Finance and India's Development

The Commission of Finance and India's Development are inter woven for the success of the Ministry of Finance, Government of India. The Indian Finance Commission was established as per the drafted provisions of the Acts and Rules in the year 1951. The Finance commissioner and the four other members of the Finance Commission of India, forms the main operating body of the commission. The Finance Commission of India is being vested with responsibility of working closely with the Ministry of Finance, Government of India and work towards the financial goal of India.

Further, the commission also assesses and recommends financial assistance to different states of India according to their requirements and contribution made by them towar5ds the gross domestic products (GDP) of India. Thus, the Finance and India's Development are very much dependent on the successful operation of the Finance Commission of India.

The latest snapshots from the commission of Finance and India's Development:

Gross domestic capital formation in 2005-06 grew by 23.7%; in April- January, foreign direct investment amounted to US$12.5 billion and outpaced portfolio investment of US$6.8 billion
The budget for the Rural Infrastructure Development Fund, raised to Rs 12,000 crore from Rs 10,000 crore
A separate window for rural roads will continue, with a corpus of Rs 4,000 crore
The National Agricultural Insurance Scheme of India to continue with an allocation of Rs 500 crore
Rs 1,800 crore has been allocated for a water recharging scheme that will offer a 100% subsidy to small Indian farmers and 50% to other farmers to encourage them to recharge water
The amount of fertilizer subsidy has been increased from Rs 17,253 crore to Rs 22,452 crore
The budget has also allotted Rs 12,000 to the National Rural Employment Guarantee Scheme
Amount of Rs 2,800 crore has been allocated for the Sampoorna Gramin Rozgar Yojana. Allocation for promoting self -employment among the rural poor, has been increased from Rs 1,200 crore to Rs 1,800 crore
A special plan is being implemented over a period of three years in 31 suicide-prone districts in four states, involving a total amount of Rs 16,979 crore. Of this, around Rs 12,400 crore will be spent on water-related schemes
NABARD will issue government-guaranteed rural bonds to the extent of Rs 5,000 crore with suitable tax exemptions
A 31% hike in allocation towards the Bharat Nirman Programme for upgrading rural infrastructure, from Rs 18,696 crore to Rs 24,603 crore, and a proposed Rs 225,000 crore for farm credit
The foreign direct investment in the India market amounted to US$12.5 billion and surpassed portfolio investment of US$ 6.8 billion
Foreign trade and merchandise exports expected to cross US$125 billion by the end of the current fiscal
Provision for national highway development programme to be increased to Rs.9, 945 crore
Farm credit target of Rs.225, 000 crore for 2007-08 has been set with an addition of 50 lakh new farmers to the banking system
35 projects have been completed in 2006-07 and additional irrigation potential of 900,000 hectares to be created and training of farmers arranged
Central Public Sector Enterprises to invest Rs.165, 053 crore in 2007-08
Bank's differential rate of interest scheme providing finance at the rate of 4% to weaker sections
Defense expenditure allocation to increased to Rs.96, 000 crore
IT allocation for e-governance to increased from Rs.395 crore to Rs.719 crore
Provision for tourist infrastructure increased to Rs.423 crore
Provision for national highway development programme to be increased to Rs.9, 945 crore
SMEs witnessed an increase in outstanding credit from Rs.135, 200 crore to Rs.173, 460 crore