of Dhyanchand, Kapil and Sachin. The The chants of Allah Hu akbar in mosques and Om
land of Amithabh, Shahrukh and Aamir. The land of Mani Padme Hum rhymes vibrate and echo in the
many for centuries. The land once known as Bharat gompas of these valleys.
and Golden Sparrow. The land also called Indian
Peninsula on the world map became the abode of Punjab, the land of five rivers, Haryana, Uttar
many races and cultures in course of time. All of Pradesh and Bihar, the land of Budhha and Mahavira,
them flourished together side by side and entwined together constitute the most fertile plains on earth.
into an inseparable strands of Unity in Diversity, These states are the known as feeder states of the
the DNA of great India. land. Hence the throne of Delhi always remained the
fantasy and envy of the invaders.
At present it is divided into various states
from North to South and East to West, having their Rajasthan, Gujarat and Maharashtra, the land
own cultures and languages. The beautiful valleys of warriors, who fought for their land till the last
surrounded by snow clad sky, touching mountain drop, constitute the left arm of Mother India. The
peaks in Jammu and Kashmir, the heaven on earth, great Thar Desert, Raan of Kuchh and Arabian sea
the lengthy and barren cold desert of Ladakh, the are the jewels of these states. People are tall, stern
land of lamas, boasting of the silk route and double and sturdy known for their different turbans and
hump camels, the valley of flowers, abode of long moustaches.

Seven eastern states, Assam, Meghalaya to distance have shrunk and the world has become a
Arunachal Pradesh, are fondly known as seven global village. The revolution of the technology has
sisters are the right arm of Mother India. The dense revolutionized the speed, especially the smart phone
rain forests are making them rich in flora and fauna. and net revolution has provided the humans the long
awaited freedom of expression. Today they can tell
Madhya Pradesh, Chhattisgarh, the land of and vent their hidden voice boldly through the social
gonds, Orissa and Jharkhand are the mineral mines media. The smart phone has brought the world onto
making the country energy rich. Most of the Indian the palm. The same tools can be effectively utilized
tribes with original habits and habitats are residing by the government and the people to connect
in these states. among themselves. The government of India has
Southern states constitute the mighty legs of taken some smart steps by itself in e- government
Mother India. People are of Dravidian race. Karnataka and digitalization. Now anyone from anywhere in
is the home of science and technology. Andhra and the world can suggest and comment on its policies.
Tamil Nadu are the exporters of the sea foods. Kerala Now people are more involved and feel themselves
is the land of spices and Ayurveda. part of it. This inclusive approach is a big boost to the
morale of people.
Sikkim is the leader of organic farming and
West Bengal is famous for its Adda on chai or tea But as it is always true that technology is a great
friend and the worst foe, it must be carefully used and
argumentation clubs and the abode of music. The
monitored or it could bring havoc and jeopardize the
famous Howrah bridge of Kolkata is situated here on
nation itself. To avoid such catastrophe, the people
the Hugli River.
have to shoulder the responsibilities and make the
But sadly, the land of such a great possession is policies of the government, the movement as their
stigmatized by some narrow minded and short sighted own. The success stories of the successful people,
people. By their petty and selfish motives they are who took the lead and risk, must be documented into
motivating and instigating the people towards the films and biographies and circulated among people.
narrow attitude. They are somehow limiting them There must be movement and zeal among people to
in to a small and narrow mentality of religion and know and learn about the other lands and cultures.
region, which in turn is affecting the broad view of Children should be encouraged and motivated to go
great India.The very foundation of the mighty Bharat on cultural and study tours. Schools and institutions
will be eaten by these mites, if not controlled at the must organize small and big tours around their own
earliest. Instead of hauling the people into a region or village as well as in other states. Government must
religion and in one culture they must be encouraged come forward to sponsor and subsidize these tours.
and motivated to cris- cross the boundaries and New friends, made during the tours, must be kept
learn from each other. This is the real mantra of in touch through the mobiles or social media. The
unity in diversity, the pride of any nation. This is the sweet memories of the tours must be documented
soul of the new scheme announced by government in small movies and in diaries. One must generate
Ek Bharat Shreshtha Bharat. This task must be the hunger and craving for touring. One tour is equal
supported by the government at center as well as by to hundred books.
the state governments. There must be some policies Union is strength. Together we stand, divided
to award and sponsor such feats by government we fall. We have been studying these lines since our
bodies and NGOs. childhood.
It must be the collective task of civil society So, lets be one strong bundle of twigs rather
and the private sectors to effectively implementing than many weak twigs, broken easily by anyone.
the policies of national integration and cultural Lets paint these twigs with the colors and hues of
mixing. Under the corporate responsibilities the our cultures and uniqueness. Lets make it our land
private sectors must come forward and participate rather than my land. Only the one and great India
in such endeavors. They may lend their support can sustain the shock waves of the catastrophes and
and suggestions, if necessary, to the government. disaster around her.
No government, alone, can implement its policies
(Author is a social & environmental activist
without the participation of people. With the advent
E-mail: roshandfamus@yahoo.co.in)
of transportation and communication the time and

