Context:
The 2023-24 budget has failed to address the twin crisis in agriculture in India, which includes food and fertilizer shortages.
Overview of Indian Agriculture Budget 2023
- Twin crisis in food and fertilizer prices globally and domestically.
- Union government’s objective to protect farmers and consumers and raise net income from cultivation.
Expectations from the Budget:
- It must have protected farmers and consumers from the food and fertilizer crises;
- It must have taken steps to raise net incomes from cultivation.
Disappointing Allocations
- Fertilizer subsidies have also been cut from ₹2.25 lakh crore to ₹1.75 lakh crore.
- Allocation for the Mahatma Gandhi National Rural Employment Guarantee Scheme has been cut from ₹73,000 crore in 2022-23 (BE) to ₹60,000 crore in 2023-24 (BE).
- No relief for farmers in terms of compensatory rise in output prices
- No scientific validation for the promotion of natural farming.
Capital Expenditure
- Utter neglect in capital investment in agriculture
- Requirement of capital investment in irrigation and markets (mandis)
- Total capex of government in 2022-23 was ₹7.5 lakh crore
- Allocation under capital accounts of crop husbandry, animal husbandry, dairy and fisheries was ₹119 crore in 2022-23
- Expected to fall to ₹84.3 crore in 2023-24
- Budgeted allocation for irrigation and flood control was ₹350 crore in 2022-23 and expected to fall to ₹325 crore in 2023-24
- Agriculture Infrastructure Fund (AIF)
Lack of Capital Expenditure
- Neglect in allocation for capital investment in agriculture
- Allocations for various schemes not listed in Budget documents
- Fragmented allocations thinly spread across departments with limited impact on agriculture
Conclusion
- Budget fails to address pressing problems in Indian agriculture
- Lack of scientific and grounded vision in quantum and direction of allocations.
News Source: The Hindu
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