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The government allocated Rs 1.52 lakh crore for the agriculture sector in the Union Budget 2024-25
In Union Budget 2024-25, the government allocated Rs 1.52 lakh crore for the agriculture sector. (Courtesy: PTI)
Finance Minister Nirmala Sitharaman is set to table the Union Budget 2025-26 in her traditional ‘Bahi-Khata’ on February 1 and the agriculture sector expects the government to introduce reforms which can increase productivity, rural income and enhance exports.
The sector has received consistent allocations in the budget and has seen a compounded annual growth rate (CAGR) of 5.4% from fiscal year 2019-20.
The outlay for the agriculture and farmers’ welfare department stands at Rs1.32 lakh crore in the current fiscal year which is slightly more than the revised budget of Rs1.27 lakh crore for fiscal year 2024.
In the Union Budget 2024-25, the government allocated Rs 1.52 lakh crore to the Agriculture and Allied sectors.
The government also introduced different schemes for boosting the Indian agricultural sector last year. So, the question is what game-changing reforms will the Union Budget introduce this year for the agriculture sector?
Analysts Predict Budget Plan For Agricultural Sector
As per the analysts, the Union Budget will most likely introduce fertiliser subsidies and welfare schemes for the agricultural sector and also introduce measures for improving the infrastructure.
According to the forecast of the Bank of America Securities, there can be a marginal increase in subsidies.
Meanwhile, Goldman Sachs has forecast that the expenditure of the government on rural, welfare, transfer schemes and subsidies will be around 3% of GDP.
It added that some reallocation can be made in expenditure directed towards welfare spending and rural transfers.
The analysts of Bank of America said that budget allocation on welfare schemes like PM Kisan Samman Nidhi Yojana should see an increase and plans to upgrade roads in the rural areas should be introduced.
The experts have also hinted at the introduction of measures for improving crop protection solutions and introducing agri-tech innovations.
According to Reuters, two officials said that the government plans to increase expenditure on the agriculture sector by around 15%.
They added that the additional cash will be directed towards, increasing storage and supply infrastructure, developing high-yielding seed varieties and improving the production of dairy products, vegetables, pulse crops and oilseeds.
The analysts are also expecting budget allocation for improving irrigation facilities, warehousing infrastructure and supply chain efficiency in the agriculture sector.