Budget 2016-17
inclusive Budget 2016-17
Dr. K. K. Tripathy
T
he Union Budget 2016-17, amidst perceived by the Prime Minister on 19 th February 2015 in
distress in rural areas induced by two consecutive Suratgarh of Rajasthan. The objective of the scheme is
droughts in as many years, tried to step up its to get information about nutrient level of the soil and
focus on agriculture and rural economy. As per the to ensure productive use of fertilisers and pesticides.
estimates of Central Statistics Organisation (CSO), The Budget has provided Rs. 368 crore for National
the growth rates in the agriculture and allied sectors Project on Soil Health and Fertility and also facilitates
in 2014-15 was recorded at dismal -0.2 per cent and provision of around 2,000 model retail outlets
of fertiliser companies with soil and seed testing
for the year 2015-16, it has been pegged at 1.1 per
facilities during next three years (2016-19). Since
cent.
budget announcements need appropriate targeting
The Budget took timely cognizance of the and timely implementation of the development
impending crisis-like situation in the rural farm and activities, it is expected that the government would
non-farm sector and its potential role in ushering an devise an effective and smooth road-map to cover
overall positive economic scenario in the country. It Indias 14.1 crore farmer households without
intended to focus government policy intervention compromising on the quality of soil testing and its
in this important sector and aimed at establishing rightful citation on each of the soil health cards. It is
an enabling atmosphere for poverty reduction, job also high time that the farmers are educated to adopt
integrated pest management along with integrated
creation and infrastructure development. It also
nutrition management as a cardinal principle of plant
appropriately acknowledged the role of agricultural
and soil protection strategy. To make the government
sector in ensuring the countrys food security, and
effort in soil health management successful, farmers
tried to frame a road-map for making the agri- need to be educated intensively about importance
activities remunerative and income-secure. of soil health and in various methods of pest and
Since the agriculture and rural development weed control e.g. mechanical, bio-pesticides etc.
have the potential to propel India into a double- Minimal and judicious use of chemical pesticide and
digit growth trajectory in long term, this paper tries fertilisers, undoubtedly, would be a great support
to analyse some of the pronouncements made in towards organic farming, that government is trying
the Union Budget 2016-17 on agriculture and rural to promote.
development The Budget 2016-17 has given a further fillip to
Ministry of Agricultures two foremost organic farming
Agriculture and Farmers Welfare promotion schemes Paramparagat Krishi Vikas
Budget 2016-17 was presented in challenging Yojana(PKVY) and Organic Value Chain Development
environment. Our exports are declining, global for North Eastern Region. The budgetary support for
economy is sluggish and fiscal deficit was also to be these two initiatives registered a 9.9 per cent increase
contained within limits. Usually, the governments over last years allocation.
focus on productivity and yield growth in agriculture While PKVY aims at bringing 5 lakh acres of agri-
but the agri-policy during 2015-16 highlighted lands under organic farming over the next three years
deterioration of soil health in the Indian agriculture period, Organic Value Chain Development for North
due to unbalanced use of fertiliser, pesticide etc. Eastern Region would enhance value addition in
Hence a sub-scheme for Soil Health Management agriculture and horticulture products in seven North
was conceived under National Mission of Sustainable Eastern States and Sikkim which have high potential
Agriculture. for organic farming.
The Budget has assured its continuous Sustainable farming is the need of the hour.
support for the ambitious Soil Health Card To make this happen, countrys agricultural
Scheme(SHCS)launchedand dedicated to the nation institutions and universities along with the

