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LATEST NEWS UPDATES | Agriculture doesn’t get its due in budget - Kedar Vishnu, Ashish Andhale

Agriculture doesn’t get its due in budget - Kedar Vishnu, Ashish Andhale

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published Published on Feb 21, 2023   modified Modified on Feb 21, 2023

Deccan Herald

Many economists expected a massive allocation for the agricultural sector in the budget, especially after the repeal of three farm law bills. 

However, the agricultural sector allocation decreased drastically from Rs 1.33 lakh crore in the Union Budget 2022–23 to Rs 1.25 lakh crore in 2023–24. It received only 3.78 per cent of the total budget share in 2021–22; this was reduced to 3.36 per cent in 2022–23 and further reduced to 2.78 per cent this year. Also, public spending in the agricultural sector has fallen sharply to 4% in 2022–23 (Economic Review, 2023–24). Many economists commended the budget for increasing overall spending by 14.1% compared to the previous budget. However, the share of agricultural sector has decreased by 4.8% compared to last year.

A careful examination of the budget paper also shows that the government has cut the budget for prominent agricultural programmes when farmers face the problems of increasing input costs and not getting remunerated prices. Among all programmes, MGNERGS experienced its most significant decrease of Rs 13,000 crore (17.8% decrease in 2023-2024 from the previous year), followed by the PM-Kisan grant, which declined by Rs 8000 crore (17.8%), and the Rashtriya Krishi Vikas Yojana allocation, which decreased by Rs 3,283 crore (31%). The decrease in funding for the programme mentioned above will significantly reduce farmers’ income and negatively impact agricultural productivity. In addition, rural workers will have difficulty getting job guarantees because of the reduction in the fund for MGNREGS. 

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Kedar Vishnu, Ashish Andhale, Deccan Herald, 19 February, 2023, https://www.deccanherald.com/opinion/panorama/agriculture-doesn-t-get-its-due-in-budget-1192967.html


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