印度国际经济关系研究委员会-农业和食品预算（英）-2023.4-26页_2mb

Summary of "Budgeting for Agriculture and Food" (AF-TAB, Volume-2 | Issue-4 | April, 2023)

Core Content

This issue of Agri-Food Trends and Analytics Bulletin (AF-TAB) focuses on the Union Budget 2023-24 with an emphasis on budgetary allocations for the agriculture and food sectors. It analyses how the budget has shifted from traditional subsidy-based support to more development-oriented spending, aiming to promote sustainable growth and improve the livelihoods of farmers and rural communities.

Main Points

1. Budget Priorities and Shift in Focus

• The Union Budget 2023-24 is the last full budget before the 2024 general elections and the first of the "Amrit Kaal" period.
• The budget aims to reorient spending from "doles" (direct subsidies and welfare schemes) to "development" (infrastructure, research, and productivity-enhancing investments).
• Seven key priorities of the budget include inclusive development, infrastructure, green growth, and youth empowerment.

2. Reduction in Subsidies

• Significant cuts in subsidies were made, especially in food, fertilizers, and MGNREGA.
• Food Subsidy: Reduced from Rs. 2.87 lakh crore (RE) to Rs. 1.97 lakh crore (BE), saving Rs. 90,000 crore.
• Fertilizer Subsidy: Cut from Rs. 2.25 lakh crore (RE) to Rs. 1.75 lakh crore (BE), saving Rs. 50,000 crore.
• MGNREGA: Reduced from Rs. 89,400 crore (RE) to Rs. 60,000 crore (BE), saving Rs. 29,400 crore.
• These savings are redirected towards rural infrastructure development, including railways, roads, housing, and water supply.

3. Development Expenditure

• A major increase in development expenditure is observed across several sectors:
  • Railways: Capital outlay increased by 48.6% to Rs. 2.41 lakh crore.
  • Road Transport and Highways: Capital outlay rose by 24.6% to Rs. 2.70 lakh crore.
  • Jal Jeevan Mission: Increased by 27.3% to Rs. 70,000 crore.
  • PM Awas Yojana (Rural): Increased by 172.4% to Rs. 54,487 crore.
• These investments are expected to improve connectivity, reduce logistics costs, and enhance rural living standards.

4. Focus on Green Growth

• The budget includes a significant allocation for renewable energy and green growth initiatives.
• Renewable Energy Sector: Rs. 10,222 crore allocated, up 48% from previous year.
• PM-KUSUM: Rs. 1996 crore allocated for solar energy, up from Rs. 1325 crore.
• These measures aim to promote sustainable agriculture and reduce environmental impact.

5. Agricultural Research and Education

• There is a 9.8% increase in the allocation for agricultural research and education.
• The Department of Agriculture Research and Education (DARE) received Rs. 9,504 crore.
• This reflects a growing recognition of the importance of innovation and technology in improving agricultural productivity and resilience.

6. Farmers' Income Doubling Initiative

• The government has set a target to double farmers' income by 2022-23, based on 2015-16 levels.
• The required growth rate to achieve this was estimated at 10.4% by the Ashok Dalwai Committee.
• However, the budget did not introduce any major policy or allocation to achieve this goal.
• Farmers' income growth has been slow, with a real income CAGR of 3.4% (using CPI-AL) and 5.3% (using WPI), far below the required 10.4%.
• The share of income from cultivation has decreased from 46% to 38%, while the livestock and fishery sectors have shown higher growth.

7. Nutrition Security and SDG Alignment

• The issue highlights the need to align budgetary allocations with the Sustainable Development Goals (SDG) of ending malnutrition.
• India has a large undernourished population (224.3 million in 2019-21), and the budget must support initiatives to improve nutritional outcomes.
• A district-wise analysis of child malnutrition is presented, showing that while some indicators have improved, the overall progress is not sufficient to meet SDG targets.

Key Information

• Subsidy Cuts: Total savings from food, fertilizer, and MGNREGA subsidies amounted to approximately Rs. 1.7 lakh crore.
• Development Expenditure: Increased significantly in sectors like railways, roads, rural housing, and water supply.
• PM-Kisan and PMFBY: Allocations remain at Rs. 60,000 crore and Rs. 13,625 crore respectively, but not increased as expected.
• Agricultural Research and Education: Increased by 9.8%, but still insufficient for achieving the DFI target.
• High-Value Crops and Livestock: The budget encourages a shift from low-value crops to high-value livestock and fisheries, with increased allocations.
• Green Growth: Emphasis on renewable energy and sustainable practices, though still in early stages.
• Nutrition Security: Requires more focused budgetary support to align with SDG targets and reduce child malnutrition.

Conclusion

The Union Budget 2023-24 marks a shift in focus from direct subsidies to development-oriented spending, aiming to enhance rural infrastructure and promote sustainable growth. However, the budget falls short in addressing critical issues like doubling farmers' income and achieving nutrition security. There is a need for more substantial investment in agricultural R&D, better alignment of budgetary provisions with SDG targets, and more targeted support for high-value agriculture and green growth initiatives.