implementing States, need to undertake research witnessing equitableand desirable improvements
on environment friendly farming techniques in productivity and yield during the post-green
and practices. They need to focus on improving revolutionera.
productivity, efficiencies in resource use and
At this juncture, abudgetarybig pushwasneeded
enhancing product quality. Equally important is to
to boost theinitiatives proposed underKrishonnati
disseminate all such agri-research and improved
Yojana an umbrella programme for various
agri-practices among farmers in the local, easy to
development programmes / Schemes viz. Soil Health
understand languages. This would only ensure an
Card, integrated scheme on Agriculture Cooperation,
organic revolution in the country.
Agriculture Marketing, Agriculture Census &
TheBudget acknowledged the declining growth Statistics, Horticulture, Sustainable Agriculture,
rates in agriculture and allied sector. The country National Agri-tech Infrastructure. Hence these
has also witnessed a decline in the area coverage schemes witnessed a whooping 29.66 per cent hike
of food-grains. Considering irrigation coverage of and got Rs. 7,579.79 crore in Budget 2016-17.
only 46% of net cultivated area and significance of
Crop Insurance and Rural Finance
irrigation in enhancing agricultural production and
food security, the Budget focused on strengthening Just a few days before the Budget 2016-17
Pradhanmantri KrishiSinchai Yojana(PMKSY). The announcements, the government expressed a need
schemetargetesto irrigate the field of every farmer for an effective crop insurance scheme for farmers
and improve water use efficiency.The Budget hopes welfare and approved the Pradhan Mantri Fasal
to bring 28.5 lakh hectares under irrigation under Bima Yojana (PMFBY) and a pilot Unified Package
this scheme. Insurance Scheme (UPIS). The PMFBY, upon its
implementation, would replace the existing National
Access to both domestic and international Agriculture Insurance Scheme (NAIS) and Modified
markets, for realizing appropriate income level, is NAIS from Kharif 2016. This new scheme has got Rs.
critical for our farmers. The positiveand improved 5,500 crore in the Budget and aims to extend farm
agricultural terms of trade which was a major insurance coverage from the existing 23 per cent
reason for cheer among the exporting farmers, to 50 per cent of gross cropped area in next two to
starteddeterioratingsince 2010-11 and continued three years.
up till 2015-16. The rigidity in the domestic agri-
marketing through local mandis has led to the PMFBY has a few innovative provisions for
realization of low prices by farmers in these expanding the coverage of crop insurance and
markets. making this scheme popular among the farmers in
rain-fed areas. Some of the changed provisions,inter
Realising the critical importance of a transparent alia, include enhanced risk coverage in the crop cycle
and effective agri-market for a farmer, the Budget from pre-sowing to post-harvest losses, undertaking
has supported rolling out of a unified agricultural area approach for settlement of claims to the village/
marketing electronic platform. This will be started Gram Panchayat level, reduction of premium paid
first in selected 585 regulated wholesale market by the farmer, ensuring full claim settlement in case
points. The real challenge, however, is that the States of crop loss, claim payment through direct benefit
need to amend their Agriculture Produce Marketing transfer, use of satellite technology in the estimation
Committee Acts (APMC Acts) and suitablycustomizeit of crop loss and related damage settlement and
to facilitate this national agricultural market so as to e-based monitoring for transparent insurance claim
ensure maximum pricerealizationforfarmers. payments.
One cannot deny the fact that theIndian farmers The Budget 2016-17 attempts to boost
suffer from various structural disadvantages agri-investments through direct and indirect
arising out of small and fragmented landholdings, financing by nationalized and their sponsored
depletion in soil quality, lack of access to markets rural bank branches by ensuring effective and
and technology, low level of productivity and hassle-free flow of agriculture credit to the small
income, etc. Inadequate attention to these and marginal farmers and by enhancing private
factors has been the prime reason for not investment in agriculture and agri-supply

