Finance and India's Development

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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 ` 12,000 crore from ` 10,000 crore

  • A separate window for rural roads will continue, with a corpus of ` 4,000 crore

  • The National Agricultural Insurance Scheme of India to continue with an allocation of ` 500 crore

  • ` 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 ` 17,253 crore to ` 22,452 crore

  • The budget has also allotted ` 12,000 to the National Rural Employment Guarantee Scheme

  • Amount of ` 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 ` 1,200 crore to ` 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 ` 16,979 crore. Of this, around ` 12,400 crore will be spent on water-related schemes

  • NABARD will issue government-guaranteed rural bonds to the extent of ` 5,000 crore with suitable tax exemptions

  • A 31% hike in allocation towards the Bharat Nirman Programme for upgrading rural infrastructure, from ` 18,696 crore to ` 24,603 crore, and a proposed ` 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 ` 9, 945 crore

  • Farm credit target of ` 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 ` 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 ` 96, 000 crore

  • IT allocation for e-governance to increased from ` 395 crore to ` 719 crore

  • Provision for tourist infrastructure increased to ` 423 crore

  • Provision for national highway development programme to be increased to ` 9, 945 crore

  • SMEs witnessed an increase in outstanding credit from ` 135, 200 crore to ` 173, 460 crore