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Budget Surplus in Agriculture: Unraveling the Unspent Crores and Implications for the Farming Community

by Tatyana Ivanovich
January 17, 2024
in Vegetables
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Budget Surplus in Agriculture: Unraveling the Unspent Crores and Implications for the Farming Community

#Unionbudget #Budgethiked #AgricultureMinistry #PMKisanyojana #PMKisanSammanNidhi #agriculturalbudget #financialefficiency #fundutilization #farminitiatives #agriculturetrends #governmentspending #fiscalresponsibility

In a surprising revelation, the Agriculture Ministry, despite receiving budget hikes in recent years, has surrendered over Rs 1 lakh crore in the last five years, as disclosed in the report titled “Accounts at a Glance for the Year 2022-2023.”

The Department of Agriculture & Farmers’ Welfare (DA&FW) surrendered a staggering Rs 21,005.13 crore of its annual allocation of Rs 1.24 lakh crore during the last financial year (April 2022-March 2023). This is almost four times the amount surrendered in the previous year 2021-22, marking a significant trend that raises questions about budget utilization efficiency.

Looking back, the department surrendered Rs 23,824.53 crore in 2020-21, Rs 34,517.7 crore in 2019-20, and Rs 21,043.75 crore in 2018-19. The Department of Agricultural Research and Education, a part of the ministry, also contributed to this trend by surrendering Rs 9 lakh of its total allocation of Rs 8,658.91 crore in 2022-23.

The combined budget of the two departments, under the Agriculture Ministry, saw a substantial increase from Rs 54,000 crore in 2018-19 to Rs 1.32 lakh crore during 2022-23. This was attributed to the launch of the PM Kisan Samman Nidhi during the financial year 2018-19. However, the report unveils a disconnect between increased allocations and actual expenditure.

The current financial year 2023-24 witnessed a marginal reduction in the ministry’s total allocation to Rs 1.25 lakh crore from Rs 1.32 lakh crore in 2022-23, possibly reflecting caution due to the historical non-utilization of funds.

The Standing Committee on Agriculture, Animal Husbandry, and Food Processing raised concerns about the fund surrender practice. The committee urged the government to “avoid” this practice, emphasizing that the surrender of funds was primarily due to less requirement under NES (North Eastern States), SCSP (Schedule Caste Sub-Plan), and Tribal Area Sub-Plan (TASP) components.

The unspent budget in the Agriculture Ministry raises critical questions about fiscal responsibility and effective fund utilization. For farmers, agronomists, and stakeholders in the agricultural sector, understanding the reasons behind this surplus is crucial for advocating efficient resource allocation and ensuring that the funds allocated translate into tangible benefits for the farming community.

Tags: agricultural budgetAgriculture Ministryagriculture trendsBudget hikedfarm initiativesfinancial efficiencyfiscal responsibilityfund utilizationgovernment spendingPM Kisan Samman NidhiPM Kisan yojanaUnion budget
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