Union Budget 2016-17:Impact Analysis on the Rural Sector

Abstract

The Union Budget 2016-17 has tried to address the issues of low-income, quality of employment and poor farm economy in the rural India. The ongoing program like PMGSY has profound effect on the overall livelihood development in the rural areas. The government has tried its level best to address lower farm productivity by putting emphasis on irrigation. The MGNREGA has an immense social impact. Poor and marginal farmers largely depend on this program for the livelihood. Every year the government introduces many new work areas and now it has focused on asset creation rather than only employment generation. This budget has increased allocation under crop insurance scheme by 95%. The crop insurance penetration is low among farmers due to lack of awareness. The government has to promote it for better penetration. Overall, it is a farmers' friendly budget. The implementation is the key. Whoever so comes into the power, it has to keep up the same trend to reach the objective. The objective is to improve overall livelihood status in rural areas.