chain infrastructure in rural areas. The Budget in skill based manufacturing and services sectors.
2016-17underscores the importance oftimely and
adequate flow of ruralcreditbysettingup an ambitious Developing Dairy Sector
target of Rs. 9 lakh crore of credit target during The Budget has acknowledged the significance
the next fiscal against Rs. 8.5 lakh crore pegged of dairy sector in enhancing the earnings of
in 2015-16. Rs. 15,000 crore has been provided the farmers in rural areas. To make dairy sector
in the Budget Estimate 2016-17 towards interest more remunerative, the Budget has proposed to
subvention on farm loans to ease the burden of loan introduce four new projects to promote animal
repayment by farmers. wellness, advanced breeding technology, marketing
The financial needs of the farmers and rural infrastructure and boost productivity of indigenous
entrepreneurs have increased manifold with the breeds through a National Genomic Centre at a total
passage of time. While the intention of Budget cost of Rs. 850 crore. Dairy has traditionally been a
2016-17 in meeting these ever-increasing credit partner economic resource to the farmers. Improved
needsof millions of poor and low income citizens technology and investment surge into this sector
is praiseworthy, availability of adequate number would help in attracting the countrys youth towards
of formal financial institutions and accessibility this sector. Employment generation in dairy sector
at the door-step are the need of the hour. In the would restrict rural-urban migration and exodus from
field of rural financing, the real challenge is now to farming activities.
cover all the households with the banking/formal
financial network and strengthen these institutions Rural Roads
to render financial services to the poor and needy The Budget reposed its faith in Pradhan Mantri
rural masses. For this, local farmers group, Self Gram Sadak Yojana (PMGSY) which has managed
Help Groups, Joint Liability Groups, Banking to successfully connect the most underdeveloped
Correspondents etc. could be roped in by formal
and remote habitations. Rs. 19,000 crore have been
financial agencies.
allocated to PMGSY which would allow the States
Skill Development to lay new roads and improve the existing ones in
villages and hamlets. This connectivity would ensure
The Budget has laid prime focus on education, that farmers have easy access to market and get
skill development and job creation. To ensure better price for their produce as compared to the
entrepreneurship to the doorsteps of millions of existing local area markets.
youth, the Budget has proposed establishment
of 1,500 multi-skill development centres with an Rural Wage Employment
allocation of Rs. 1,700 crore. Target is to develop
entrepreneurial skills in one crore youth in the Government continues to give serious focus on
next three years. This indicates the governments rural employment generation through its flagship
seriousness to give right direction to countrys scheme MGNREGA. The scheme has been successful
demographic advantage. in building quality and productive community assets.
Its effective workability is a thing to note in a rural
A host of other initiatives like Digital Literacy set up riddled with high incidence of poverty, low
Mission Scheme for rural India, entrepreneurship work participation, increased casualization of labour
education and training through massive open and heavy dependence on agriculture and non-farm
online learning courses through selected schools, sectors.The Budget allocation for the scheme has
colleges, Government Industrial Training Centres been pegged at Rs. 38,500 crore, highest ever.
and vocational training centres may go a long way
in imparting quality education to youth. This would Several studies on the effectiveness of MGNREGA
also bring standardization in education and improve indicates that the works taken up under this right-
skill-sets of youths. Setting up of a National Board based programme, if planned properly with the
for Skill Development Certification would remove the assistance of technical resource personnel at the
difficulties in the skill certification across different local level, could revive the agri-economy at a
sectors and would ensure easy acceptability of youth large scale.It isalsowell documented that todays

