While cautioning about the risks of further global slowdown and mounting turbulence, he said this complicates the task of economic management for India. He said the financial years 2015-16 and 2016-17 have been and will be extremely challenging for Government expenditure.

He said the next financial year will cast an additional burden on account of the recommendations of the 7th Central Pay Commission and the implementation of Defence OROP. Stating that the Government has to prioritise its expenditure, Jaitley said the Government wants to enhance expenditure in the farm and rural sector, the social sector, the infrastructure sector and provide for recapitalisation of the banks.

The Finance Minister said the agenda for the next year will be to ‘Transform India' in this direction. He highlighted that the budget proposals are built on this transformative agenda with nine distinct pillars which include: Agriculture and Farmers' Welfare; Rural Sector; Social Sector including Healthcare; Education, Skills and Job Creation; Infrastructure and Investment; Financial Sector Reforms; Governance and Ease of Doing Business; Fiscal Discipline and Tax Reforms.

The Finance Minister announced that the allocation under Pradhan Mantri Gram Sadak Yojana has been increased to Rs. 19,000 crore and it will connect remaining 65,000 eligible habitations by 2019.

The Finance Minister while laying emphasis on skill development said the Government wants to bring entrepreneurship to the doorsteps of youth through Pradhan Mantri Kaushal Vikas Yojana (PMKVY). 1500 Multi Skill Training Institutes will be set up for which Rs. 1700 crore have been set aside.

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