Indian Express Editorial Summary

Editorial Topic : Union Budget 2024: Responsible, Inclusive, and Sustainable Growth

 GS-3 Mains Exam : Economy

Question : Evaluate the increased allocation for agriculture in the Union Budget 2024, with a focus on sustainability. Discuss the potential impact of promoting natural farming, pulses, climate-resilient varieties, and vegetable clusters on agricultural productivity and exports.

Fiscal Consolidation:

• FY25 budget: Fiscal deficit at 4.9% of GDP (target: 4.5% in FY26).
• Aims to reduce deficit by 1.8% over the last four years (largest annual reduction since 2013).
• Focus on debt control – essential for a sovereign rating upgrade.

Capital Expenditure Push:

• Continued focus on capital spending – ₹1.5 lakh crore as a 50-year interest-free loan to states for critical areas like health and education.
• Importance of state participation for achieving “Viksit Bharat” goal.

Focus on Agriculture and MSMEs:

• Increased allocation for agriculture with emphasis on sustainability (pulses, climate-resilient varieties, vegetable clusters).
• Promotion of natural farming through branding and certification.
• Focus on value creation and agri-exports.
• Unique land parcel identification number (ULPIN) for quicker agricultural credit flow.
• Leveraging MSMEs’ digital footprint and enhanced credit assessment for loans.
• Doubling Mudra loan limits for successful previous loan repayments.

Education and Skill Development:

• High priority with ₹1.48 lakh crore allocation.
• Educational loans up to ₹10 lakh for higher education in Indian institutions.
• Overall health and education budget allocation still minimal by global standards.

Reducing Regional Disparities:

• Allocations for “Viksit Bihar” (state with the lowest per capita income).

Conclusion:

• Budget aims for responsible spending, inclusivity, and sustainable growth.
• Moves the needle towards a more egalitarian society and balanced regional development.

 

 

 

Indian Express Editorial Summary

Editorial Topic : Agriculture Sector Disappointed in Budget 2024

 GS-3 Mains Exam : Economy

Question : The Economic Survey 2023-24 has recommended reorienting agricultural policies to benefit farmers and the environment. Analyze the current agricultural policies and their impact on soil fertility, water resources, and public health. What policy changes would you suggest to achieve sustainable agricultural growth?

Agriculture Growth Slowdown:

• Indian GDP growth rate at 8.2% in 2023-24, likely above 7% in FY25.
• Agriculture sector growth declined from 4.7% (FY23) to 1.4% (FY24).

Low Investment in R&D:

• High return on investment (ROI) in agri-R&D (over 10 times).
• Need for increased investment to boost agriculture growth.
• Department of Agricultural Research and Education (DARE) allocation:
  • Rs 99.4 billion (FY25) – marginal 0.7% increase from FY24.
  • Agriculture R&D expenditure declining as % of Agri-GDP (Agriculture Research Intensity – ARI).

Barely Matching Inflation Increase in Allocation:

• Budget allocation for agriculture and allied sectors: Rs 1.52 trillion.
• Ministry of Agriculture and Farmers’ Welfare:
  • Rs 1.22 trillion (FY25) – only 5% increase from FY24 (barely covers inflation).
• Ministry of Fisheries, Animal Husbandry and Dairying:
  • 27% increase in allocation (positive for this growing sector).

Focus on Welfare Schemes and Subsidies:

• Support for agriculture-food-rural sector through:
  • Food and fertiliser subsidies
  • Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
  • PM-KISAN, credit subsidies, PM-Fasal Bima Yojana (by Agriculture Ministry)
• Total welfare and subsidy measures: Rs 5.52 trillion (FY25) – slightly less than FY24.
• This represents 11.5% of overall budget and 21.4% of central government’s net tax revenue.
• Food subsidy: Rs 2.05 trillion (FY25) – benefits consumers more than farmers.

Economic Survey 2023-24 Recommendations Ignored:

• Need to reorient agricultural policies to benefit farmers and environment.
• Current policies:
  • Increased productivity but harmed soil fertility, water resources, and public health.

Conclusion:

• Urgent need to transform agriculture for growth and sustainability.
• Re-orient subsidies for higher value addition, farmer income boost, and food processing/export opportunities.