rural India requires sufficient work opportunities sector growth, a lot of coordination is required
to meet the burgeoning demand for casual between the Centre and the States.
wage employment in the agriculture as well as
rural non-farm sectors. The positive impacts The Budget 2016-17 embodies a statement of
of MGNREGA have prompted the government to positive economic intent and growth oriented policy
remain committed to supporting this right-based directions. This is evident from the budget allocation
rural wage employment programme with a view to agriculture, irrigation, rural development and
to broaden occupational choices and to assure drinking water. While allocation to agriculture and
generation of employment opportunities in the irrigation, taken together, recorded 84 per cent
rural areasalong with creation of productive quality hike in Budget 2016-17 over the previous year, rural
community assets. development and drinking water budget allocation
(Rs. 1.01 lakh crore) witnessed 13 per cent rise
While allocating Rs. 38,500 crore, the Finance
against the 2015-16 (Rs. 90,185 crore). Besides,
Minister underscored this wage employment
measures related to rural electrification, swachh
programme in supporting irrigation and soil health
bharat abhiyan, self-help groups, social sector,
management efforts by taking up more than 5 lakh
farm ponds and 10 lakh compost pits for production education and skill development are expected to
of organic manures in rural areas. It also proposed boost rural demand significantly. Rs. 2.87 lakh crore
to set up cluster facilitation teams under MGNREGA allocation to local self-government institutions would
to ensure water conservation and natural resource most likely improve rural demand provided these
management. funds are effectively and efficiently spent on the
activities as budgeted for.
Although public works programmes like
MGNREGA are prone to leakages and corruption, While drought and rural distress are on the
transparency and accountability provisions are radar of the Budget, large allocations to rural and
in-built into the rights-based MGNREGA. The real agriculture sector themselves do not guarantee
challenge is how the Centre guides the States to positive outcomes. Thus, it calls for timely and
implement the provisions made in the Act without appropriate execution of development schemes/
compromising the basic spirit and objectives of programmes by clearly delineating intended
the Act. outcomes for the outlays prescribed in the
financial year 2016-17. Agriculture and rural
Concluding Remarks
development schemes are being implemented by
As many as 68 per cent of countrys population the States and their successful implementation
lives in rural areas and 49 per cent of the total not only requires a perfectteam-based and team-
workforce is dependent on agriculture. Amidst coordinated developmentstrategy, but alsoneedsa
rising distress in rural areas due to two consecutive continuous free wheel team communication
droughts and a slowdown in the global commodity between the centre and the States. Then only the
prices compelled theBudget 2016-17 to lay a major objectives of universal rural connectivity, income
focus on rural India and transform farm and non- and employment, sanitation, skill development and
farm sector by pushing up total aggregate demand
irrigation could be achieved as indicated in the broad
in rural areas.
development vision 2022 of the government.Last but
The Budget 2016-17 announcements have not the least is that the intent and the pro-farmer,
attempted to match the need of the occasion for pro-poor direction of the Budget 2016-17 would be
restoring the rural growth engine. Undoubtedly, achieved only if periodically extensive review and
theBudgethas diagnosed the problem areas on the monitoring of the progress of the schemes are made
countrys development sphere and has prioritised and mid-way course corrections taken at regular
the utilization of public resources accordingly. intervals.
The Budget, though, has laid down the broad
contours ofruraleconomic policies and prepared a (author is with Ministry of Agriculture & Farmers
realistic road-map for sustainedfarm and non-farm Welfare. E-mail:tripathy123@rediffmail.com)

Budget 2016-17
Rail Budget 2016-17:
Connecting India, Creating Jobs
Devendra Kumar
I
ndian Railway is the life-
line of the nation. Its vast
network connects the length
and breadth of our country,
with millions travelling by trains
every day. It is the worlds fourth
largest rail network after U.S,
China and Russia. It is not merely
a mode of conveyance, rather it
pervades all dimensions of the
Indian nation - cultural, social,
economic and religious. It unites
the diversity of India.
Our former president Dr. - Improving planning practices SASHAKTIKARAN
Abdul Kalam, famously said that his first train - Forming a holding company of companies owned
journey from Rameshwaram to Delhi helped him by IR AEKIKARAN
understand the diversity of the nation better than - R&D- SHODH AUR VIKAS
any book could have taught him.
- Special Railway establishment for strategic tech
Thus improving and expanding the railway & holistic advancement SRESTHA
services is of paramount importance for the country. - Data Analysis VISHLEHSAN
Rail Budget, traditionally presented days before the - Special unit for transportation research and
Union Budget, lays out the broad roadmap for this. analytics to be set up SUTRA
This year, the Railway minister Shri Suresh - Innovation NAVRACHNA
Prabhu in his second Railway Budget, on 25th
Feb 2016, focused on the idea of diversifying Finance is the blood of any organization. To
Railway income and ambitious target to expand its reform and implement the above mentioned agenda,
infrastructure, improve the customer services and Railway Minister has given financial vision as follows
to regain the lost modal share. To achieve these :-
objectives, Railway Minister has outlined three
Financial Performance
strategies:
For the year 2016-17, Operating Ratio of 92 per
Nav Arjan For New Revenues
cent, (Railways will spend 92 paisa to earn a Rupee)
Nav Manak For New Norms/Policies is expected after including the immediate impact of
Nav Saranchana For New Structure the 7th Pay Commission, as against 90 per cent likely
to be achieved in the current year. It is pertinent to
The budget is reform-oriented budget focused
note that the Ordinary Working Expenses (OWE) grew
on consolidation of vision set out in earlier budgets,
by 32.5 per cent in 2008-09 due to the impact of the
to achieve this the following structural changes will
6th Pay Commission while the target is to restrict the
be made:-
growth of Ordinary Working Expenses by 11.6 per
- Undertaking new beginning NAVARAMBH cent for 2016-17. Further, with an optimistic outlook
- Structural interventions and organizational for the economy and various measures outlined later,
restructuring NAVINIKARAN there is a hope to generate revenue of the order of

