Budget-Highlights_2011-12

Shadow Budget 2011-12
Presented by Yashwant Sinha and Uday Singh | AGRICULTURE 1
KEY FEATURES OF BUDGET 2011-12

CHALLENGES
 To maintain a GDP growth rate of 9 percent and upwards
 To make development more inclusive
 To reform the fund absorption framework to set the stage for a double digit growth
 To improve transparency and accountability in government systems at various levels
EXPENDITURE
CURRENT FUND ABSORPTION SCENARIO
 Presently, 12 major schemes consume over 35% of the Central Plan Outlay while the remaining
44% of budgetary support is fragmented over 200 Central Sector Schemes Comprise in social
and affiliated sectors – Education, Health, Housing, Social Welfare, Women and Child Welfare,
SC/ST Welfare , Rural Development and Agriculture.
 Multiplicity of Schemes leads to
o poor accountability,
o weak monitoring and evaluation,
o incompatibility of scheme design with local conditions across States, and
o misalignment of incentives of the administrative machinery
o Ad-hocism in transfers with political relationships between the Center and State
Governments implicitly playing a large in role results in inequitable horizontal
distribution of development outlays
 Finally, allocation of funds for minor schemes comes at the opportunity cost of the major
schemes such as MGNREGS, ICDS, SSA, and NRHM. Currently, these schemes require sharing
between the Centres and States in ratios ranging from 90:10 to 65:35. The financial burden of
expanding the field staff for effective implementation falls on State Governments. Many of the
State Governments with poor fiscal capacities are not in a position to bear this additional
burden. Consequently, all these programs are plagued by varying degrees of staff shortages.
Center for Budget and Governance Accountability (CBGA) notes the following nationwide
vacancies of sanctioned posts in the 4 major programs:

o In ICDS, 16% of helpers positions and 22% of workers positions are vacant nationwide
o In NRHM, at the primary health center level, 16% of doctors are yet to be appointed
while 38% of the ASHAs have not received the stipulated 5 module training
o In SSA, 19% of the sanctioned teacher posts – the most critical element in the public
education program – are vacant
o In MGNREGS, 34% of the sanctioned posts for engineers or technical assistants who
assist in preparing plans for civil works are vacant; 28% of accountants and 23% of
computer assistants are also vacant.
 These vacancies impair the absorptive capacity of outlays leading to unsatisfactory outcomes. It
is imperative that the financial burden of expanding staff be borne by the Union Government.
New Framework for Allocations from Consolidated Fund of India
Consolidated Fund of India
Alternate Framework for Absorption
Under the proposed framework, Central Government will focus on 19 Flagship Schemes in the
spatially partitionble sectors with residual outlays devolved to States through formula based
mechanism
Institutional Mechanism for Allocation
• In the non spatially partitionable sectors (Energy, Infrastructure,
Environment and Forests, Science and Technology, Transport,
Industries and Minerals, Railways, and Other General and
Economic Services), outlays will be budgeted to respective
Ministries in line with the 5 Year Plan sectoral allocations
• Central Government will finance, monitor and implement (in
close co-ordination with sub-district level entities) 19 flagship
schemes in the spatially partitionable sectors
• Rs.1,52,888 Crores to be devolved to States under NCA through
appropriate horizontal distribution formula
• Rs. 51,000 Crores of statutory FC Transfers (Grants – in – aid of
revenues) allocated as percentage of divisible tax pool
revenues
• Rs.10,000 Crores to be devolved to PRIs through a performance
based mechanism
• Automaticity built into allocations for Pensions, Debt Servicing,
and Revenue Expenditure for General Services, Defense
• Allocations for Defense Capital Outlay determined in close
consultation with Defense Services
• Subsidies for merit good – Oil, Food, Fertilizer – based on
prevailing political consensus
1 Does not include Devolution of Central Divisible Pool of Taxes
Expenditure Categories and Allocations in FY12
Total Absorption = INR 13,89,016 Crores 1
25%
12%
36%
Total
11%
16%
100%
Explicit Formula
Based Transfers
to States
Flagship Schemes
in Spatially
Partitionable
Sectors
Allocations for
Non Spatially
Partitionable
Sectors
Food, Fertilizer,
Oil and other
Subsidies
Defence, Police,
Debt, Pensions
4,95,894
1,66,395
1,58,695
3,50,000
2,18,031
Given this context, we propose new framework for allocations from the Consolidated Fund of India to
strengthen fiscal federalism:

 the Central Government will entirely finance 19 major schemes (henceforth, referred to as
flagship schemes) in subject matters that are in State or Concurrent list (Rural Development,
Agriculture, Urban Development, Social Security, Health Care, Education) for Rs.3,50,000 Crores
in FY12
 For subject matters under the Centre or Concurrent list or matters concerning basic and applied
research (Energy, Infrastructure, Environment and Forests, Science and Technology, Transport,
Industries and Minerals, Railways, Higher Education) and Other General and Economic Services),
outlays will be allocated to respective Ministries in line with the 5 Year Plan sector specific
targets – Rs.62,288 Crores
 Remaining outlays of Rs. 2,18,031 Crores will be directly transferred to State Governments
through formula based mechanisms:
o Rs.1,52,888 Crores transferred to State Governments under Normal Central Assistance –
Horizontal distribution determined by appropriate formula that gives weightage to low
fiscal capacities, and higher poverty head count rations
o Rs.10,000 Crores transferred to PRIs through a performance based incentive mechanism
to finance public amenities on a priority basis
o Rs.51,000 Crores to States as grants in aid of revenues as per the terms of the 13th
Finance Commission
Under the proposed alternate framework, Planning Commission’s role will responsible for
 Overall perspective planning and monitoring cum evaluation of the flagship schemes.
 Coordination with the Finance Ministry to determine annual budgetary support for subjects in
the Union list

Role of Planning Commission
Planning Commission’s role confined to perspective planning, and sectoral allocations under 5
year Plans for subjects in the Union List
Total Absorption = INR INR 13,89,016 Crores 1
Explicit Formula
Based Transfers
to States
Flagship Schemes
in Spatially
Partititioable
Sectors
Allocations for
Non Spatially
Partititionable
Sectors
Food, Fertilizer,
Oil and other
Subsidies
Defence, Police,
Debt, Pensions
Sector Ministries
FY12
Rs Crore (%of Total
Expenditure)
Plan Expenditure (Allocations as per XI th 5 Year Plan) 1
Science and Technology Atomic Science and Research,
Biotechnology, Space, Earth
Sciences, Biotechnology
17,440 (1.33%)
Industries and Minerals Textiles, Commerce, Chemicals and
Fertilizers, Heavy Industries and
Public Enterprises, Mines, MSME
9,983 (0.76%)
Energy Coal, Power, Petroleum and Natural
Gas, New and Renewable Energy
1,600 (0.12%)
Transport Railways, Roads, Civil Aviation,
Shipping
11,600(0.89%)
Other General Services Planning, Statistics and
Implementation, Law and Justice,
5,766 (0.44%)
Other Economic Services Communications and Information
Technology, Corporate Affairs, I&B,
Consumer Affairs,
4,600 (0.35%)
Other Social Services Higher Education, Environment and
Forests
11,3000 (1.%)
Total 62,288 (4%)
Non Plan Expenditure 1
Other General Economic ,
Social , Services 1
58,681 (4.5%)
Non Plan Capital 32,890 (2.5)%
UT Expenditures 3,345 (0.26%)
Grants to Foreign Govts 1,776 (0.14%
Total 96,406 (7%)
Total 1,58,695 (11%)
1 Subject to reduced Gross Budgetary Support through Off-Budgetary Financing Mechanisms
Total 100%
16%
25%
11%
123%
36%

