Public Sector Spending-A Way to Agriculture Development in Telangana

Background: Telangana economy has made significant progress in agricultural sector since its formation by recording 7.4% annual average growth rate. Agricultural sector plays a vital role in the development and shaping of a golden Telangana. This sector provides food security and supplies raw material for industries and provides large employment that 74% of rural population is still dependent on agriculture and allied activities.

Objectives:This study are to know the need of public spending in agricultural sector in Telangana in India, to examine the public spending towards agricultural sector since 2014 and to make appropriate suggestions to accelerate agricultural growth rate.

Method of the study: The method of the study depended on secondary source. The data and figures regarding growth rates and budget allocations obtained from secondary source carefully analyzed and compared.

Findings: The study discovered that the overall budget allocations are increased towards agriculture from ₹17371 crores to 37035 crores from 2014-15 to 2018-19.It is also found that due to round the clock power supply and providing adequate irrigation water the paddy production was increased from 24 lakh tones in 2014- 15 to 54 lakh tones in 2017-18. The Government has started Mission Kakatiya in 2014 with the objective to revive 28652 tanks. With this the storage capacity increased to 3.88 TMC. It is decided by investing on major and minor irrigation projects a large amount to utilize the state’s share from Godavari and Krishna rivers. In 2018-19 ₹25000 crores are allocated for irrigation projects. It is found that Telangana state is the first state to spend ₹80000 crores on irrigation projects in India. For the last four years ₹65000 crores are allocated to irrigation sector. This is equal to 10 years of the budget allocation to various projects under Jalayagnamstarted in 2004.Farmers Investment Support Scheme (FISS) named as RytuBandu was started to provide financial assistance ₹10000 per acre per year which can be utilized by the farmers on purchase of seeds, fertilizers and wages of agricultural labourers.

Application: It is worth noting suggestion that MGNREGP should be linked up with agriculture sector and 50% of the wages of the labourers should be paid through MGNREGS. Rytu Samanwaya Samithis which are constituted in Telangana should take active role regarding minimum support prices, storages facilities, marketing facilities and crop loans. The Government should not ignore the tenant farmers. The tenant farmers should be given identity cards to get facilities from the government. When the Governments fail to provide remunerative prices to agricultural products, the farmers have to be supported by many ways through public spending.