Saturday, December 26, 2009

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Rural Development Budget - Indian Interim Budget 2009, Rural Development Sector

The Indian Government continues to accord highest priority to rural development. A number of programmes have been designed to help improve the living conditions of the rural population. The programs designated under the Indian Interim Budget 2009 are:

(i) The Rural Infrastructure Development Fund (RIDF). The RIDF is the main instrument to channel bank funds for financing rural infrastructure, through State Governments. The corpus of RIDF was increased from Rs.5,500 crore in 2003-04 to Rs.14 thousand crore for the year 2008-09 to ensure greater availability of funds for its activities. A separate window for rural roads was created under RIDF with a corpus of Rs.4 thousand crore for each of the last three years.

(ii) Indira Awaas Yojana (IAY). Given the importance of housing for the weaker sectors of the rural population, 60 lakh houses were to be constructed under the Indira Awaas Yojana by 2008-09. In the period between 2005-06 and December 2008, 60.12 lakh houses have already been constructed.

(iii) Panchayat Empowerment and Accountability Scheme (PEAIS). The PEAIS is an existing scheme under the central sector plan which has been recognized as a powerful instrument to incentivise States to empower the Panchayats and put in place accountability systems to make their functioning transparent and efficient. The Interim Budget acknowledges the need to build in incentives for encouraging States to devolve funds, functions and functionaries and set up an institutional framework for such devolution. The Indian Government has proposed to substantially expand the scheme through State allocations.

(iv) Project Arrow. The Department of Posts has launched “Project Arrow” to revitalize its core operations and to provide new technology enabled services to both rural and urban Indians. So far this has been successfully implemented in 500 post offices in the country. This Project will receive full government support as it will enhance the services offered to India and will also lay the foundation for a vibrant delivery mechanism for many social sector schemes such as Pensions, and the National Rural Employment Guarantee Scheme (NREGS).

The primary components of capital receipts include loans brought up by Government of India from public, termed as market loans. Some of the other components of capital receipts include borrowings by Government from Reserve Bank and loans obtained from foreign governments and bodies.

The primary components of capital payments include capital expenditure on acquisition of assets like equipment, machinery, land and buildings. Capital payments also include transactions in the Public Account and investments in shares.
Budget: A brief look
In a nutshell, the India Budget depicts receipts and expenses along with full details of tax revenues and other receipts. The budget also explains the revenue deficit, gross fiscal deficit and the gross primary deficit of the Central Government.
Agriculture Budget
Since the majority of the Indian population are dependent on Agriculture for their livelihood, the India Budget places an emphasis on agriculture. The main objective is to be self-sufficient in food. India also aims to offer cheaper credit to farmers as part of an ongoing scheme to bring farmers into the banking system.


Agriculture Cooperatives in India national organizations banks

National Cooperative Development Corporation (NCDC)

The National Cooperative Development Corporation(NCDC) was established by an Act of Parliament in 1963 as a statutory Corporation under the Ministry of AgricultureFunctions

National Agricultural Co-operative Marketing Federation of India (NAFED) The objects of the NAFED shall be to organise, promote and develop marketing, processing and storage of agricultural, horticultural and forest produce, distribution of agricultural machinery, implements and other inputs, undertake inter-State, import and export trade, wholesale or retail as the case may be and to act and assist for technical advice in agricultural production for the promotion and the working of its members and cooperative marketing, processing and supply societies in India.



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