A budget for the agricultural sector once again








A farmer in his field






Continuing from last year’s budget, the government seems to have once again taken care of the welfare of the farming community. The initiatives taken can be considered progressive and fiscally forward-looking as they prepare the nation for the next stage of its sustained growth.












The 2021-2022 budget contained a clear message that the government is committed to maintaining the growth of the agricultural sector, in addition to doubling farmers’ incomes by 2022-23 and becoming a $5 trillion economy by 2024-25. The government has not increased import duties on intermediate products and raw materials to support manufacturing and help downstream industry, which is also a welcome move.

There is a significant increase in capital spending and that is the highlight of this budget. Proposals and announcements of budget pitches for the country to go digital as well as green. This budget focuses on key areas for growth and in this regard, the FM said that the 2022-23 budget will lay the foundation for India’s economic growth and expansion for the next 25 years. The main highlights are:












Budget announcement

Impact

MSP direct payment to farmers will be Rs 2.37 Lakh crores

Increased income of farmers engaged in wheat and paddy cultivation.

Allocation for the financing of agricultural and rural start-ups

Positive for the agricultural sector as a whole

Drive towards increased production of oilseeds and pulses

Reduction in the burden of imports on the balance sheet n improvement in the income of domestic producers

Better use of agricultural technology and focus on supply

Raising the standard of living of farmers and boosting the productivity of staple crops to maintain a sufficient buffer and improve export potential, given a higher food surplus.







Lana T. Arthur