UNION BUDGET 2022-23

ANALYSIS OF AGRICULTURE AND

ALLIED SECTOR.
Presented by :

• Shubhra Rathi : 2k201131

• Sharwari Gite : 2k201031
• Ashwini Torane : 2k201105
• Bhagyashree Bidkar : 2k201014
Introduction about Union Budget
Budget is the annual financial statement of the estimated receipt and expenditure of the
government of the respective year. The fiscal year starts from 1st April and ends on 31st March.
Budget is presented in the Indian Parliament by the Finance Minister of India in the month of
February. The formulation of Budget is the task of the Budget Division of the department of
Economic Affairs, this department is the part of the finance ministry.

Budget

Revenue Budget Capital Budget

Revenue Capital
Revenue Receipt Expenditure Capital Receipt
Expenditure

Tax Non Tax

Revenue Revenue Loans from public, foreign government an
RBI form a major part of the government’s
capital receipt.
Direct Capital Expenditure is the expenditure on
Day to day
Tax functioning of the
development of machinery equipment ,
building, health facilities, education etc.
government and
services provided
Indirect to citizens
Tax
Agriculture and Allied Sector

The agriculture sector has experienced buoyant growth in the past two
years. The sector, which is the largest employer of workforce,
accounted for a sizeable 18.8 per cent (2021- 22) in Gross Value Added
(GVA) of the country registering a growth of 3.6 per cent in 2020-21 and
3.9 per cent in 2021-22. Growth in allied sectors including livestock,
dairying and fisheries has been the major drivers of overall growth in
the sector.

• Contribution of agriculture sector to the Gross Value Added (GVA) in the

Indian economy in the past two years.

• Growth rate of 3.9% in agriculture sector in 2021-22, Agriculture sector had

maintained steady growth over the past five years .

• The Budget allocation has been raised marginally by 4.5 per cent for the
Ministry of Agriculture and Farmers’ Welfare for 2022-23 fiscal.

• The Budget allocation for the Ministry of Fisheries, Animal Husbandry and
Dairying has been increased by 44 per cent to Rs 6,407.31 crore and for Food
Processing Industries by 2.25 times to Rs 2,941.99 crore for the next fiscal.

• Agriculture and allied activities, saw a marginal 2% increase in Budget

allocations for 2022-23.

• The Agriculture sector’s share in the overall Budget allocations fell from
4.26% in 2021-22 to 3.84%.
Advantage to India
1. Robust demand
2. Competitive advantage
3. Policy support
4. Attractive opportunities

Major seasons: Kharif and Rabi

Rabi area sown in 2020-21 (million Kharif area sown in 2020-21 (mil-
hectares) (as of January 29, 2021) lion hectares) (as on July 31, 2020)

3.5 wheat rice

10.9
5.2
5.2 26.7 pulses
pulses
coarse
8.4 oil seeds cearles
15
34.6 coarse oilseeds
1.7
cereals 11.2 sugarcane
14.8
rise cotton

Favorable policies are supporting the sector growth

• Pradhan Mantri Kisan Samman Nidhi
• Pradhan Mantri Fasal BimaYojana
• Agriculture Infrastructure Fund
• Pradhan Mantri Krishi Sinchai Yojana
• Animal Husbandry Infrastructure Development Fund
• Kisan Credit Card
• Pradhan Kisan Mantri Maan Dhan Yojana
• PM Krishi Sinchai Yojana
• Group Accident Insurence Scheme for Fishermen
• Interest Subvention for Dairy Sector
Provisions for Agriculture sector in Union Budget 2021-22

