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It's raining sops as govt gears up for 2019 polls

Centre announces bounties, despite weakening Rupee

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Undeterred by the falling markets and weakening Rupee, the Centre has announced welfare schemes worth Rs 1,67,681.20 crore since July.

Although the schemes are aimed at farmers, government and semi-government employees, education sector and people from lower economic strata, the announcements come at a time when there is buzz of the 2019 polls.

As the elections draw closer, government sources said, there is more in the pipeline that includes an announcement to transform blackboards to digital boards in all government schools and setting up of at least one medical college within three parliamentary constituencies.

As part of farmer centric initiative, who form a large chunk of voters, the Union Cabinet, which met here on Wednesday under Prime Minister Narendra Modi approved a new Rs 15,550 crore umbrella scheme 'Pradhan Mantri Annadata Aay SanraksHan Abhiyan' (PM-AASHA) to ensure remunerative prices to the farmers for their produce. It will involve Price Support Scheme (PSS), Price Deficiency Payment Scheme (PDPS) and pilot of Private Procurement & Stockist Scheme (PDPS).

Earlier, in July, the government had increased the MSP of Kharif crops by following the principle of 1.5 times the cost of production.

According to the Cabinet note, the PM-AASHA along with increase in MSP will translate into increasing farmer's income by way of robust procurement mechanism in coordination with the state governments. It was decided to allow participation of private sector in procurement.

On a pilot basis, states have been given option to procure oilseeds through private parties. Against the total procurement worth Rs 3500 crore between 2010 and 2014, the Cabinet note claimed that it has risen 10 times to Rs 34,000 crore.

In another such initiative, the Cabinet also revised the price of ethanol derived from heavy B-molasses/partial sugarcane juice Rs 52.43 per litre from Rs 47.13 per litre. It is believed that thde decision will help reduce sugarcane farmers' arrears. The surplus sugar production has been affecting sugar price.

Recently, Union Minister Ravi Shankar Prasad refused any duty cut to lower fuel prices. He highlighted that the government required expenditure on a number of welfare schemes.

The government is showing that the revenue it is earning from taxes on petroleum products is being used for "pro-poor" measures. He said the government is spending over Rs 1.62 lakh crore on subsidised food. He cited the government target of lifting over five crore people from extreme poverty, which requires money.

Last week, the Union Cabinet had approved the continuation of National Mission for Financial Inclusion - Pradhan Mantri JanDhan Yojana (PMJDY) to enable all adults/households to have at least a basic bank account with access to other financial services, social security schemes and overdraft upto Rs 10,000. Nearly, 32.41 crore Jan Dhan accounts have been opened with more than Rs 81,200 crore of deposit balance. It has been decided to focus on opening accounts from "every household to every adult".

An additional instalment of Dearness Allowance (DA) to 48 lakh Central government employees and Dearness Relief (DR) to 62,03 lakh pensioners and also doubling the monthly income of 24 lakh accredited social health activists (Ashas) and Anganwadi workers will cost the exchequer Rs 9112.20 crore annually. The government also revised scholarship schemes extended to OBC students to pursue higher education worth Rs 3,085 crore. The scheme is expected to enable 40 lakh OBC students to pursue higher study after class 10 every year.

Other schemes involved continuation of Pradhan Mantri Gram Sadak Yojana (PMGSY) to connect 38,412 habitations with a population of 500 persons at an estimated cost of Rs 84,934 crore. The Centre also expanded the scope of Higher Education Financing Agency (HEFA) by providing a capital base to Rs 10,000 crore and tasking it to mobilise Rs 1,00,000 crore for revitalising infrastructure and systems in education sector.

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