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Union Budget 2018 (Part 2)

17-02-18

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Continuing from our earlier article where we focused on how Budget 2018 impacts you, let us look at it this time from broader perspective.

Budget 2018 reaffirms the strategic focus areas of the current Government –

Roti (Farm income/ Ujjawala), Swasthya (Aayushman / Swach Bharat), Makaan (Awas Yojna, Udan)

In this article, we will discuss the budgetary announcements and allocations across these focus areas (wondering why Swasthya instead of Kapada? read our first article).

Roti
• Government has promised a Minimum Support Price of 50% margin or 1.5 times over cost of cultivation to boost farm output. Farmers will be compensated either via direct procurement of crops or paying the difference between MSP and Market price.
• Creation of a robust and transparent Agri market. This budget aims to connect 22,000 rural market with e-NAM platform with an expense of Rs. 2,000 Crore. This will serve as Mini-marts for the farmers.
• Increase in the target of beneficiaries under Ujjwala (free LPG) from 5 cr to 8 cr .

Swasthya
• The “Aayushman Bharat” scheme popularly dubbed as “Modicare” if implemented properly, will be the world’s largest and most ambitious health care project.
• This scheme will provide a Rs. 5 lakhs health cover per year to 100 million households or 500 million poor people.
• Allocation of Rs 1200 cr for National Health Policy 2017 which envisages creation of 1.5 lac Health and Wellness Centres over time, which would provide comprehensive healthcare, free essential drugs and diagnostic services.
• Construction of 2 cr toilets under Swachh Bharat Mission.

Makaan
• 120% increase in allocation to affordable housing. (Rs 64,500 cr in FY19 vs. Rs 29,500 cr in FY18). More than 1 cr houses to be built in rural areas over two years (51 lac houses in FY18 and 51 lac houses in FY19) and 37 lac houses sanctioned in urban areas.
• 99 cities selected under Smart City scheme to build cities with state-of-the-art amenities. While total outlay is Rs 2 lac cr for projects like intelligent transport systems, solar rooftops etc., so far projects worth Rs 2350 cr have been completed and projects worth Rs 20,852 cr are under progress.

In addition the focus seemed to be on:

Education
• A new scheme named as RISE (Revitalising Infrastructure and Systems in Education) announced. The union Government is working to integrate the education sector which means no segmentation from Pre-school to Standard XII. It will be financed by Restructured Higher Education Financing Agency (HEFA) which is acting as a non-banking financial company
• Government also proposed to construct special schools for tribal children in their own environment. This project will be known as “Ekalavya”. At least 20,000 children will be benefitted. This schools will be at par with Navodaya Vidyalayas
• It is also proposed to set up 24 new medical colleges by upgrading existing district hospitals in the country. Then it will be one medical college for every three parliamentary constituency
• PM Fellowship programme was also announced where 1000 top B.Tech students will get an opportunity to pursue Ph.D in IITs and IISc for free

Infrastructure
• To strengthen the roads network, the government allocated about Rs. 30,000 Cr (Budgetary estimate). The ambitious Bharatmala project will need a total outlay of Rs 1000 Cr, and NHAI will try to fund the project by monetizing through toll outlets, newly introduced InviT funds etc.
• Government also announced its plan to create infrastructure to create seaplanes, aeroplanes, ports (Sagarmala) etc. Noticeable among those is the UDAN (Ude Desh ki Aam Nagarik) scheme, which will subsidize flight fare while connecting 56 unserved airports.
• The two schemes to improve Rural livelihood the “Pradhan Mantri Gram Sadak Yojana” and the “Pradhan Mantri Awaas Yojana” will boost “Ease of living”.
• Budgetary support for Railways has been increased by 32% to Rs. 53,000 Cr for installing new railway tracks, refurbishment of existing railway stations, maintenance etc. Read here to know more about budgetary allocation for railways.

Lets look at how Govt finances look like:

 

Inline image 1 

 

Inline image 1
 
It is not too different from our how household budget, isn’t it? 
 
In case you are interested, you can study in detail at http://www.indiabudget.gov.in/budget.asp
 
Hope you enjoyed reading our Budget special articles.

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