Budgets and Agriculture      Ramanjaneyulu
Budgets for Agriculture• Public investments for agriculture coming down• Budgets to agriculture were 18% in 1980s and  now...
Union Budget 2013-14 (1.6%)•   Rs 27,049 crore , an increase of 22 percent over the RE of the current year•   Rs 3,415 cro...
Madhya Pradesh• Total provision of 4765 crore rupees for the development of irrigation facilities• Work on 2 large and 10 ...
Mukhya Mantri Kisan Videsh Adhayayan Yojana• 9 crore and fivefold increase in the goals of State Micro Irrigation scheme• ...
•                                        Karnataka    Rs. 22,310 during 2013-14 (Rs.17857 cr during 2011-12 and Rs.19660 c...
Andhra Pradesh (3.7%)• Total of Rs. 25,962cr which includes   – Rs. 6939 cr for Agriculture and allied sectors (Rs. 974 cr...
What should we ask?• Special Agriculture Budget or a sub-plan on  agriculture which has a legal validity• What process can...
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Budgets for Agriculture-National and State level

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Budgets for Agriculture in Central, AP, Karnataka and MP budgets

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Budgets for Agriculture-National and State level

  1. 1. Budgets and Agriculture Ramanjaneyulu
  2. 2. Budgets for Agriculture• Public investments for agriculture coming down• Budgets to agriculture were 18% in 1980s and now they form less than 2% of the total budget• Public investments used for private profits• Increasingly government role is shifting from service provider to service buyer• Focus shifting from food crops, small farms, food security to commercial crops, large farms and export markets
  3. 3. Union Budget 2013-14 (1.6%)• Rs 27,049 crore , an increase of 22 percent over the RE of the current year• Rs 3,415 crore for agricultural research• Agriculture credit increased from Rs 575,000 crore (2012-13) to Rs 700,000 crore• Interest subvention extended to extend the scheme to crop loans borrowed from private sector scheduled commercial banks• Rs. 1000 cr to Bringing Green Revolution to Eastern India• Rs 500 crore for crop diversification to promote technological innovation and encourage farmers to choose crop alternatives in Green Revolution areas• Rs 9,954 crore for Rashtriya Krishi Vikas Yojana and Rs. 2,250 for National Food Security Mission• Allocation for the integrated watershed programme from Rs 3,050 crore in 2012-13 (BE) to Rs 5,387 crore• Rs. 200 cr for Nutri-farms• Rs. 50 cr for providing matching equity grants to registered FPOs upto a maximum of Rs 10 lakh per FPO to enable them to leverage working capital from financial institutions• Credit Guarantee Fund will also be created in the Small Farmers Agri Business Corporation with an initial corpus of Rs 100 crore• Rs. 307 cr for National Livestock Misison• Rs. 10,000 cr additional subsidy for Food Security
  4. 4. Madhya Pradesh• Total provision of 4765 crore rupees for the development of irrigation facilities• Work on 2 large and 10 medium irrigation schemes will be started in the year 2013-14• Subsidy of 1700 crore rupees for electricity supply to farmers• Investment of 3000 crore rupees in the year 2013-14 for Feeder separation scheme to ensure 8 hours continuous electricity supply to farmers• Provision of 400 crore rupees for free electricity for 5HP agricultural pumps (land up to 1 hectare) and up to 25 units per month domestic electricity consumption to SC and ST farmers/consumers• Provision of 500 crore rupees to provide loan at 0 percent interest rate to farmers• Provision for bonus of 150 per quintal on wheat procurement. Provision of 1050 crore rupees for this incentive• New scheme for incentivising organic agriculture along with scheme to reward agricultural farmers at block level too. Provision of 12 crore rupees made• Seed cum organic fertilizer drill grant to induce linear sowing• Target of cent percent seed treatment
  5. 5. Mukhya Mantri Kisan Videsh Adhayayan Yojana• 9 crore and fivefold increase in the goals of State Micro Irrigation scheme• 32 crore rupees to establish 250 custom hiring centres• 4 crore rupees for semen transplantation lab to rear superior breed• Veterinary doctors at door-step extended to 89 tribal blocks• Initiation of core banking facility in Central Cooperative Banks• Assistance in RBC 6(4) for damage of crops by black buck and blue bull.• 12 crore rupees for proper storage of Wheat/Rice• 18 crore rupees for establishment of 50 new and upgradation of 123 Veterinary Hospitals• 55 crore rupees for integrated cooperative development projects• 350 crore rupees for the year 2013-14 under Annapurna Scheme• 27 crore rupees for fish farming for Plan expenditure which is 50 percent more than the last year• Short term working capital loan to fishermen at 0 percent interest rate.Infrastructure Development• 8856 crore rupees in the energy sector• 2681 crore rupees for upgradation and strengthening of electricity distribution• 405 crore rupees to enhance power generation capacity• 29 crore rupees to promote non-conventional energy• 4970 crore rupees for road construction and maintenance• 501 crore rupees for Mukya Mantri Gramin Sadak Yojana
  6. 6. • Karnataka Rs. 22,310 during 2013-14 (Rs.17857 cr during 2011-12 and Rs.19660 cr during 2012-13)• Farmers Income Commission would be setup• Rs. 15 cr for Bhoomi project to set up a database of farmers records• Rs. 75 cr to set up newer extension system• Rs. 50 cr for drought proofing in colloboration with CGIAR institutions• Rs. 75 cr for Bhoochetana to improve rainfed areas• Rs. 300 cr for Suvarna bhumi program• Rs. 30 cr to rejuvinate saline and alkaline soils• Rs. 100 cr for Amruta Bhoomi (organic farming)• Rs. 55 cr for seed self reliance• Rs. 10 cr for mobile based information for farmers• Rs. 100 cr for subsidy for weather insurance premium and Rs. 35 cr to install rainguages in 3700 villages and remote meterological stations in 550 hoblis• Rs. 50 cr for solor powered motors• Rs. 100 cr for subsidy on mechanisation• Rs. 1310 cr for Horticulture• Rs. 1118 cr for Animal Husbandry• Rs. 238 cr for Fisheries• Rs. 5250 cr for power subsidy• Rs. 1521 for waiver of cooperative loans• Rs. 300 cr for interest subvention. Zero % interest for upto Rs. 1 lakh coop loans and 3% on commercial bank loans
  7. 7. Andhra Pradesh (3.7%)• Total of Rs. 25,962cr which includes – Rs. 6939 cr for Agriculture and allied sectors (Rs. 974 cr higher than last year) – Rs. cr for jalayagnam (Rs. 1200 cr less) – Rs. 3622 cr for power subsidy – Rs. 484 cr for roads and bridges – Rs. 104 cr for strengthening PDS, and – Rs. 104 for marketing and storage• Newer proposals – Rs. 589 cr for disaster relief fund – Rs. 100 cr for price stabilization fund – Rs. 120 cr for Food processing
  8. 8. What should we ask?• Special Agriculture Budget or a sub-plan on agriculture which has a legal validity• What process can make it more inclusive?• How to account for long term/short term investments in budget?

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