India Budget 2015-16 : Mudra Bank With Corpus Of Rs.20,000 cr To Be Set Up To Finance Micro and Small Industries : Arun Jaitely
28 Feb, New Delhi (Odibizinfo)
Finance Minister Arun Jaitley presenting the first full year Budget of the NDA government in the Lok SabhSaturday announced that a Mudra Bank will be established to finance micro and small enterprises with the corpus of 20,000 crore.
In his fiscal consolidation and reform oriented Budget , the Finance Minister said that 8.5 lakh crore credit to be given to farmers in 2015-16. Government will finish the journey to 3 per cent fiscal deficit in two years,he said.
He said the objective of the government is to keep inflation below six per cent. He said India’s economy will grow at 8 to 8.5 per cent and a double-digit growth is feasible. The government is committed to improving the quality of life and to pass on the benefits to common man.
He said the government is committed to provide a roof for each family and will fulfill the promises of Housing for all by 2022.
In his opening remarks, he said the credibility of Indian economy has been re-established and the world is predicting that it is India’s chance to fly. He said the rupee has become stronger by 6.4 per cent.
Jaitley said the economic environment in the country is far more positive than in the recent past. The Finance Minister said that the government’s objective is to improve quality of life and to pass benefits to the common man.
Jaitley said 50,000 toilets have been constructed under Swachh Bharat Abhiyan so far. He said that government has set a target of building six crore toilets. GDP growth is expected to be 7.4 per cent this year and it is poised to go up to 8-8.5 per cent next year.
Jaitley said the government has taken the states on board as equal partners in the economic growth. The Finance Minister said domestic and international investors are looking at India with renewed hope. He said the latest Consumer Price Index (CPI) indicates that the inflation is 5.1 per cent and the wholesale price inflation is negative.
He said as two thirds of the country’s population is below 35 years, the government will ensure creation adequate jobs to make India a manufacturing hub. Earlier, the Union Cabinet approved the General Budget.
The trinity of Jan Dhan, aadhaar and mobile technology will be used to check pilferage of subsidies.
He announced allocation of 5,300 crore rupees for micro irrigation and aims to make India a manufacturing hub of the world.
The Finance Minister said that the government proposes to keep the fiscal deficit target of 3.9 per cent for year 2015-16, 3.5 per cent in 2016-17 and 3 per cent in 2017-18. He said Goods and Services Tax (GST) will be rolled out next year. The government is intending to achieve the fiscal deficit target of three per cent in the next three years.
He said the government needs a well-targeted system of subsidies rather than to cut them. The Finance Minister has announced the allocation of 5,300 crore rupees for development of micro-irrigation. He said a target of 8.5 lakh crore rupees credit will be extended to farmers in 2015-16. Mr Jaitley has proposed 25 thousand crore rupees to the Rural Infrastructure Development Fund.
He said the government is committed to utilise the vast postal network spread across the villages of the country to provide for increasing access to the financial system. He said the government will bring a bankruptcy code in 2015-16 to meet the global standards in the banking system as for easing of doing business. The government will also the Prime Minister Suraksha Bima Yojana offering the coverage of two lakh rupees for just paying premium of twelve rupees.
He listed Jan Dhan Yojana, coal auction and Swacch Bharat programme as major achievements of the government. He said one of the other achievements of has been is to conquer inflation.
He said the yojana will increase the access to insurance and will be linked with Prime Minister’s Jan Dhan Yojana. The Finance Minister said the government will also propose to launch Atal Pension Yojana, which will provide a defined pension to the old beneficiaries. To encourage the participation, the government will contribute 50 per cent of the premium in its new accounts opened before 31st of December this year.
The government also proposes the creation of a universal social security system for all the citizens. He said a National Infrastructure Fund will be set up to leverage Infra companies. He also announced tax-free bonds for roads, railways and irrigation. The Finance Minister said the Public-Private-Partnership will be revised and revitalised. An expert committee will also be set up to examine the need for multiple prior clearances.
He said initial sum of 150 crore rupees has been proposed to create a world class IT hub to take advantage of competitiveness.
Jaitely said the Mahatma Gandhi National Rural Employment Guarantee Scheme has received the highest ever allocation, which will help in increasing the daily wages of the beneficiaries. He proposed an additional allocation of 5,000 crore rupees this year.