Union Budget 2016-17: FM allots Rs 87765cr for rural, ups MGNREGA fund to Rs 38500cr

Raveena Singhmoneycontrol.comThe Finance Ministry has allotted Rs 87,765 crore for the development of the distressed rural sector and has increased funds for Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to Rs 38,500 crore. In the last Budget session, rural development had got Rs 79,526 crore. Of this, Rs 34,699 crore was fixed for MGNREGA.To boost the rural economy through financial inclusion, the government has broadened its focus from MGNREGA alone to various financial schemes like Jan Dhan Yojana and Micro Units Development Refinance Agency (Mudra) Bank, rural infrastructure development plans and health and educational grants. About Rs 2.87 lakh crore will be given as grants in aid to gram panchayats and municipalities as per the recommendations of the 14th Finance Commission. In a step towards development, government aims to develop 300 rurban clusters under the Shyama Prasad Mukherjee Rurban Mission and has announced 100 percent village electrification by 1st May, 2018.Also, a new Digital Literacy Mission Scheme has been implemented for rural India to cover around 6 crore additional household within the next 3 years.