New Delhi: The Union Budget 2007-08 is expected to focus more on the agricultural sector, since Government has admitted agriculture being a key constraint in stepping GDP growth.
The provision of Accelerated Irrigation Benefit Programme (AIBP) in various states is likely to be hiked by as much as 50 per cent.
An important new scheme that is likely to come up is about funding the Rainfed Area Development Programme. The run up to the Budget, saw many pulls and pressures among political heavyweights, like Agriculture Minister Sharad Pawar, Finance Minister P Chidambaram and Planning Commission Deputy Chairman Montek Singh Ahluwalia.
As against the 2006-07 Budget Estimates of Rs 4,800 crore, the Ministry had demanded an allocation of nearly Rs 7,500 crore.
There is a strong opinion in the official circles that there is need for an appropriate Minimum Support Prices (MSP) policy and the need for a supportive tariff policy.
Top officials in key economic ministeries accept that implementation of the MSP policy has been weak. It has failed when farmers were most in need. There have been too many cases in recent years when world prices have declined and compensating changes in tariffs have been unduly delayed.
All this has lent credence to the view that the World Trade Organisation and globalisation are against farmers’ interest and the government is no longer committed to supporting prices.
The sources said these concerns are likely to find their reflection in the coming Budget.
With inputs from UNI
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