Budget 2024: Modi Government’s Focus on Agricultural Sector Ahead of Elections
Introduction to Budget process:
Before dwelling into key highlights of 2024 budget lets understand the budget process of India Briefly for a better and clear insight of Budget , the budget making start in Aug- sep about six months earlier to presentation of budget – it begins with various ministries providing estimates of their future expenditure with the record of previous year expenditure after collection of estimated from the departments various meetings between ministry of economic affairs and stake holders is held and then finance minister and other officials attend “Halwa ceremony” which marks the process of printing documents for the budget – finally on 1 Feb Finance Minister present the budget in the parliament. after presentation it goes to standing committees of parliament for evaluation. when committee submit its report and all demands of ministries becomes the grant budget is implemented around April-May.
Booming the agricultural economy.
- With the looming Budget 2024, the agricultural sector is poised to take center stage as the government seeks to address the needs of the approximately 250 million farmers and informal laborers who rely on it for their livelihoods. In a bid to tap into farm votes before the upcoming Lok Sabha elections, the Modi government is expected to announce populist measures aimed at bolstering the agricultural economy.
- One of the key expectations for Budget 2024 is an increase in the amount of money transferred under the flagship direct benefit transfer scheme, Pradhan Mantri Kisan Samman Nidhi (PM-Kisan), by about 50%. This move, if implemented, would raise the annual transfer to ₹9,000 per year from the current ₹6,000, according to a report by ET based on a poll of economists. Such an increase in direct cash transfers could significantly alleviate the economic burdens faced by small and marginal farmers, who constitute a significant portion of India’s agrarian workforce.
- However, while the focus on farmer-centric programs is expected to dominate the budget discussions, experts highlight the need for targeted measures to address the structural challenges plaguing the agricultural sector. These challenges include slow growth, high levels of farmer debt, small landholdings, and limited access to institutional credit and capital investments. Despite being the backbone of the Indian economy, the agricultural sector has long grappled with these issues, which have hindered its potential for growth and development.
Gender inclusivity in agriculture.
In addition to increasing direct cash transfers, the government may also introduce measures aimed at promoting gender inclusivity in agriculture. Reports suggest that there is a proposal to double the cash handout under PM-KISAN to ₹12,000 for women farmers. This move not only aims to empower women in agriculture but also aligns with the government’s efforts to woo female voters through gender-specific schemes.
Bringing resilience in the agricultural sector:
Furthermore, as the country continues to recover from the impact of extreme weather events such as floods and droughts, which have adversely affected food grain production, there is a pressing need for measures to enhance resilience in the agricultural sector. The government’s decision to increase minimum support prices (MSP) for key crops in the previous year underscores its commitment to supporting farmers amid challenging circumstances.
Looking ahead, the government faces the twin challenges of managing the budget deficit while ramping up spending on infrastructure and rural welfare. Despite the fiscal constraints, economists expect continued focus on infrastructure development, particularly in sectors such as roads, ports, and power plants. Additionally, with a significant portion of the population residing in rural areas, measures aimed at bolstering rural welfare and supporting farmers are likely to feature prominently in Budget 2024.
Conclusion:
In conclusion, Budget 2024 presents a crucial opportunity for the Modi government to address the needs of the agricultural sector and rural communities ahead of the upcoming elections. By implementing targeted measures to support farmers and promote inclusive growth, the government can pave the way for a more sustainable and resilient agricultural economy in the years to come.
