The Economy : An overview

• The Gross Domestic Product increased by 7.5 per cent, 9.4 per cent and 9.6 percent in first three years, of the UPA Government resulting in an unprecedented average growth rate of 8.8 per cent. The drivers of growth continue to be 'services' and 'manufacturing' which are estimated to grow at 10.7 per cent and 9.4 per cent respectively.
  
  
• Growth rate in agriculture for 2007-08 is estimated at 2.6 per cent.
  
  
• Food grain production in 2007-08, estimated at 219.32 million tonnes-an all time record. Rice production at 94.08 million tonnes, maize at 16.78 million tonnes, soya bean at 9.45 million tonnes, cotton at 23.38 million bales each, an all time record.
  
  
• Rashtriya Krishi Vikas Yojana launched with an outlay of Rs. 25,000 crore, National Food Security Mission with an outlay of Rs. 4,882 crore under National Policy for Farmers in the Eleventh Five Year Plan.

The growth story : Faster and more inclusive

• Agricultural credit poised to reach Rs. 2,40,000 crore by March, 2008.
  
  
• 11.4 crore children covered under Mid Day Meal Scheme, the largest school lunch programme in the world.
  
  
• Under National Rural Health Mission 8,756 primary health centres have been made 24x7 .
  
  
• 1,82,000 girls enrolled in residential schools under Kasturba Gandhi Balika Vidyalaya Scheme.

Bharat Nirman

• Bharat Nirman has made impressive progress in 2007-08 with 290 habitations provided with drinking water each day, 17 habitations connected through all weather road, 52 villages provided telephones, 42 villages electrified & 4,113 rural houses completed each day.

Eleventh five year plan: The crucial second year

• GBS 2008-09 at Rs.2,43,386 crore higher by Rs. 38,286 crore over 2007-08. Central Plan allocation at Rs.1,79,954 crore, an increase of 16 percent over 2007-08; Bharat Nirman to get Rs. 31,280 crore.
  
  
• Sarva Shiksha Abhiyan (SSA): Sarva Shiksha Abhiyan provided Rs.13,100 crore with the focus to shift from access and infrastructure at the primary level to enhancing retention and improving quality of learning. Mid-day Meal to get Rs. 8,000 crore; secondary education to get Rs. 4,554 crore.
  
  
• Jawahar Navodaya Vidyalaya : Rs. 130 crore provided in 2008-09, to establish Navodaya Vidyalaya in 20 districts having large concentration of Scheduled Castes & Scheduled Tribes.
  
  
• Kasturba Gandhi Balika Vidyalaya: Funds (as part of SSA) provided for additional 410 Vidyalayas in educationally backward areas. Rs. 80 crore allocated to set up new or upgrade existing hostels attached to Balika Vidyalaya.
  
  
• National Means-cum-Merit Scholarship: Rs. 750 crore allocated to build up a corpus of Rs.3,000 crore in four years. 1,00,000 Scholarship to be awarded beginning 2008-09.
  
  
• Nehru Yuva Kendra: Rs. 10 crore allocated in 2008-09 to set up a Kendra in 123 districts, and to cover recurring expenditure in the first year.
  
  
• Mid Day Meal Scheme: Extended to upper primary classes in Government and Government aided schools in all blocks which will benefit 2.5 crore children taking the total number of children covered under the scheme to 13.9 crore.
  
  
• Institutes of Higher Education: India to become a knowledge society, three IISERs at Mohali, Pune and Kolkata; and an IIIT at Kanchipuram have started functioning.Government to set up 16 Central Universities in each of the hitherto uncovered states; three IITs in Andhra Pradesh, Bihar and Rajasthan; two IISERs at Bhopal and Tiruvananthapuram; and two Schools of Planning and Architecture at Bhopal and Vijayawada: Rs. 5 crore grant provided to Deccan College, Postgraduate and Research Institute, Pune.
  
  
• Science and Technology: Rs.85 crore allocated for Innovation in Science Pursuit for Inspired Research (INSPIRE); which will include scholarships for young learners (10-17 years), scholarships for continuing science education (17-22 years) and opportunities for research careers (22-32 years); Rs. 100 crore provided for establishing the National Knowledge Network.
  
  
• Health Sector: Rs.16,534 crore allocated, for the sector marking an increase of 15% over 2007-08. National Rural Health Mission (NRHM): 462,000 Associated Social Health
  
  
• Activitists have been trained, 177,924 villages have sanitation committees functional and 323 district Hospitals have been taken up for upgradation. Allocation to NRHM has been increased to Rs. 12,050 crore.
  