Rs. 1,84,820 crore in next year, 10.1 per cent higher growth at the national level and convert Indias largest
than the revised target for the current year. institution into a template for transformation.
Investments and Resource How to achieve the goal : Way ahead
Railways have managed to break away from the Railways will continue to build on this
average capital expenditure of Rs. 48,100 crore over momentum and strive hard to ensure satisfaction
the period 2009-14, and an average growth of only for each of the 7 billion passengers that ride IRs
8 per cent per annum, to achieve a quantum jump. network annually.
This year, the investment would be close to double of
This budget focuses on the common mans
the average of previous years a feat never achieved
comfort. It keeps in mind the welfare of all,
before. For the year 2016-17, the capital plan has
especially the farmers, workers, women, disabled
been pegged at Rs. 1.21 lakh crore.
and the impoverished. Sabka saath, sabka vikas
Vision of Indian railways is not just a slogan, it provides the government
direction of thought and actions. Every customer
The vision of Railway is to provide the citizens of is our brand ambassador, the very reason of our
this country a rail system that they can be proud of existence. Therefore, each time that he or she
a system free from capacity constraints, a system that travels, the satisfaction quotient must go up. That is
is efficient and predictable, a system that is sparkling our endeavor.
and pristine, where the people of this country feel at
ease, where there is plenty of choice in every sphere For the unreserved passenger Antyodaya
of activity, and the ease of doing business pervades Express and Deen Dayalu coaches
the entire railway ecosystem.
This government truly believes that the fate
By 2020, we look forward to meet the long-felt of India would not change unless the lives of the
desires of the common man: common men and women improve. For this purpose,
- Reserved accommodation on trains being Antyodaya Express will be introduced, a long-
available on demand. distance, fully unreserved, superfast train service, for
the common man to be operated on dense routes.
- Time tabled freight trains with credible service This will increase mobility of labour forces. Specially
commitments. The rural masses, who are unskilled. They would get
- High end technology to significantly improve better job opportunity and a better synergy would
safety record. develop between industry and labour.
- Elimination of all unmanned level crossings. Railway will also add two to four, Deen Dayalu
- Punctuality increased to almost 95 per cent. coaches in some long distance trains for unreserved
- Increased average speed of freight trains to 50 travel to enhance our carrying capacity for the
kmph and Mail/Express trains to 80 kmph. masses.
- Semi high speed trains running along the golden Cleanliness

quadrilateral.
Taking forward the momentum on Swachh
- Zero direct discharge of human waste. Rail, Swachh Bharat, Railway will take a string of
This Budget owes its inspiration to the vision measures to improve the cleanliness on stations and
and leadership of our Prime Minister Shri Narendra trains. This will help in generating the employment
Modi. He had once said, My vision is to make for locals and specially the unskilled rural youth.
railways the backbone of Indias progress and The Swach Bharat Abhiyan and Rail Cleaniness can
economic development. We are making all out be clubbed together and the better job opportunity
efforts to translate his vision into reality. to locals can be provided through MNREGA for this
purpose. Railway has more than 12,000 trains and
Our core objective is to improve the quality of 7,500 stations, this will give boost to employment
customer experience at the individual level, become as well as ancillary business for cleaning related
an engine of employment generation and economic materials.