Central Government’s role in spatially partitionable sectors limited to 19
Flagship schemes
Consolidated Fund of India
25% of total budgeted expenditure will be allocated for 19 Centrally Sponsored Schemes in
Rural Development, Health Care, Women/Child Health, Agriculture, Irrigation, Social Security,
ICT and the National Highway Development Program
Total Absorption = INR 13,89,016 Crores 1
36%
Total 100%
16%
25%
11%
12%
Explicit Formula
Based Transfers
to States
Flagship Schemes
in Spatially
Partitionable
Sectors
Allocations for
Non Spatially
Partitionable
Sectors
Food, Fertilizer,
Oil and other
Subsidies
Defence, Police,
Debt, Pensions
Employment Gurantee Scheme
Elementary Education
Rural Infrastructure
Health
Social Security
Women and Child Development
Irrigation
Urban Development
ICT
Agriculture
Roads
20%
14%
13%
9%
9%
8%
7%
7%
6%
3%
3%
Rs.3,50,000 Crore
Ministry Schemes
Scheme Thrust
RD MNREGA Unskilled labor jobs
HRD SSA, MDM Universalization of
elementary
education
Health NRHM Provision of Health
Care Services
RD – Rural
Infrastructure
PMGSY, IAY, RGGVY,
National Drinking
Water Scheme,
Rural , Telephony
Improve rural
infrastructure, create
multiplier effect
Roads &
Transport
Capital Outlay for
Roads/Bridges
Expansion of Transport
Infrastructure
Agriculture New Insurance
Scheme,
Extension Services
Scheme, Mall Cum
Mandi Scheme
Boost Productivity
Women, Child
Health
ICDS Nutrition, Education,
Health Care for
Children below 6,
lactating mothers
Social Security NSAP, RSBY Social and Health
Insurance
ICT National E-
Governance
Scheme
Improve Governance,
reduce leakages
Urban
Development
JNNURM Urban Low Income
Housing Boost
 The Central Government will finance only 19 Flagship schemes for Rs. 3,50,000 in the spatially
partitionable sectors of rural development, health and family welfare, urban development,
agriculture, human resource development, women and child care, irrigation, rural
infrastructure, roads, and ICT infrastructure to improve implementation mechanisms.
 In addition to 100% financing, the Centre will intensely monitor and evaluate the schemes
 Fiscal outlays for the 19 Flagship schemes have been budgeted basis enhanced output targets,
inflation adjustment of unit costs, revised intervention norms and greater contribution from the
Centre

Performance Incentive Mechanism for PRIs
Under the terms of the XIIIth Finance Commission, approximately 9,113 Crores will be transferred to
PRIs in FY12 as general basic and general performance grants. Horizontal distribution has been
determined primarily on the basis of population (50% weightage). SC/ST proportion has been used as a
proxy for measuring the level of deprivation in the absence of data.
Source: XIIIth Finance Commission Volume 1 (4)
Given this context, we propose that in FY12 Rs.10,000 crores be transferred to PRIs as per the following
mechanism :
 A nationwide census will be conducted to develop a snapshot of public amenities in all PRIs.
These will include last mile physical connectivity, drinking water availability at household level,
sanitation facilities, local storage facilities for agri-produce, level of electrification, access to
assured irrigation, public health facilities, ICDS facilities, and elementary education facilities.
 Basis this snapshot, a comprehensive deprivation index will be developed to form the basis of
horizontal distribution to PRI bodies.

 The comprehensive deprivation index will also prioritize a list of works that can be taken up by
PRIs for execution after making adjustments to the priority list for projects that will be
eventually taken by through the Central Flagship Schemes or State Government programs.
 Starting in FY12, funds will flow to PRIs on the basis of the deprivation index and prioritized Fund
Flow in the follow on years will be subject to satisfactory completion of projects for which a
comprehensive monitoring and evaluation system financed by the Centre will be put in place.
Thus, PRIs which complete projects satisfactorily will avail more follow on funds thereby
creating an effective performance based incentive system.
AGRICULTURE
In order to control supply driven inflation, the following agricultural interventions are required
 Strengthening the backend and front end of Agricultural supply Chain
o Farmer Mall cum Mandi in every block in PPP mode through a budgetary support Rs
2,682 crores
 Revamping Agri-Extension network and ensuring the last mile reach of good agricultural
practices(GAP) through
o Centralized Online Agricultural video library on GAP will be prepared by central research
institutes
o Farmers Library in all rural districts and Agri-Extension Vans to ensure last mile reach of
GAP
 Assuring irrigation to every field
o Formation of National irrigation authority of India (NIAI) to implement major and
medium irrigation projects on SPV & PPP/BOT mode with an initial support of Rs 18,000
crores
o Pradhanmantri Sianchi Yojna to irrigation medium and minor irrigation projects limited
within the state boundaries with a budgetary support of Rs 14,000 crores
o Paani Panchyat for the micro management of irrigation water and Potable water
 Kisan Credit Card (KCC) to all the Farmers
o Through bank linked Farmers Club
o For the year 2011-12 the target is Rs 4,38,178 crores
 Income linked insurance to individual farmers
o Insurance premium will be equally contributed by central government, state
government and farmer
o For financial year 2011-12 the premium contribution from central government will be Rs
2,059 crores

