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LATEST NEWS UPDATES | Budget, like farm laws, is marred by gap between intentions of government and ground realities of agriculture -Ajay Vir Jakhar

Budget, like farm laws, is marred by gap between intentions of government and ground realities of agriculture -Ajay Vir Jakhar

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published Published on Feb 3, 2021   modified Modified on Feb 3, 2021

-The Indian Express

Investment in human capital, science and research remains the Achilles heel of Indian policy. The budget allocation for agriculture research and education has constantly declined from 0.31 per cent of the gross value added of agriculture and allied activities in 2011-12 to 0.24 per cent now

Seven years of low crude prices, five years of above normal monsoon topped by good agriculture production, and everything looked positive for a strong economic performance. But, the promises made in 2017 of doubling farmers’ income by 2022 for instance, seemed hollow. After every crisis in the recent past, we thought that things could not get worse, but somehow they did. The Economic Survey makes it evident — the ministry of finance didn’t have much of an arsenal to combat the uncertainty. Considering the revenue shortfall due to the pandemic, many might describe the budget as a brave attempt. The Finance Minister was in an unenviable position.

It was heartening to hear the government validating its commitment to MSP procurement, which has expanded across regions and more farmers are benefitting. Allowing the APMCs to tap into the Agriculture Infrastructure Fund is also commendable as the money borrowed to develop mandis will now be eligible for interest subvention. Extending the Operation Green scheme to all perishables is noteworthy and so is starting the Kisan Rail. The budget appears to be more transparent than previous exercises and has projected a three to five-year vision. But policies in India and their implementation lack an active interface between those who frame them and the supposed beneficiaries. This is also evident in the way the contentious farm laws were drafted and enacted. In the words of economists Anne Case and Angus Deaton, “The government needs to correct the process, not try to fix the outcomes”.

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The Indian Express, 3 February, 2021, https://indianexpress.com/article/opinion/columns/budget-like-farm-laws-is-marred-by-gap-between-intentions-of-government-and-ground-realities-of-agriculture-7171941/


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