Union Budget 2019-20 Focus on Rural Sector Silent on Reforms in Fertilizer Sector

摘要

This year's Union Budget 2019-20 is a follow up of Interim Budget presented in February 2019. In addition to existing schemes, a number of new schemes have been proposed. Government has also pronounced a number of policy initiatives and intention for growing size of Indian economy to USD 5 trillion in next 5 years. Our focus here is on initiatives and provisions for agriculture and fertilizers. Government has proposed to invest in wide range of schemes in agriculture and allied sectors. Government would also seek support from private entrepreneurs for a number of programmes for value addition in farm sector. Against the Revised estimate for 2018-19 at Rs 86,602 crore for agriculture and allied activities, the Budget 2019-20 proposes to invest Rs.1,51,518 crore in this sector. This is an increase of about 75 per cent. Bulk of this additional allocation is for the flagship programme of the government, namely Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) earlier announced in the Interim Budget in February, 2019. To address the issue of wide spread distress amongst farmers, government introduced the scheme before the General Election 2019 to provide income support to farmers across the country. The scheme provides for a payment of Rs.6000 per year per farmer's family in three quarterly instalments of Rs. 2000. Initially, it was meant for small and marginal farmers, but now has been extended to all farmers. In view of expansion of scope of the scheme, allocation of Rs.75,000 crore may be inadequate.