 The Budget identified agriculture sector as one of the key drivers of the economy.
 It ensured MSP at a minimum 1.5x the production cost across all commodities.
 SWAMITVA scheme was extended to all states/UTs, 1.80 lakh property-owners in 1,241 villages
have already been provided cards.
 For FY22, the agricultural credit target was enhanced to Rs. 16.5 lakh crore (US$ 226.29 billion),
with animal husbandry, dairy and fisheries as the focus areas.
 The Rural Infrastructure Development Fund was enhanced to Rs. 40,000 crore (US$ 5.49 billion)
from Rs. 30,000 crore (US$ 4.11 billion).
 The ‘Micro Irrigation Fund’ was doubled to Rs. 10,000 crore (US$ 1.37 billion).
 The ‘Operation Greens’ scheme was extended to 22 perishable products to boost value-addition in
agriculture and allied sectors.
 Through e-NAM (National Agriculture Market), 1.68 crore farmers were registered and trade worth
Rs. 1.14 lakh crore (US$ 15.63 billion) was carried out; 1,000 more mandis will be integrated to
achieve transparency and bring competitiveness.
 Customs duty on cotton was increased from 0% to 10% and raw silk and silk yarn from 10% to 15%.
 Agriculture Infrastructure and Development Cess (AIDC) was added to numerous items.
 Agricultural Produce & Livestock Market Committee was able to access the agriculture
infrastructure funds to augment infrastructure facilities .
PROVISIONS FOR AGRICULTURE SECTOR SCHEMES IN
INDIAN UNION BUDGET 2022-23

 Record Food grains Production and processing and

Enhanced procurement
 2.37 lakh crore direct payment of minimum support
price (MSP) to 163 lakh farmers
 Chemical free natural farming will be promoted.
 Promoting post harvest value addition, consumption
and branding of millet products
 Delivery of Digital and Hi-Tech services to farmers in
public-private partnerships (PPP) mode
 Use of Kisan Drones to aid farmers
 Launching fund with blended capital to finance
agriculture start ups
 Ken Betwa Link Project to benefit 9.1 lakh hectare farm
land
Gap Analysis of Faltering Allocations
Agriculture The 2022-23 Union Budget outlay for agriculture and its allied sectors has
witnessed a small increase of Rs 2,697 crore (2 per cent) over the
sector previous year's Budget Estimates. The sector's share in the total
Union Budget outlay has remained stagnant and its allocation has
declined as a proportion of the Gross Domestic Product (GDP).

Outlay for Agriculture and Allied Sectors (in %)

4.5

4 3.91 3.9

3.4 3.47 3.51

3.5

3
2.45
2.5

1.5

1
0.52 0.6 0.61 0.56 0.54
0.5 0.3

0
2018-19 2019-20 2020-21 2021-22 2021-22 2021-23

Total Union Budget Expenditure % of GDP

Departments 2018-19 2019-20 2020-21 2021-22 2021-22 2022-23

Department of Agriculture, 33,339 29,319 29,493 38,549 32,652 36,500

Cooperation and Farmers Welfare
(Excluding Interest subvention and
Income support scheme)

Department of Agricultural Research 7,544 7,523 7,554 8,514 8,514 8,514

and Education

Ministry of Fisheries, Animal Husbandry 3,171 3,363 3,346 4,323 4,121 6,037
and Dairying

Interest Subvention for Providing Short 11,496 16,219 17,790 19,468 18,142 19,500
Term Credit to Farmers

Pradhan Mantri Kisan Samman Nidhi 1,241 48,714 60,990 65,000 67,500 68,000
(PM-Kisan)
Total Expenditure under Agriculture 56,791 1,05,138 1,19,173 1,35,854 1,30,929 1,38,551
and Allied Sectors

In 2019-20, a separate Ministry of Fisheries, Animal Husbandry and Dairying was constituted with two
departments – Department of Fisheries and Department of Animal Husbandry and Dairying. Prior to this,
the Department of Animal Husbandry, Dairying and Fisheries was part of the Ministry of Agriculture and
Farmers Welfare.
 Composition of Union Budget Al-
locations for Agriculture and Allied
Sectors (in %)

100 90.9 90.6 90.3

89.6 89.5
90 81.1
80
70
60
50
40
30
20 13.3 2.8
5.6 7.2 6.3 6.3 6.5 6.14.4
10 3.2 3.2 3.1
0
2018-19 (A) 2019-20 (A) 2020-21 (A) 2021-22 (BE) 2021-22 (RE) 2022-23 (BE)

Department of Agriculture, Cooperaon and Farmers Welfare

Department of Agricultural Research and Educaon
Ministry of Fisheries, Animal Husbandry and Dairying
 Budget Priories for Various Kinds of Support for Agricultural Operations
provided under the Department of Agriculture and Farmers Welfare (in %)

2018-19 (A) 2022-23 (BE)

Income support & risk

migaon 1.3 Income support &
1 18 risk migaon
Sustainable agriculture Sustainable
28.4 28.6
agriculture
2.2
Post-harvest Post-harvest
11.1 Input-based
Input-based Others
14.7
27.4 67.4
Others
Would the Revamping and Restructuring of Schemes Help Agriculture?

