THE ECONOMY : AN OVERVIEW
Flagship Programmes
National Rural Employment Guarantee Scheme (NREGS): NREGS to be rolled out to
all 596 rural districts in India with provision of Rs.16,000 crore; More money will be
provided to meet the legal guarantee of employment as demand rises.
Jawaharlal Nehru National Urban Renewal Mission (JNNURM): Allocation for
JNNURM increased to Rs.6,866 crore in 2008-09 from Rs.5,482 crore in 2007 08.
Rajiv Gandhi Drinking Water Mission: Allocation for Rajiv Gandhi Drinking Water
Mission enhanced to Rs.7,300 crore in 2008-09 as against Rs.6,500 crore in 2007-08;
Total Sanitation Campaign: to be provided Rs.1,200 crore in 2008-09.
Desalination Plant near Chennai: Rs.300 crore in 2008-09 for a desalination plant near
Chennai to be set up under public private partnership.
North Eastern Region (NER): Ministry of Development of North Eastern Region to be
provided Rs. 1,455 crore. Including this amount, total Budget allocation for NER, to
increase to Rs.16,447 crore in 2008-09 from Rs.14,365 crore in 2007-08.
Development and Finance Corporations: Additional equity contributions proposed for
National Minorities Development and Finance Corporation Rs. 75.00 crore, National
Finance and Development Corporations for weaker sections comprising Safai
Karamcharis, Scheduled Castes and Backward Classes. Rs. 106.50 crore, National/State
Scheduled Tribes Finance and Development Corporations Rs. 50.00 crore, National
Handicapped Development Corporation Rs. 9.00 crore.
Scholarships: Pre- and post-matric scholarship programmes announced in previous
Budgets for SC, ST, OBC and minorities to get further funds in 2008-09: Scheduled
Castes (Rs.804 crore), Scheduled Tribes (Rs.195 crore), Other Backward Classes
(Rs.164 crore) and Minorities (post-matric) (Rs.100 crore).
Rajiv Gandhi National Fellowship Programme: supporting SC and ST students
pursuing M.Phil and PhD courses allocated Rs.75 crore in 2008-09.
Minorities: Allocation to the Ministry of Minority Affairs increased from Rs.500 crore in
2007-08 to Rs.1,000 crore in 2008-09; Report of the Justice Rajindar Sachar Committee
taken up for speedy implementation.
Women and Children: Rs, 11,460 crore has been provided for 100% women specific programmes and Rs.
16,202 crore for schemes where at least 30 per cent allocation is for women specified
programmes.
Allocation for Ministry of Women and Child Development enhanced by 24% to Rs. 7,200
crore in 2008-09.
Self Help Groups: Life Insurance Corporation of India being asked to scale up Janashree Bima Yojana
scheme to cover all women self help groups that are credit-linked to the banks; of Rs.
500 crore proposed to be contributed to the corpus of the Social Security Fund with
annual contributions to be made as the scheme is scaled up.
Supplement to GBS: Rs.8,365 crore provided as additional funds for Plan 'B' through two supplementaries in
2007-08; additional resources to the tune of Rs.10,000 crore to be mobilized under Plan
'B' for Plan Capital expenditure in 2008-09 also.
Agricultural Credit: Growth of agricultural credit set to exceed target set for 2007-08. For 2008-09, target set
at Rs.280,000 crore, with short-term crop loans continued to be disbursed at 7 per cent
per annum; initial provision of Rs.1,600 crore made for interest subvention in 2008-09.
Investment in Agriculture: Gross Capital Formation (GCF) in agriculture as a proportion of GDP in the agriculture
sector improves from a low of 10.2 per cent in 2003-04 to 12.5 per cent in 2006-07;
Target to raise it to 16 per cent during the Eleventh Plan to achieve the growth rate of 4
per cent.
Water Resources:
Accelerated Irrigation Benefit Programme (AIBP): 24 major and medium irrigation
projects and 753 minor irrigation schemes to be completed in 2007-08, creating
additional irrigation potential of 500,000 hectare; Outlay for 2008-09 increased to Rs.
20,000 crore, from Rs.11,000 crore in 2007-08.
Rainfed Area Development Programme finalised and to be implemented in 2008-09
with an allocation of Rs.348 crore. Priority to those areas that have not been beneficiaries
of watershed development schemes.
Centrally Sponsored Scheme on Micro Irrigation: Rs.500 crore being allocated in
2008-09 with a target of covering 400,000 hectare.
Water bodies: Agreements for a total sum of US$738 million signed with the World Bank
by the Governments of Tamil Nadu, Andhra Pradesh and Karnataka to repair, renovate
and restore water bodies. Similar agreements to be signed between the World Bank and
the Governments of Orissa, West Bengal and some other States.
Irrigation and Water Resources Finance Corporation: 14 irrigation projects approved
as National Projects by Government; Irrigation and Water Resources Finance
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