NEW DELHI, June 1: Even as Finance Minister Yashwant Sinha hiked agriculture outlay by a whopping 58 per cent, a jubilant Agriculture Minister Som Pal echoed his colleague, saying that it had been done in order to "reverse the decline in agriculture and strengthen the rural economy". The rural sector, in the current budget, will see a number of innovative schemes like Kisan Credit Cards (based on their land holdings), futures trading in oilseeds, a new insurance policy and a whole new National Policy on Agriculture which will be announced in July. Steps have also been taken to remove restrictions on production and marketing of produce to enable farmers to access global markets.In order to revitalise the agricultural cooperative sector, the Government will shortly bring a model cooperative law to replace the Multi-State Cooperative Societies Act, 1984, to reduce "political interference and unwarranted bureaucratic control".
The plan outlay for the Ministry of Agriculture has shot up from Rs 1,807 crore in1997-98 (revised estimate) to Rs 2,854 crore in 1998-99. For the agriculture sector as a whole, the outlay has gone up from Rs 2,756 crore to Rs 3,864 crore.
"The budget is in consonance with our determination to spend 60 per cent of plan funds on the rural areas. We have made a beginning and will be increasing our funding progressively," Som Pal said.
Top priority is being accorded to watershed development of rainfed areas, where funding has been hiked from Rs 517 crore to 677 crore, Som Pal said, detailing the provisions in the budget. In addition, there is a 57 per cent extra allocation for the accelerated irrigation benefit programme.
This will lead to quicker completion of projects, increase in irrigated area resulting in higher productivity and production. Allocation for Rural Infrastructure Development Fund has been enhanced by Rs 500 crore to Rs 3,000 crore. The share capital of the National Bank for Agriculture and Rural Development (NABARD) has also been increased by Rs 500 crore. TheGovernment will give Rs 100 crore from the budget and the Reserve Bank of India will contribute the balance amount.
The budget has provided Rs 265 crore for rehabilitation and recapitalisation of the regional rural banks. The sponsor banks are being given enlarged role in providing management operational and restructuring support to meet the chronic problems of farmers' debts.
No farmer should go to jail for non-payment of loans or be forced to commit suicide due to depredation, the Finance Minister said. The Government would issue appropriate guidelines to banks for hassle free settlement of cases of overdues, he added.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
