Pranab earmarks Rs 1,37,674 crore for social sector - India News and Travel Times Provides India-centric and other News and Features

Union Finance Minister Pranab Mukherjee, Friday increased the spending on social sector to Rs.1,37,674 crore. Presenting the annual Budget in the Lok Sabha, Mukherjee said the spending on social sector has been gradually increased to Rs.1,37,674 crore and now stands at 37 per cent of the total plan outlay in 2010-11. "Another 25 per cent of the plan allocations are devoted to the development of rural infrastructure," he added. Mukherjee, further said that with growth and the opportunities that it generates, the Government hopes to further strengthen the process of inclusive development. Mukherjee has stated that to reach the benefits of banking services to the 'Aam Aadmi', the Reserve Bank of India had set up a High Level Committee on the Lead Bank Scheme. "After careful assessment of the recommendations of this Committee, and in further consultation with the RBI, it has been decided to provide appropriate Banking facilities to habitations having population in excess of 2000 by March, 2012," he said. The Budget also proposed to extend insurance and other services to the targeted beneficiaries. These services will be provided using the Business Correspondent and other models with appropriate technology back up. By this arrangement, it is proposed to cover 60,000 habitations. In 2007-08 the Government had set up a Financial Inclusion Fund (FIF) and a Financial Inclusion Technology Fund (FITF) in the National Bank for Agriculture and Rural Development (NABARD) to reach banking services to the unbanked areas. To give momentum to the pace of financial inclusion, the Finance Minister has proposed an augmentation of Rs. 100 crore for each of these funds, which shall be contributed by Government of India, Reserve bank of India (RBI) and NABARD.