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LATEST NEWS UPDATES | Budget 2016: At the time of deepening distress, govt's rural push may not be adequate -Nilachala Acharya

Budget 2016: At the time of deepening distress, govt's rural push may not be adequate -Nilachala Acharya

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published Published on Mar 7, 2016   modified Modified on Mar 7, 2016
-FirstPost.com

The preliminary reactions of many people after the Budget presentation gave the impression that farm sector got a boost in terms of a significant increase in budget outlays for the sector. But a closer look reveals that behind this apparent increase is the accounting adjustment of funds for interest subvention, earlier reported under the Ministry of Finance, now shown under the Ministry of Agriculture.

In 2014-15, actual spending by the Department of Agriculture, Cooperation and Farmers’ Welfare was Rs 19,255 crore, which is projected to be Rs 20,984 crore, excluding allocation for interest subvention, in the current budget. On the face of it, allocation for the crop insurance scheme, Pradhan Mantri Fasal Bima Yojana has seen an increase from Rs 2,598 crore in 2014-15 actuals to Rs 5,500 crore. But this is accompanied by cuts in Rashtriya Krishi Vikas Yojana (RKVY) from Rs 8,446 crore in 2014-15 to Rs 5,400 crore,and in Krishi Unnati Yojana from Rs 9,823 crore in 2014-15 to Rs 7,580 crore.

There are other things too we need to know about. While pulse production in the country got renewed focus, Krishi Unnati Yojana witnessed decreased allocation under National Food Security Mission (NFSM) from Rs 1,873 crore to Rs 1,706 crore. Moreover, funding of Rs 500 crore as incentive for enhancement in pulses production under the National Food Security Mission which will cover 622 districts is nothing but reprioritisation of Budgetary allocation within different missions of NFSM, and in absolute terms,spending for the mission got reduced to the tune of Rs 167 crore.

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FirstPost.com, 4 March, 2016, http://www.firstpost.com/business/budget-2016-at-the-time-of-deepening-distress-govts-rural-push-may-not-be-adequate-2656902.html


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