Analysis: Amount allocated for various agricultural schemes seems inadequate

February 18, 2019 7:08 PM |

Budget Allocation for Agriculture

The Bharatiya Janata Party (BJP) government raised the agriculture allocation from Rs 57,600 crore to near Rs 1,40,764 crore in the interim budget. It is an unparalleled 144% rise in the interim budget 2018-19.

The agriculture ministry this time has created a benchmark for the upcoming governments by earmarking a share of 5.2% in the total union budget.

As per the budget allocation analysis, this unequalled hike would not be enough in fighting the ongoing agricultural crisis which has led to widespread farm agitations in India. The new income security scheme is short-term, which would provide the eligible farmers just Rs 500 per month (considering a household size of five).

2014-15 and 2015-16 were the two drought years faced by the Agriculture sector. At that time, the average growth was just 0.1% p.a.  As per the data, the ratio of allocation for this sector to GDP remained somewhere between 0.3 to 0.4% during 2014-15 and 2018-19.  During 2014-15 and 2016-17, the private sector investment to GDP ratio came down from 2.2% to 1.8% which has led to an overall decline in investment from 2.6% to 2.1%. Hence, resulted in rural crisis and agrarian distress.

These drought years could have been efficiently managed if the government would have focused on strengthening the irrigation networking systems in the nation. Sadly, no such thing happened.

The Pradhan Mantri Krishi Sinchayee Yojana, 2014-15 (prime minister’s irrigation scheme) has always been underfunded and has seen no rise since its implementation.

The agricultural crisis forced the government to shift the attention towards improving the income of the farmer. In the NITI Aayog’s three-year action agenda, government then promised to double farmers’ income by 2022 wherein they decided to use 2015-16 as the base year. The farm incomes were lower because 2015-16 was a drought year.

The BJP government followed some short-term strategies to raise farmers’ income by increasing the minimum support price in order to make farming more paying.

Another solution to address agri distress was to provide a minimum income support to the farmers. Recently in the interim budget 2019, the government announced an annual income support of Rs 6,000 to every family with less than 2 hectares of land under a scheme titled, Pradhan Mantri Kissan Samman Nidhi.

For the year 2018-19, Rs 20,000 crore has been proposed which would cater only 100 million farmers. This means that a transfer of Rs 500 would be given to farmers per month.

Image Credit: Down To Earth

For accurate weather forecast and updates, download Skymet Weather (Android App | iOS App) App.

Weather Forecast

Other Latest Stories

Weather on Twitter
#UttarPradesh (1/1): #Rain in #Agra, #Aligarh, Badaun, Baghpat, Bareilly, Bijnor, Bulandshahr, Etah, Firozabad,…
Monday, July 22 14:15Reply
शेतकरांनी कापसाची पेरणी पूर्ण करून घ्यावी तसेच सोयाबीन, डाळी व राहिलेल्या भागात भाज्या लावाव्या. . via…
Monday, July 22 14:15Reply
#KeralaRains: Red and orange alerts have been issued for #Kozhikode, #Wayanad, #Kannur, #Kasargod. Orange alert in…
Monday, July 22 14:06Reply
#Rajasthan, #AndhraPradesh, and #TamilNadu which have been reeling under intense #heat. Moreover, the state has bee…
Monday, July 22 14:00Reply
दिल्ली, नोएडा, गुरुग्राम, गाजियाबाद, फरीदाबाद में 24 जुलाई से बारिश की गतिविधियां एक बार फिर से तेज़ होंगी और उम्मी…
Monday, July 22 13:45Reply
Have a look at the day and night #temperatures for major cities of #India on July 22. #Weather
Monday, July 22 13:30Reply
Places like Bhind, Morena, Sheopur, Shivpuri, #Gwalior, Guna, #Tikamgarh and #Sagar may receive moderate to heavy…
Monday, July 22 13:15Reply
Moderate #rains with one or two heavy to very heavy spells will occur over #Kerala, Coastal #Karnataka, and South I…
Monday, July 22 13:00Reply
बीते 24 घंटों में पश्चिम बंगाल, मेघालय, केरल, कर्नाटक, गुजरात, तमिलनाडु, राजस्थान, अंडमान-निकोबार, महाराष्ट्र में…
Monday, July 22 12:45Reply
In the last 24 hours, #Jalpaiguri in #WestBengal has been the #rainiest place in #India with 173 mm of #rainfall.
Monday, July 22 12:30Reply

latest news

USAID Skymet Partnership

Skymet weather

Download the Skymet App

Our app is available for download so give it a try