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1、皤AFTABAGRhF()0DTRENDSANDANA1YTICSBU11ET1NBudgetingforAgricu1tureandFoodVo1ume-2Issue-4Apri1,2023ICRIERCORE-6A,4thF1oor,IndiaHabitatCenter,1odhiRoad,NewDe1hi-110003zINDIA(Emai1:QgriCU1tUreicrier.res.in)FromtheDirectorsDeskTheUnionBudget2023-24waspresentedagainstthebackdropofsomecritica1geopo1itica1de
2、ve1opmentsandwasthe1astfu11budgetbeforethenextgenera1e1ections.Significant1y,2023isa1sotheyearinwhichIndiabecamethemostpopu1atedcountryinthep1anetandassumedtheG20presidency.TheBudgetservedasanopportunityforIndiatoout1ineitscontributionforshapingtheg1oba1agendaandstrengtheningitsG20priorities.A1sobei
3、ngthefirstbudgetofthepost-COVIDperiod,it1aidoutab1ueprintforacce1eratingtheIndiangrowthstorywhi1e1ayingdownsevenprioritiesoftheUnionGovernment.ThisissueofICRIERsAgricu1turePo1icy,Sustainabi1ityandInnovation(APSI)quarter1ypub1ication,Agri-FoodTrendsandAna1yticsBu11etin(AF-TAB)onBudgetingforAgricu1tur
4、eandFoodnfocusesonbudgetaryana1ysis,particu1ar1yaroundagricu1ture,subsidies,nutritiona1security,doub1ingfarmersincomeandgreengrowthactions.TheHon,b1eFinanceMinisteractedonthewindowofopportunitytosignificant1yreducenumeroussubsidiesnowthattheCOV1D-19outbreakisundercontro1andg1oba1commoditypricesarefa
5、11ing.Forinstance,theamountspentonfoodsubsidieswascutfromRs.2.87tri11ioninFY2023-23toRs.1.97tri11ioninFY2023-24,andtheamountspentonferti1izersubsidieswasdecreasedfromRs.2.25tri11iontoRs.1.75tri11ion.Simi1ar1y,theMGNREGAbudgetwascutfromRs.894bi11iontoRs.600bi11ionthisyear.Thoughtherura1poorareatadisa
6、dvantagefromthestandpointofexpenditurea11ocation,theywi11benefitfromthep1ethoraofnewprojects1aunched.Overa11,thebudgetappearedtohavestrucktheappropriateba1ancebetweengrowth,distribution,andstabi1ityatatimewhentheg1oba1economyisgrapp1ingwithsevera1crisesatonceandtheIndianeconomyisworkingtoresumeapath
7、ofrapidgrowththatisa1soinc1usive.However,thewaitjustgota1itt1ebit1ongerforthose1ookingforbo1dstructura1reformstoputIndiabackonthepathof8-10percentgrowth.DeepakMishraDirector&ChiefExecutiveICRIERAgricu1tureanda11iedsectorscontinuetomovewitharesi1ientmoderategrowthrateandwide1ydocumentedcha11engeswhic
8、haregettingcompoundedwiththec1imatechangeimpacts.Thesectorhasrecordedanaverageannua1growthrateof4.6percentoverthe1astsixyears,emp1oys45.6percentoftheworkforceandcontributedto18.6percentofthecountrysGrossVa1ueAddedin2023-22.Sti11itsviabi1ity,asanoccupation,remainsamajorconcern.Therefore,thebudgetaryp
9、rovisionsannouncedforagri-foodpo1iciesinUnionBudget2023-24needtobeunderstoodfromthe1ong-termperspectiveofagricu1turesectordeve1opment.AtatimewhenitseemsthatwehaveIe什thepandemicbehind,thisissuepresentsanana1ysisoftheagricu1turesectorprioritiesinUnionBudget2023-24.Beingthe1astfu11Budgetbeforethegenera
10、1e1ectionsduenextyearandthefirstbudgetofAmritKaa1addstoitsessence.Budget2023tookabo1dsteptowardsreorientingsupportintheagri-food-rra1space,awayfromdo1esandtowardsdeve1opment.Drasticcutsinfoodandferti1izersubsidy,andonMGNREGA,amountedrough1ytoRs.1.7tri11ionwereannounced.Savingsfromthesedo1eshavebeenr
11、edirectedtowardsmoreproductiveexpendituresonrai1ways,roads,rura1housingandja1shaktithatwi11he1prura1Indiathroughmu1tip1iereffect.Budget2023a1soaccordedduepre-eminencetoagricu1tura1researchandeducationwithanincreaseof9.8percentina11ocationscomparedto1astyear.Thisana1ysisofdo1esincomparisonwithdeve1op
12、mentispresentedinfirstartic1eofthisissue.ManykeyprovisionshavebeenmadeforAgricu1tureandFarmersWe1fareintheBudgetfortheFY2023-24,whichisRs.1.25Iakhcrorethistime(inc1udingAgricu1tureEducationandResearch).Outofthis,provisionofRs.60,000crorehasbeenmadeforPM-Kisan,Rs.23,000forKCCandRs.13,625forPMFasa1Bim
13、aYojana.Thatmeans77percentoftheagricu1turebudgeta11ocationisforsafetynetsandmere1y23percentforagricu1turedeve1opmentactivities.Thereisaneedforre-orientingtheagricu1turebudgettowardsdeve1opmentat1east50-50.Hon,b1ePrimeMinisterofIndia,ShriNarendraModi,madeanambitioustargettodoub1efarmersincomeby2023-2
14、3(on2015-16baseyear)andtoachievethistargettherequiredgrowthrateatthea11-1ndia1eve1wasestimatedtobe10.4percent(AshokDa1waicommittee).Wehavecomp1etedthetargetyear,butthebudgetdidnotpromiseanycritica1po1icytowardsfu1fi11ingthatgoa1.AsperthereportonTheStateofFoodSecurityandNutritionintheWor1d2023,fIndia
15、hasthe1argestundernourishedpopu1ationg1oba11ywhichstoodat224.3mi11ionofthe702.7mi11ionpeop1ein2019-21.Thethirdartic1eoftheissuepresentsdistrict-wiseana1ysisofunderweight,stuntedandwastedchi1drenacrossIndiandistrictsandeva1uatestheoptionstodovetai1ourbudgetarya11ocationin1inewiththetargetsoftheSustai
16、nab1eDeve1opmentGoa1(SDG)ofendinga11formsofma1nutritionby2030.Thereisa1sowidespreadacknow1edgementthatgrowthinagricu1turesectorhascomewithacosttotheenvironment,especia11ytoair,water,soi1,andgreen-housegas(GHG)emissionstotheenvironment.Continuationofubusiness-as-sua,approachtomeetingtherisingdemandforfoodwi11resu1tinusingnatura1resourcesbeyondtheireco1ogica1carryingcapacity.The1astartic1ecommentsontheimportanttrendsandprioritiesinUnionGovern
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