Presented by Yashwant Sinha and Uday Singh | Project Based Ministries 9
Project Based Ministries
Approximately Rs.37,000 crore of plan expenditure across project based ministries can financed
through off-budgetary market based mechanisms (without compromising underlying public policy goals
) and restructuring of loss making PSUs and other Government controlled service outfits. These are
described below:
Project Based Ministries
Savings through Off-Budget Financing Mechanisms
Budgetary Support can be reduced by Rs.37,000 Crores in project based sectors without
compromising underlying targets by evolving market based financing mechanisms......
* Savings for Projects in Shipping, Textiles, Pharmaceuticals, MSME, IT, Civil Aviation, Commerce, Tertiary Care, Higher Education, Heavy Industries & Public Enterprises,
Off-Budget Mechanisms
80% of Construction value can be financed through PFI Mechanisms
based on transparent, competitive bidding in NHDP Program; Toll
based recovery
Create SPV for Dedicated Freight Corridor, Freight operations
unbundled from IR
Non Core Activities outsourced through franchise model to
increase revenues
Prasar Bharati privatized with GoI stake set at 75%; Transfer
pricing mechanism for use of Prasar Bharat services by GoI
Charge for services provided; Evolve SPVs for specific projects
.....which will allow fiscally sustainable expansion of key social sector programs.
10% reduction from FY11
13,000
5,000
7,000
10,000
22,000
2,000
FY 12 B.E.
Postal Services
133,791
Others*
Railways
I&B
Roads
Normal Increase in FY12
FY11 B.E. 148,791 +15%
Savings
ROADS
 In view of the emergence of a competitive market for construction and maintenance of roads,
80% of the construction activity by value to be financed by Private Finance Initiatives (PFI) – BOT
(toll) and BOT (annuity) based contracting mechanisms
 Competitive bidding process to be undertaken for all construction activity under the National
Highway Development Program. All financial parameters (including level of Government support
for viability gap funding) will be fixed through a transparent and competitive auction based
bidding process
 Projects that fail to get sold through the BoT (Toll) based model will be developed through BoT
(Annuity) based model with financial parameters arrived at through a competitive bidding
process

Presented by Yashwant Sinha and Uday Singh | Comprehensive ICT Project to Improve
Governance
10
 Maintenance of existing highways will also be contracted out under ROMT (Renovate, Operate,
Maintain, and Transfer) model with a fraction of maintenance costs recovered through tolls
 Estimated budgetary savings – Rs. 9700 Crore
INFORMATION & BROADCASTING
 Prasar Bharti to be publicly listed with GoI stake set at 75%
 Prasar Bharti to compete with other broadcasters in the mainstream space. All GoI transactions
to be at competitively determined rates
INDIAN POSTAL SERVICE
 Inefficiencies to be reduced through PPP projects, thereby achieving budgetary savings
 Non-core activities to be outsourced to established private sector players with appropriate
revenue sharing activities
 Core services with a social component to be handled in-house
RAILWAYS
 Development of dedicated freight corridors to be funded through the SPV route, with
investment recouped entirely through freight based revenues in high traffic zones.
 Freight operations to be clubbed under a PSU independent of IR control with division of assets
Savings under Other Economic, General, and Social Services
 Estimated budgetary savings – Rs. 13,000Crore
Comprehensive ICT Project to Improve Governance
Government schemes are plagued by high levels of inefficiency. These include
 suboptimal to under utilization of allocated funds,
 under achievement of output targets,
 poor planning that leads to mismatch between unmet need and allocation,

