Social and economic welfare, poverty alleviation and Public sector

28 Feb 2006


Bharat Nirman

  • Rs944.18 crore released so far as grant under AIBP.
  • Target of 600,000 hectares of irrigation potential expected to be created this year.
  • Accelerated Rural Water Supply Project: 47,546 habitations covered until January 2006, against target of 56,270 habitations.
  • 5,337 habitations connected under rural roads programme by September, 2005. Rs3,749 crore released so far.
  • 870,000 rural houses constructed. Rs2,260 crore released till January, 2006.
  • Rs1,100 crore released for rural electrification, target of 10,366 villages expected to be achieved.
  • 17,182 villages provided with a telephone till December 2005.
  • Rs18,696 crore to be provided in 2006-07 for the programme, against Rs12,160 crore in current year, an increase of 54 per cent.

Public sector investments

  • Government to provide equity support of Rs16,901 crore and loans of Rs2,789 crore to central PSEs (including Railways).
  • Infusion of Rs1,180 crore in cash and non-cash sacrifices of Rs2566 crore in last two years to restructure ten PSEs, including Indian Telephone Industries Limited and Heavy Engineering Corporation Limited.
  • Expert body to be constituted o develop India as a hub for gems and jewellery.

Flagship programmes Allocation for eight flagship programmes increased by 43.2 per cent, from Rs34,927 crore in 2005-06 to Rs50,015 crore.

North Eastern Region (NER)

  • 10 per cent of the plan budget of each ministry / department to be allocated for NER.
  • Allocation of Rs4,870 crore in 2006-07 for flagship programmes.
  • Total allocation for NER is Rs12,041 crore.

Sarva Shiksha Abhiyan

  • 93 per cent of children in age group 6-14 years are in school. Number of children not in school down to about one crore.
  • Outlay to increase from Rs7,156 crore to Rs10,041 crore in 2006-07.
  • 500,000 additional classrooms to be constructed and 150,000 more teachers to be appointed. Rs8,746 crore transferred to the Prarambhik Siksha Kosh from revenues through education cess.

Mid-day Meal Scheme

  • 12 crore children now covered.
  • Allocation to be enhanced from Rs3,010 crore to Rs4,813 crore.

Drinking Water and Sanitation

  • 56,270 habitations and 140,000 schools to be covered in the current year.
  • Non-recurring assistance of Rs213 crore to be provided in 2006-07 for setting up district-level water testing laboratories and field-level water testing kits.
  • Provision for Rajiv Gandhi National Drinking Water Mission to be increased from Rs3,645 crore to Rs4,680 crore and for Rural Sanitation Campaign from Rs630 crore to Rs720 crore.

National Rural Health Mission

  • More than 200,000 Associated Social Health Activists (ASHA) to be fully functional.
  • Over 1,000 block level community health centres to provide round-the-clock services.
  • Allocation increased from Rs6,553 to Rs8,207 crore.

Integrated Child Development Services

  • Additional 188,168 centres created.
  • Centre assisting states to the extent of 50 per cent of the actual expenditure incurred for supplementary nutrition or 50 per cent of the cost norms, whichever is less.
  • Cost estimated at Rs1,500 crore. This assistance to increase to Rs1,700 crore.
  • Total allocation for ICDS increased from Rs3,315 crore to Rs4,087 crore.

National Rural Employment Guarantee Scheme

  • Allocation of Rs14,300 crore for rural employment in 2006-07, with Rs11,300 crore under NREG Act and Rs3,000 crore under SGRY.
  • More funds to be provided according to need.

Jawaharlal Nehru National Urban Renewal Mission

  • Estimated outlay of Rs6,250 crore for 2006-07, with grant of Rs4,595 crore.
  • Government to promote establishment of new towns, preferably focussed on a specific industry, for example Information Technology, or a specific theme, for example education or health.

National Social Assistance Programme

  • Old age pension to destitutes above the age of 65 years to increase from Rs75 per month to Rs200 per month.
  • Rs1,430 crore provided for 2006-07.
  • State governments urged to make an equal contribution.
  • A system to be established, within two years, for pension to be credited directly to the account of the beneficiary in a post office or a bank.

Women and Children

  • Gender sensitivities of budgetary allocations highlighted through an enlarged statement on gender budgeting to include schemes where 100 per cent of the allocation is for the benefit of women, as well as schemes where at least 30 per cent of the allocation is targeted towards women.
  • Statement covers 24 demands for grants in 18 ministries / departments and five union territories, and schemes with an outlay of Rs28,737 crore.
  • 32 ministries and departments have set up gender budgeting cells.

Scheduled Castes and Scheduled Tribes

  • A statement on schemes for welfare and development of SCs and STs included in budget.
  • Allocations for schemes benefiting only SCs and STs enhanced by 14.5 per cent to Rs2,902 crore, and for schemes with at least 20 per cent allocation for SCs and STs enhanced by 13.9 per cent to Rs9,690 crore.
  • Equity contribution to the National SC Finance and Development Corporation increased to Rs37 crore and to the National Safai Karamchari Finance and Development Corporation to Rs80 crore.


  • Corpus of Maulana Azad Educational Foundation to be doubled to Rs200 crore.
  • Rs16.47 crore to be contributed to strengthen the equity base of the National Minorities Development and Finance Corporation.
  • Corporation to intensify efforts to reach to artisans and weavers in urban and peri-urban centres, especially in districts with concentration of minorities.
  • Programme to focus on skill enhancement, credit and techno-managerial support.
  • Allocation to National Council for Promotion of Urdu Language increased from Rs10 crore to Rs13 crore.
  • Government to finance 20,000 merit-cum-means based scholarships to encourage students to pursue higher studies.

Kasturba Gandhi Balika Vidyalaya Scheme

  • 1,000 new residential schools for girls from SC, ST, OBC and minority communities to be opened in 2006-07.
  • Rs128 crore provided and an additional sum of Rs172 crore to be provided during the year, as a further incentive to the girl child who passes the Std VIII examination and enrolls in a secondary school. A sum of Rs3,000 to be deposited in her name, to be withdrawn by her on reaching 18 years of age.

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