Better catering facility with Local cuisines Further, to build local ownership and
empowerment, a process of giving weightage to
To provide quality food is always a challenge district domicile holders for commercial licenses at
for the Railways. In this budget, provision has been stations, would be initiated. An option is to provide
made to collaborate the start-ups, SHG and IRCTC our customers tea in kulhad. This will create job
to provide local cuisines with different flavours opportunities for the down-trodden.
to onboard customers. Due to smart phone and
different online food apps, it is possible to supply Station redevelopment
the local cuisine/catering services to Individual
passenger as per their demand. This initiative will As per the Rail Budget major programme of
drastically raise the demand for local fresh cuisine, station redevelopment will be initiated in almost
thus it will generate a new niche for rural India from all 7,500 stations. There are huge tracts of land
where train passes and different village will emerge available adjacent to rail network. Railway will
with a new identity due to their unique flavour. lease out this space to promote horticulture and
tree plantation. This will creat employment for the
The government policy of 100 per cent FDI in underprivileged sections, SCs, STs, OBCs etc. This
food processing industry will work as a catalyst for would also augment our food security and would also
setting up new food processing units in villages, prevent encroachment of Railway land. Possibility of
which are the primary supplier of raw material using this track for generating solar energy would
for this industry. If the same is collaborated by also be explored. This will transform the adcecent
start-ups and linked to supply chain management villages and their economies due to large number of
of railway, then it will generate employment for activities.
local youth at one hand and customer satisfaction
on the other. This will create a win-win situation National Rail Plan 2030
for all stakeholders. The model will also work as Railway has decided to develop National
Rail Plan (NRP-2030) in consultation with all the
stakeholders including State Governments, public
representatives and other relevant Central Ministries.
NRP-2030 will endeavour to harmonise and integrate
the rail network with other modes of transport and
create synergy for achieving seamless multi-modal
transportation network across the country. This
Plan will generate huge employment for the villages
due to connectivity and development activities.
Improved rural connectivity with cities/urban areas,
would provide a ready market for rural products.
This is sure to boost the rural economy.
Sustainability and Social Initiatives
advertising and marketing of local flavours, food/ Human Resources/ Skilling
cuisine nationally and globally. As every region of
India is known for its delicious and unique local The Railway has signed MOU with Ministry of
cuisine and food product like Agra is famous for Skill Development. Railway has its establishments
Petha, Bihar for Litti Choka, South India for Idli- at different geographical locations, many of them
Sambar. in rural area too; like workshops, production units,
yards, depot, sheds etc.
A provision has also been made to enforce
reservation in the catering units for Scheduled Railway in partnership with Ministry of Skill
Castes, Scheduled Tribes, Other Backward Classes, Development, will work on massive skill development
Women, Divyang, etc. In this, there is a sub-quota on its premises. Above mentioned units will develop
of 33 per cent for women in each of these reserved Centres of Excellence for Skill Development,
categories. focusing on one/two specialized activities for the

general public. It will also join hands with prominent great heritage and legacy of all the religions
NGOs for skilling people in remote areas, including and pilgrimage places let it be Hinduism, Islam,
the wards of the Railways employees. This initiative Sikhism, Buddhism, Jainism etc which provide
will enhance the skill development opportunity for wide scope for tourism across India. This will
local students and youth and will bridge the gap generate the employment opportunity for the
of demand and supply of skilled labour force for villagers of nearby tourist places, by the way of
industries. providing the tourists support systems like food,
accommodation, transport service and guide etc.
Social initiatives
Conclusion
Railway has also partnered with Khadi and
Village Industries Commission to support creation of The Railway has set on the journey to transform
employment and self-reliance in rural India, resulting Bhartiya Rail. It will achieve significant progress in
in the generation of 17 lakh man days. It will continue all aspects of this transformation, from scale to
to partner with them to develop products and speed, from cleanliness to efficiency to resource
services for passengers and also market them using mobilisation. The transformation of Railway and
IRs vast resources and assets. We will encourage its endevour to transform the social sector will
sourcing of products from SC/ST entrepreneurs. This transform the villages and will generate the huge
will fulfill Prime Ministers agenda of Sabka Saath employment opportunities for the rural masses in
Sabka Vikas. the coming years. It will also provide the cheaper,
faster, accessible, user friendly transport for common
Tourism man with quality service.
Tourism holds great potential for economic (Author, an Indian Railway Personnel Services
development and job creation. Railway will (IRPS) officer is currently posted at Northern
be partnering with the State Governments Railway Zonal HQ. Views expressed are personal.
for operating tourist circuit trains. India has a Email: devendra.irps@gmail.com)

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ut pre-payment Reg.

Vol. 64 No. 06 Pages 52 April 2016 22

The Monthly Journal

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Budgets have been a key policy instrument in Agriculturalness

agriculture. Empirical evidences 2010-1

S. No Sectors/ Schemes for Amount in Rs. Crores

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CFC No & Award Amount Increase over the previous (%)

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Skill, Education and Jobs For Rural India

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Promotion of Traditional Farming to Rejuvenate

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The Vibrant Indian Livestock Sector

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- Semi high speed trains running along the golden Cleanliness

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