  
• HIV/AIDS: The National Aids Control Programme provided Rs.993 crore.
  
  
• Polio: Drive to eradicate polio continues with revised strategy and focus on the high risk districts in Uttar Pradesh and Bihar. Rs. 1,042 crore allocated in 2008-09. Rashtriya Swasthya Bima Yojana : Rashtriya Swasthya Bima Yojana to provide health cover of Rs.30,000 for every worker in the unorganised sector falling under the BPL category and his/her family. The Yojana will be launched in Delhi and in the States of Haryana and Rajasthan on April 1, 2008. Rs.205 crore provided as the Centre's share of the premia in 2008-09.
  
  
• National Programme for the Elderly: National Programme for the Elderly to be started in 2008-09 with a Plan outlay of Rs.400 crore. Two National Institutes of Ageing, eight regional centres, and a department for geriatric medical care in one medical college/tertiary level hospital in each State to be established during the Eleventh Plan period.
  
  
• Integrated Child Development Services (ICDS): Allocation for ICDS enhanced from Rs.5,293 crore in 2007-08 to Rs.6,300 crore in 2008-09; Remuneration of Anganwadi workers being increased from Rs.1,000 per month to Rs.1,500 per month; remuneration of Anganwadi Helpers increased from Rs.500 per month to Rs.750 per month; over 18 lakh Anganwadi workers and helpers to benefit; 5,959 ICDS projects and 932,000 Anganwadi and mini-Anganwadi centres functional under ICDS at the end of December 2007.
  

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 Regionto 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 Corporation (IWRFC) proposed to be set up with initial capital of Rs.100 crore contributed by the Central Government, to fund long-gestation major and medium irrigation projects.
  
  
• National Horticulture Mission (NHM): NHM covering 340 districts in 18 States and two Union Territories, provided Rs.1,100 crore in 2008-09.
  
  
• Soil testing: 500 soil testing laboratories to be set up during the Eleventh Plan with Government assistance of Rs.30 lakh per laboratory; one-time allocation of Rs.75 crore to the Ministry of Agriculture in order to provide one fully-fitted mobile soil testing laboratory each to 250 districts of the country.
  
  
• Plantation Crops: Special Purpose Tea Fund for re-plantation and rejuvenation to be provided Rs.40 crore in 2008-09; similar support to cardamom, rubber and coffee; crop insurance scheme for tea, rubber, tobacco, chilli, ginger, turmeric, pepper and cardamom to be introduced.
  
  
• National Plant Protection Training Institute at Hyderabad to be converted and upgraded into an autonomous National Institute of Plant Health Management.
  
  
• Crop Insurance: National Agriculture Insurance Scheme (NAIS) to be continued in its present form for Kharif and Rabi 2008-09. Rs.644 crore provided for the scheme.
  
  
• Weather Based Crop Insurance Scheme implemented as a pilot scheme in selected areas of five States to be continued; Rs.50 crore provided for this purpose in 2008-09.
  
  
• Subsidy for Fertilizers: Government to continue to provide fertilisers to farmers at subsidized prices; Proposals to move to a nutrient based subsidy regime and alternative methods of delivery being examined.
  
  
• Cooperative Credit Structure: Prof. Vaidyanathan Committee's report on reviving the short-term cooperative credit structure under implementation in 17 states. Rs. 1185 crore has been released so far by the Central Government to four States. Central Government and State Government have reached an agreement to implement the report on reviving the long term cooperative credit structure. Central Government’s share will be Rs. 2,642 crore or 86 per cent of the total burden.
  
  
• Scheme of Debt Waiver and Debt Relief for farmers: " Scheme to cover all loans disbursed by scheduled commercial banks, regional rural banks and cooperative credit institutions up to March 31, 2007 and overdue as on December 31, 2007 are covered under the scheme;
  
  
• " Complete waiver of all loans that were overdue on December 31, 2007 and which remained unpaid until February 29, 2008 for marginal farmers and small farmers; " one time settlement (OTS) scheme in respect of other farmers for all loans that were overdue on December 31, 2007 and which remained unpaid until February 29, 2008; Rebate of 25 per cent against payment of the balance of 75 per cent under OTS;

" Agricultural loans restructured and rescheduled by banks in 2004 and 2006 hrough special packages also eligible, either for a waiver or an OTS on the same pattern;" Implementation of the debt waiver and debt relief scheme to be completed by June 30, 2008; Farmers availing the relief would be entitled to fresh agricultural loans from banks in accordance with normal rules.