Presented by Yashwant Sinha and Uday Singh | Comprehensive ICT Project to Improve
Governance
11
 leakages of funds/benefits meant for intended beneficiaries,
 deadweight administrative and transaction costs.
The Government will need to focus on improving efficiency of welfare related expenditure by
embracing technologies, strengthening public accountability systems, and creating outcome linked
incentives/disincentives of agents across the delivery chains. We flag issues and outline an approach to
dramatically improve outcomes over a 3 year period.
The Technology dimension to reduce inefficiencies in welfare schemes must address 4 key issues:
 ICT based solutions to address leakage induced by malpractices connected with the final
transaction point
 Transition to a e-payment platform for schemes involving elements of cash transfers to
beneficiaries
 Development of an integrated MIS/ERP back-bone for major flagship programs
 Electronification and increased automation of payments through various Government based
entities in the delivery chain for schemes involving delivery of an array services (NRHM, SSA,
ICDS)
Accordingly, Rs.15,000 crores has been allocated in FY12 for implementing a national e-governance
project:
Component FY12 Outlay
UID Infrastructure Rs.3,500
Computerization of Post Offices Rs.5000
PoT Authentication at FPS, GP Attendance Rs.2000
Smart Cards for Households Rs.2000
Computerization of Government service centres
in all Gram Panchayats
Rs.3000
Total Rs.20,000
Provision for broad-band infrastructure accounted for under National Rural Telephony Project.

Presented by Yashwant Sinha and Uday Singh | INCLUSIVE DEVELOPMENT 12
INCLUSIVE DEVELOPMENT
KEY FEATURES
 Overall BPL quota to be increased to 42% of the total population, thereby minimizing exclusion
errors
 BPL categorization for rural households must be implemented as per the schema outlined in the
Saxena Committee Report (7) based on the principle of automatic exclusion and inclusion
followed by a grading system to identify the remaining BPL households.
 All identified BPL households to be issued UID linked BPL smartcards to eliminate the problem of
ghost cards
 Universalization of services for
o Primary health care
o Elementary education
o and for meeting nutrition, immunization, and counseling needs of children less than 6
years of age, lactating mothers and pregnant women
 100% central funding for 19 flagship schemes
FOOD SECURITY
 The PDS in its current form has failed to meet its primary objective of providing food security to
the poorest sections of the society. Less than 30% of the subsidized grain reaches the poor
households through the PDS.
 For the 10 Crore poorest households, direct cash transfer is the preferred route. Direct cash
transfers at Rs. 600 per month to cover the poorest 40% of the population (BPL category) to
purchase 35 kgs of foodgrains per month at market rates
 35 kg per household at subsidized rates (Rs.8.3/kg for wheat and Rs.6.1/kg for rice) every month
through the PDS to 6 crore households that are marginally above the poverty line (Vulnerable
Category)
 Total budgetary outlay – Rs. 100,000 Crore (70,000 Crore in direct transfers, 30,000 Crore to
PDS)
SOCIAL SECURITY – PENSION SCHEMES

 Coverage expanded in view of expansion in list of BPL households
 Total budgetary outlay (Old Age pension scheme, National Family Benefit Scheme, National
Widow Pension Scheme, National Disability Pension Scheme, National Maternity Benefit
Scheme) – Rs. 25,000 Crore
WOMEN AND CHILD CARE - ICDS
 Universalization of ICDS services in compliance with Supreme Court Guidelines
o Enhanced Outlays for SNP to for normal and malnourished children in 6 -72 month age
bracket, nursing and lactating mothers, adolescent women
o Enhanced outlays for maintenance costs for Anganwadi Centers including outlays
 100% filling of positions for AWW, AWW helper, CDPO, CDPO Assistant and Supervisor
 BPL as a criterion for eligibility under ICDS will be dropped
 Estimated budgetary outlay – Rs. 25,000 Crore
RURAL DEVELOPMENT – MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME
(MGNREGS)
 Plagued by poor design and poorer implementation. Highly inefficient dole transfer program.
Gram Panchayats have limited ability to plan projects, as a result of which projects exist only on
paper
 40% of the labour budget for MGNREGS to be routed through national rural schemes (Bharat
Nirman programs), and 30% to be routed through State Government projects implemented by
line departments at the district level
 Budgetary Allocaton – Rs. 65,000 Crore
RURAL INFRASTRUCTURE
 Labour for PMGSY, National Drinking Water Scheme, and RGGVY to be routed through
MGNREGS
 RGGVY norms to be redefined as follows:
o Provision of 3 Phase electricity to rural habitations
o Household electrification of BPL household to include 4 connection points to run a
bundle of appliances
 National Drinking Water Scheme to be expanded to provide
o Household water connection with subsidy for BPL household

