Schemes Approved in Budget 2024-25 | 06 Feb 2024

Source: PIB

Why in News?

Recently, the Union cabinet has approved a slew of key economic decisions, including extension of various schemes such as Extension of Subsidised Sugar Scheme among others.

What are the Key Schemes Approved by the Union Government?

• Extension of Subsidised Sugar Scheme:
  • The Cabinet extended the scheme to distribute subsidised sugar to Antyodya Anna Yojana (AAY) families for two more years till 31st March 2026.
  • The Scheme facilitates access to sugar to the poorest of the poor and adds energy to their diet so that their health improves.
  • Under the Scheme, the Central Government gives subsidies of Rs.18.50 per kg per month of sugar to AAY families of participating States.
    • The approval is expected to extend benefits of more than Rs.1850 crore during the period of the 15^th Finance Commission (2020-21 to 2025-26).
  • The Government of India is already giving free ration under Pradhan Mantri Garib Kalyan Anna Yojna (PM-GKAY).
    • Selling 'Bharat Atta,' 'Bharat Dal,' tomatoes, and onions at affordable and fair prices are measures to ensure an adequate food supply for citizens, extending beyond the PM-GKAY program.
  • With this approval, the Government will continue giving subsidies to participating States for the distribution of sugar to AAY families through PDS (Public Distribution System) at the rate of One kg per family per month.
    • States have the responsibility to procure and distribute sugar.
• Continuation of Scheme for Rebate of State and Central Taxes and Levies (RoSCTL) for export of Apparel/Garments:
  • The Cabinet approved the continuation of a scheme granting a rebate on state and central taxes and levies for the export of apparel and garments up to 31st March 2026.
  • The continuation of this scheme for two more years is expected to provide a stable policy regime for long-term trade planning, particularly in the textiles sector.
    • Other textile products not covered under the RoSCTL are eligible to avail benefits under RoDTEP along with other products.
• Extension of Animal Husbandry Infrastructure Development Fund (AHIDF):
  • The Cabinet approved an extension of the AHIDF to be implemented under the Infrastructure Development Fund (IDF) for another three years, up to 2025-26.
  • The scheme aims to incentivize investments in dairy processing, product diversification, meat processing, animal feed plants, and breed multiplication farms.
  • The AHIDF is a scheme aimed to promote and incentivize investments in the animal husbandry sector in India.
    • The Government of India will provide 3% interest subvention for 8 years with a two-year moratorium for loans up to 90% from scheduled banks and other financial institutions.
• Marketing Margin for Supply of Domestic Gas to Fertiliser Units:
  • The Cabinet approved a formula for the determination of marketing margin on the supply of domestic gas to Fertiliser (Urea) units from 1^st May 2009 to 17th November 2015.
  • This approval is a structural reform. Marketing Margin is charged by gas marketing companies from consumers over and above the cost of gas for taking on the additional risk and cost associated with marketing of gas.
    • Government had previously determined the marketing margin on supply of domestic gas to urea and LPG producers in 2015.
  • The approval will provide additional capital to the various Fertilizer (Urea) Units for the component of marketing margins paid by them on domestic gas procured between 2009 to 2015.
  • In line with government vision of AatmaNirbhar Bharat, this approval will incentivize manufacturers to increase investment.
    • The increased investment will lead to self-sufficiency in fertilizers, and provide an element of certainty for future investments in the gas infrastructure sector.