Tourism Gets 70% Hike in the 2016 Union Budget

by V. Velayudam | March 8, 2016

Focus on Tourism

The Union Budget 2016, which was presented by the Finance Minister, Mr. Arun Jaitley, witnessed 70% increase in the allocation of funds as compared to last year. This has given clear indications that the Government of India wants to launch new themes in tourism and increase the tourism potential of the country in a great way. The allocation of funds in this year’s budget is as follows:

  • Rs.1500crore towards Plan Heads
  • Rs.90crore towards Non-Plan Heads

The two key areas that are to be given focus this year are:

  • Development of Infrastructure
  • Overall improvement of publicity initiatives

During the last year’s Union Budget, only Rs.932crore was allocated to the Tourism Ministry. This year, it is a good Rs.658crore more than last year, which is an increase of 70%.

How will these funds be used this year?

The Tourism Ministry has identified certain some key areas and has allocated sums to these departments, so that it has a target in mind and can work effectively to make improvements in these areas:

  • For tourism promotion activities and for carrying out publicity initiatives in India and abroad, in order to attract more tourists into India– Rs.413crore
  • For training the personnel involved in the tourism sector and for improving their skill set – Rs.160crore
  • For overall development of Infrastructure in the Tourism sector – Rs.913croe; this includes the following:
    1. For Swadesh Darshan Scheme (development of theme based tourist circuits in various areas for improvement of infrastructure) – Rs.700crore
    2. For PRASAD Scheme (National Mission on Pilgrimage Rejuvenation & Spiritual Augmentation Drive) for improving the religious tourism in the country – Rs.100crore

With these sector-based allocations, the Tourism Ministry is expected to scale new heights for this year. Improvement in this sector could mean a lot to the overall improvement of the country’s image in the eyes of foreign countries; hence special focus is being given to the Tourism Sector by the Union Government.

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