RKVY has been revamped in the 2022-23 Union Budget and the Revamped program has subsumed (through
mergers) a number of other schemes. These are
 Pradhan Mantri Krishi Sinchai Yojana (PMKSY: Per Drop, More Crop),
 Paramparagat Krishi Vikas Yojana (PKVY),
 National Project on Soil and Health Fertility,
 Rainfed Area Development and Climate Change,
 Sub-Mission on Agriculture Mechanisation, including Management of Crop Residue, etc

Revamped Rashtriya Krishi Vikas Yojana (Rs crore)

Schemes 2018-19 2019-20 2020-21 2021-22 2021-22 2022-23
(A) (A) (A) (BE) (RE) (BE)
National Project on Soil Health and Ferlity 314 159 200 315 100 -

Pradhan Mantri Krishi Sinchai Yojana (PMKSY)- Per Drop 2,918 2,700 2,562 4,000 2,000 -
More Crop
Sub- Mission on Agriculture Mechanisaon 1,101 965 1,000 1,050 850 -

Promotion of Agricultural Mechanisation for 584 594 571 700 700 -

Management of Crop Residue
Rainfed Area Development and Climate Change 216 187 128 180 110 -

Paramparagat Krishi Vikas Yojana 329 284 381 450 100 -

Rashtriya Krishi Vikas Yojana 3,370 3,085 2,561 3,712 2,000 -

Revamped RKVY 8,832 7,974 7,404 10,407 5,860 10,433

Overall Direction in the Union Schemes such as PMKSY-
Budget Support for the Sector Per Drop More Crop,
RKVY, NFSM and
Shares of “Core Schemes providing Sector-wide National Horticulture
Interventions” versus “Other Schemes providing Mission, among others,
support to individual beneficiaries” in the total have been providing such
Union Budget outlay for Agriculture and Allied sector-wide support to
Sectors (in %) agriculture; we are referring
to such schemes as 'core
2018-19 (A) 56.6 43.4 schemes' in agriculture.
The share of these 'core
2019-20 (A) 81 19 schemes', which provide
sector-wide support to
2020-21 (A) 77.3 22.7 agriculture and the farming
community as a whole, has
2021-22 (BE) 79.7 20.3
fallen from 43.4 per cent of
the total Union Budget
2021-22 (RE) 82 18
outlay for agriculture in
2018-19 to 23.4 per cent of
the Union Budget outlay for
2022-23 (BE) 76.6 23.4
the sector in 2022-23 (BE)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Other Intervenons Core Intervenons

PROJECTIONS:
 The performance of the agriculture and the allied sector has been resilient to the COVID 19 shock.

 Crop diversification towards oilseeds, pulses and horticulture needs priority .

 There is a need for coordinated action from the State Governments to facilitate the shift to high value
and less water consuming crops

 Research and development in agriculture & allied sectors plays crucial role in realization of sustainable
agriculture practice .

 The increase in agriculture R & D can improve productivity in the crop and allied sectors.

 Need to explore options and promote use of alternative fertilizers such as Nano Urea and organic
fertilizer which protect the soil.

 Focus should be on use of new technology including drones and AI based decision support systems.

 There should be reduction in use of chemical fertilizers and use of low-cost organic inputs .
Conclusion :
• Need for sector-wide improvement in Agriculture sector and supporting the
country's entire farming community.
• Greater emphasis on small and marginal farmers.
• Need for an inclusive policy paradigm that focuses on alternative agricultural
practices and marginalized sections
• There is a need for adequate provisioning of resources by the Union
Government and State Budgets.
• Budgetary support for the agriculture sector should be redesigned to
complement the kind of support .