Budget, policies, legislation
and programmes
The government has the declared mission
of ‘wiping the tear from every eye’ of the
poor population in the country. It also
promised maximum governance through
corruption-free government and leakage-
proof processes for delivery of development
services and benefits to people. Over the last
15 months, government has taken several
actions in line with its promise. The gov-
ernment recognises challenges arising from
limited fiscal space, business environment
and volatility in global finance and trade. A
possibility of oil price hike and continuing
deterioration in global trade environment
are potential threats. In agriculture spe-
cifically, the government recognised the
declining capital formation rates and the
deteriorating terms of trade as problems to
be addressed. Amidst the challenges, there
are also opportunities offered by the young
workforce, a start-up culture that thrives on
information and communication technol-
ogy (ICT), a strong domestic market and a
promise of good governance. The govern-
ment is not only planning the future in
economic terms alone but also doing it in
many other ways as reflected in the Swachh
Bharat Abhiyan (clean India), Digital India
(to make government services available
electronically), Shramev Jayate (dignity of
labour) and Beti Bachao, Beti Padhao (save
girl child, educate girl child) campaigns.
There are signs of easing the regulatory
barriers for entry and operation of business.
The policies and programmes of the govern-
ment have to be seen in the context of new
hope tempered with an understanding of
the challenges.
Union budget 2015–16
In a bid to improve the macro situation, the
government formulated a budget
1
with the
key strategy of promoting cooperative fed-
eralism under which the state governments
would be provided more of public revenue
resources so that they could decide on the
priorities of development in their respec-
tive areas. The Budget seeks to improve the
operating environment for agriculture and
also create greater opportunities for self and
wage employment for those not engaged in
agriculture. The government has a very clear
vision of where in the long run it would like
the country to move to. In the Budget, the
FinanceMinister has talked about a vision to
be realised by 2022. This vision—outlined in
theUnion Budget 2015 (Box 2.1)—envisages
access to education, health, electricity and
connectivity, both physical and electronic,
as well as jobs. The Budget seeks to improve
agricultural productivity and incomes and
charges industries with creation of jobs,
skilling of youth being the responsibility of
the State. The resources required to realise
Policy and Financing
Framework for Livelihoods
Chapter
2
1
This was the first full budget of this government.
The last budget was for a part of the year and prepared
in great haste.