o Water treatment solutions for Easter States grappling with Arsenic contamination
Scheme Name 2005-2009 Target Unmet Need as of Dec. 2010 Measurable and Monitorable
Targets for FY12
FY12
Budget
Outlay
Dimension: Rural Roads
Pradhan Mantri
Gram Sadak Yojana
(PMGSY)
To construct 1,46,185 kms
of new rural roads, connect
66,802 habitations with all
weather roads
To upgrade and renew
1,94, 132 kms of existing
rural roads
• 2,82,796
unconnected habitations
•~20,000 kms of road needed
for linking unconnected
habitations to core road
network
• 20,000 kms of road
length for connecting habitations
• 5,000 kms of existing
roads to be upgraded
• 5,000 kms of existing
roads to be renewed
5000 GBS
plus.12,000
as NABARD
loan
Dimension: Rural Electrification
Rajiv Gandhi
Grameen
Vidyutkaran Yojana
(RGGVY)
•Electrification of 1,25,000
un-electrified villages
•Free connections to 2.43
Crore BPL Households
•Intensive electrification of
4.62 L electrified villages
•29,973 unelectrified villages
•1,88,465 villages to be
intensely electrified
•1.09 crore BPL HHs without
electricity connections
•~3.5 crore non BPL HHs
without connections
•Electrification of 29,973
unelectrified villages
•47,116 electrified villages to be
intensely electrified
•50L BPL HHs to be given free BPL
connections
4,196
2,073
1,100
Total=
7,369
Dimension: Drinking Water
National Drinking
Water Program
• 1,45,644 quality
affected habitations
• 375 uncovered
habitations
1,45,644 quality affected
habitations
375 uncovered habitations
Water treatment solutions for
remaining 1,45,644 habitations;
Provision of drinking water supply
upto household level
12,000
RURAL TELEPHONY
 11,46,000 kms of optical fibre network to be laid along the road network to connect 374552
rural households to the core network over a 2 year window

 This would incur an incremental cost of RS. 9000 Crore that would be met through MGNREGS
 Bandwidth, upon completion, to be leased to telecom service providers through appropriate
sharing models to create revenue streams and recoup costs
 National agency to be created to build the network in mission mode
HUMAN RESOURCE DEVELOPMENT
Elementary Education
 Focus on improving student learning outcomes and increasing enrollment across the elementary
education cycle – incremental allocations of Rs.5000 crores
 Institutionalization of accountability by setting up school performance management systems –
Rs. 5000 crores
 Compliane with provisons of RTE Act - Rs.30,000 Crores
 Total Budgeted Estimate – Rs.40,000 Crores
RURAL HOUSING
 Cash transfer through IAY inefficient, vulnerable to leakage and doesn’t result in commensurate
creation of assets. Rural Housing implementation methodology to borrow from JNNURM, with a
more proactive role by the government.
 Implementing agencies would be invited to prepare Detailed Project Reports (DPRs).
 The DRDAs would be the nodal agencies that would be in charge of overseeing the selection of
beneficiaries, inviting DPRs from implementing agencies and connecting beneficiaries to housing
finance options. The centre would release funds upon receiving DPRs.
 Standard and modular technologies would be emphasized upon in the guidelines to make the
effort cost-effective.
 Cluster based approaches would be emphasized upon in the guidelines, so that facilities such as
drinking water, internal roads, drainage and cattle sheds could be provided in a cost-effective
fashion.
 Accordingly, Rs.15,000 crores has been allocated in FY12 to build 2.5 million residential units.
Landless BPL households will be given priority in the beneficiary list.
URBAN HOUSING
 25 million households to be provided access to affordable housing over a 10-year period. 2.5
million households to be provided access to affordable housing this year

