Does the Budget address concerns of rural India?

The budget has come at a critical time. 2022-23 is the year by which PM Modi has promised to deliver doubled incomes to Indian farmers. So, hopes and expectations were high about big-ticket programmes and schemes targeted at delivering on the promise. Alas, there was no mention of the ‘doubling income’ in Finance Minister (FM) Nirmala Sitharaman’s budget speech. However, a renewed vision has been presented to the country by the FM who sought “to lay the foundation and give a blueprint to steer the economy over the Amrit Kaal of the next 25 years – from India at 75 to India at 100.”

Of the total budget of Rs 1.24 lakh crore of Department of Agriculture and Farmers’ Welfare, about 83 per cent is budgeted for three programmes/schemes: (i) crop insurance or Pradhan Mantri Fasal Bima Yojana (PMFBY) (about 13 per cent); (ii) interest subsidy for short term credit (about 16 per cent) and (iii)PM Kisan (about 55 per cent). The remaining about 17 per cent of the department’s budget is to be used for undertaking activities to support agriculture.

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Of this 17 per cent (or Rs 21,000 crore), about half (Rs 10, 433 crore) is earmarked for Rashtriya Krishi Vikas Yojna (RKVY). RKVY is a 2007-08 scheme launched by the previous government. This scheme offers greater autonomy to state governments to plan and prioritise how they want to use resources under this scheme.

States draw plans based on their specific priorities, local issues and challenges, taking their agro-climatic conditions, natural resource challenges and infrastructural deficits and priorities into account.

Overtime, budgetary allocations under this scheme have been falling. However, this year, RKVY allocation has been increased by more than 5-fold, from Rs 2,000 crore (RE2021-22) to Rs 10,433 crore. This is a good step as it makes available a greater quantum of scheme funds for states to tap to take their agricultural reforms and growth forward. The focus on using technology like drones for crop assessment, digitisation of land records, spraying of insecticides, and nutrients is a welcome step towards digitalising the sector.

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The FM has also shared her vision of delivering digital and high-tech services to farmers. Syncing startups with FPOs is another step in bringing technology closer to farmers. The renewed focus on nutrition along with food security is a welcome step.

Some misses include a 25 per cent reduction in the MGNREGA scheme allocation and a reduction in the government’s crop insurance scheme. The budgetary allocation for formation and promotion of FPOs has fallen by little less than a third. Centrality of Indian farmers and farming continues to be stronger than ever. Even though the dream of doubling incomes finds no mention in the current budget speech, the schemes and programmes appear well conceived and we pray they deliver to empower our farmers.

(The writer is a senior visiting fellow, ICRIER, New Delhi)

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