The emphasis on agriculture, farm welfare and rural sector, as evident from the increase in allocations to both capital creation and welfare schemes, is welcome.
The allocation of Rs 17,000 crore to irrigation and the fast-tracking of rural development projects will reduce dependence on monsoon in the long term. Besides, the allocation of Rs 38,500 crore for NREGA will reduce short-term rural distress in light of deficient rainfall and drought situation in the last two years. The move towards the smooth resolution of disputes and contract renegotiations for Public-Private Partnership (PPP) projects indicates that the PPP regulatory regime in India is maturing.
One was expecting a greater allocation for recapitalisation of public sector banks. Overall, Budget 2016-17 balances long-term vision and short-term stimulus measures, which the Indian economy so desperately needs in the current global environment.