" About 3 crore small and marginal farmers and about one crore other farmers to benefit from the scheme; Total value of overdue loans being waived estimated at Rs.50,000 crore and the OTS relief estimated at Rs.10,000 crore.

Investment, Infrastructure, Industry and Trade

• Saving rate and investment rate estimated to be 35.6 per cent and 36.3 per cent, respectively, by the end of 2007-08; between April- December 2007-2008. FDI amounted to US$ 12.7 billion and FII to US$ 18 billion.
  
  
• Support to Central Public Sector Enterprises (CPSEs): Government to provide Rs.16,436 crore as equity support and Rs.3,003 crore as loans to CPSEs in 2008- 09; 44 CPSEs listed as on date; Government policy is to list more CPSEs in order to unlock their true value and improve corporate governance.

Rural Infrastructure Development Fund

• Corpus of RIDF-XIV to be raised in 2008-09 to Rs.14,000 crore, with a separate window for rural roads.

Manufacturing Sector

• Growth in capital goods still very high at 20.2 per cent. Goal to take manufacturing growth rate to double digit through more reforms.

Power

• Against Eleventh Plan target for additional power generation capacity of 78,577 MW Commercial Operation Date (COD) on about 10,000 MW to be achieved by end March 2008.
  
  
• Ultra Mega Power Project (UMPP): Fourth UMPP at Tilaiya to be awarded shortly; Chhattisgarh, Karnataka, Maharashtra, Orissa and Tamilnadu urged to bring five more UMPPs to the bidding stage by extending the required support.
  
  
• Rajiv Gandhi Grameen Vidyutikaran Yojana to be continued during the Eleventh Plan period with a capital subsidy of Rs.28,000 crore; allocation of Rs.5,500 crore for 2008-09.
  
  
• Accelerated Power Development and Reforms Project: Rs.800 crore to be provided in 2008-09, A National Fund for transmission and distribution reform to be created.

Roads

• National Highway Development Programme (NHDP): Allocation for NHDP enhanced to Rs.12,966 crore in 2008-09 from Rs.10,867 crore in 2007-08; Completion rate in the Golden Quadrilateral is 96.48 per cent and in the North South, East West Corridor project is 23.36 per cent; Special attention being paid to SARDP-NE; programme devised for the North Eastern region; 180 kms of roads completed in 2007-08 and 300 kms. of road targetted for completion in 2008-09.

Oil and Gas

• Seventh round of bidding under the New Exploration Licensing Policy; bids invited for 57 exploration blocks; estimated to attract investment of the order of US$3.5 billion to US$8 billion for exploration and discovery.

Coal

• 53 coal blocks with reserves of 13,842 million tonnes allotted during April-January 2007-08 to Government and private sector companies; new Coal Distribution Policy notified in October 2007; coal regulator to be appointed.

Information Technology

• Allocation to the Department of Information Technology enhanced to Rs.1,680 crore in 2008-09 from Rs.1,500 crore in 2007-08; Two Schemes for establishing 100,000 broadband internet-enabled Common Service Centres in rural areas and State Wide Area Networks (SWAN) with Central assistance under implementation; new scheme for State Data Centres also approved; Rs.75 crore provided for the common service centres; Rs.450 crore provided for SWAN and Rs.275 crore for the State Data Centres

Textiles

• Schemes for Integrated Textile Parks (SITP) and the Technology Upgradation Fund (TUF) to be continued in the Eleventh Plan period; Provision for SITP being maintained at Rs.450 crore in 2008-09; Provision for TUF to be increased to Rs.1,090 crore in 2008-09 from Rs.911 crore in 2007-08.
  
  
• Handloom sector: 250 clusters being developed and 443 yarn banks established under the cluster approach to the development of the handloom sector; Over 17 lakh families of weavers to be covered under the health insurance scheme by March 2008; Allocation being increased to Rs.340 crore in 2008-09; Infrastructure and production being scaled up by taking up six centres for development as megaclusters; Varanasi and Sibsagar to be taken up for handlooms, Bhiwandi and Erode for powerlooms, and Narsapur and Moradabad for handicrafts; Each mega-cluster to require about Rs.70 crore; Initial provision of Rs.100 crore made in 2008-09.