 Two-pronged approach to urban housing.
o For 20% of 2.5 million households: Rental subsidy of upto Rs. 1000 per month for
households from the lowest economic strata (monthly household income < Rs. 6000)
o For the rest: Households above the lowest economic strata to be provided with
subsidized housing, with the average subsidy per housing unit to be Rs. 1,00,000 (for a
unit costing Rs. 3.5 lakhs)
 Interest subsidy to be maintained at current levels
 Estimated budgetary outlay of Rs. 20,834 Crore (Rs. 434 Crore in rental subsidy, Rs. 400 Crore in
interest subsidy, Rs. 15000 Crore towards JNNURM sub-mission 2, Rs. 5000 Crore towards
JNNURM sub-mission 1)
PRIMARY HEALTH CARE
 Long term vision of bringing spending upto 2-3% of the GDP, hindered because of poor
absorptive capacity
 Emphasis on improving grassroot infrastructure – primarily skilled manpower – to improve
absorptive capacity
 Emphasis on capacity building of rural health workers
 Budgetary outlay of Rs. 40,000 Crore
RASHTRIYA SWASTHIYA BIMA YOJANA
 All BPL families (11 Crore families) to be enrolled under Rashtriya Bima Yojana
 Hike in insurance coverage to Rs. 45,000
 Budgetary outlay of Rs. 3265 Crore
Table 4: Flagship Schemes in Spatially Partitionable Sectors (INR Crore)
Ministry/Sector Scheme FY12
B.E.
Output Targets/New Norms Goals
1. Rural MNREGS 65,000 Inflation adjustment of minimum wage rates; Economic Security for

Development 70% of work to be generated through convergence
with national schemes for rural infrastructure, and
State Government schemes implemented by line
departments;
6.12 crore households to be provided 60 days of work
in FY12
Poor Households
2. Human
Resource
Development
Sarva
Shiksha
Abhiyaan
40,000 Compliance with RTE Act 2009; Increased allocations
for improving quality of education and learning
outcomes
Universalization of
elementary education
3. Health National
Rural
Health
Mission
35,000 Universalization of primary health care to cater to
needs of 60% of the population
Provision of Health Care
Services
4. Rural
Infrastructure
– Roads
Pradhan
Mantri
Gram
Sadak
Yojana
Rs.6000 crore
plus Rs.12,000
crore IEBR as
NABARD loan
20,000 kms of road length for connecting habitations
5,000 kms of existing roads to be upgraded
5,000 kms of existing roads to be renewed
Connecting rural
habitations to main road
network
5. Roads &
Transport
National
Highway
Developme
nt Program
8000Completion of targets under National Highway
Program;
Use of PFI (BOT (toll) and BOT (annuity) to finance
80% of construction activity by value in FY12;
All financial parameters to be determined through
competitive bidding process
National Highways
6. Human
Resource
Development
MidDay
Meal
Scheme
15,000Expansion to cover all students undergoing
elementary education in Government aided schools
Free Meals to children in
public schools
7. Women, Child
Health
ICDS 25,000Univeraslization of ICDS services to cater to needs of
70% of population; BPL as criterion for eligibility
dropped
Nutrition, Education,
Health Care for Children
below 6, lactating
mothers

8. Rural
Infrastructure
– Rural
Housing
Indira
Awaaz
Yojana
15,0002.5 million rural dwelling units to be constructed
through contracts ; DRDAs to be nodal agencies for
implementation;
Unit cost per dwelling revised upwards to Rs.60,000;
Priority for landless BPL beneficiaries;
Subsidized Rural Housing
for BPL
9. Agriculture New
Schemes
12,000New Scheme for Extension Services
New Scheme for creating supply chain infrastructure
– mandis
Enhanced outlays for basic and applied research
Support for Agriculture
10. Rural
Infrastructure
– Power
RGGVY 5,000Electrification of 29,973 unelectrified villages
47,116 electrified villages to be intensely electrified
50L BPL HHs to be given free BPL connections
Redefinition of intense electrification norms
Electrification of rural
habitations
11. Urban
Development
JNNURM 20,834New norms for creating affordable housing stock for
urban poor
Urban Development and
Services for Urban Poor
12. Social Security National
Social
Assistance
Program
30,000Cash transfers to vulnerable sections of society for
old age pensions, life insurance cover, health
insurance, pension of old age widows
Social Security for Poor
Households
13. ICT E-
Governanc
e Scheme
16,500UID Generation, Developing ERP/MIS for flagship
schemes, PoT Authentication at Post Offices and PDS
outlets, Electronification of payments through
Governemnt channels, Computerization and
connectivity of service Centre points
ICT Technologies to
increase efficiency of
welfare schemes
14. Irrigation AIPB,
Pradhan
Mantri
Snchai
18,000Last Mile Irrigation Connectivity, and Support for
Major and Medium Irrigation

Yojana
15. Other
Coordinating
and Research
Activities
10,000
16. Rural
Telephony
New
Scheme
9000Laying of optical fibre network to connect all rural
habitations across India along the core rural road
network

Budget-Highlights_2011-12

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