Expenditure on Agriculture and Allied Activities in Mountain States of India*

User Rating: Rating StarRating StarRating StarRating StarRating Star / 4
PoorBest 
DeliciousDeliciousDiggDiggFacebookFacebookLinkedinLinkedinRedditRedditStumbleUponStumbleUponTechnoratiTechnoratiTwitterTwitter

A large proportion of the population in the hills areas depends on agriculture and allied activities[1].Agriculture and allied activities involved the expenditure on crop husbandry, soil and water conservation, animal husbandry, Dairy Development Fisheries, Forestry and Wild Life, Plantations, Food Storage and Warehousing, Agricultural Research and Education, Agricultural Finance Institutions and Co-operation. 

 

 

 

 

Table 1.1

Expenditure on Agriculture and Allied activities as the percentage of total expenditure

States

Other States without mountain States

All Mountain States except Uttarakhand

Uttarakhand

2000-01

5.6

7.8

11.9

2001-02

5.1

7.2

11.1

2002-03

4.4

7.0

9.1

2003-04

3.9

6.5

9.1

2004-05

4.5

4.8

6.9

2005-06

4.2

6.4

8.0

2006-07

5.2

7.4

9.8

2007-08

5.9

8.4

9.4

2008-09

6.9

8.0

10.1

2009-10 RE

6.2

7.6

7.3

2010-11 BE

5.6

8.2

8.7

 

 

 

 

 

 

 

 

 

Source: Handbook of Statistics on State Government Finances-2010, RBI

State Finances: A Study of Budgets of 2011-12, RBI

 

Expenditure on agriculture and allied activities as the percentage of total expenditure decreased before the implementation of the Fiscal Responsibility and budget Management Act but after that it increased. In Uttarakhand, the expenditure on agriculture and allied activities has been increasing more as compared to the other States.

In the States other than the mountain States, the expenditure on agriculture and allied activities 5.6 percent of aggregate expenditure in 2000-01 which increased up to 6.9 percent of aggregate expenditure in the year 2008-09 but started decreasing after that and the budget estimate of the year 2010-11 shows that the expenditure on agriculture and allied activities reduced 5.6 percent of the aggregate expenditure. In all mountain States except Uttarakhand, the expenditure on agriculture and allied activities was 7.8 percent of aggregate expenditure in 2000-01 which then started declining till 2004-05 and reached to 4.8 percent of aggregate expenditure. After the implementation of the FRBM Act, the expenditure started increasing and went up to 8.4 percent of aggregate expenditure in the year 2007-08 but started declining since then and the budget estimates of 2010-11 shows the expenditure on agriculture and allied activities to be 8.2 percent of aggregate expenditure. In Uttarakhand, the expenditure was 11.9 percent of aggregate expenditure at the time of formation. This expenditure decreased since then and eventually went to 6.9 percent of aggregate expenditure in the year 2004-05 but after the implementation of the FRBM Act, it started increasing and as per the budget estimates of 2010-11, it reached to 8.7 percent of aggregate expenditure. Although the expenditure on agriculture and allied activities has increased in Uttarakhand but it was mainly on forestry and wild life.

 

 

*This article is based on the thesis “Fiscal Management in Mountain States of India: A Comparative Study of Uttarakhand and Other Mountain States in the Himalayan Region” submitted by the author to the department of economics, School of Social Sciences, Doon University in partial fulfillment for the award of Master in Economics.

 

 

 

References:

Ghosh, J. and Chandrasekhar C. P (2011), The Market that Failed: Neoliberal Economic Reforms in India, Leftword, Delhi.

Mohanty, S. S. (2004),"Fiscal Responsibility Act: Issues and Concerns", Countercurrents, [Online, Accessed on 12 June 2012] Available at http://www.countercurrents.org/eco-mohanty250404.htm

Mohanty,S. S. and Singh,R. G. (2007), “FRBM-A Review”, Centre for Budget and Governance Accountability, New Delhi , [Online, Accessed on 12 June 2012] Available at http://www.cbgaindia.org/files/primers_manuals/FRBM%20-%20A%20Review.pdf

Mohanty,S.S. and Chaturvedi,M.(2011), Uttarakhand Diagnostic Study of Building a Mountain State 2000-2010, GIZ and Doon University

Rangarajan, C. (2011), Report of the High Level Expert Committee on Efficient Management of Public Expenditure, Planning Commission, Government of India, New Delhi

RBI (2011), Handbook of Statistics of Indian Economy, Reserve Bank of India, [Online, Accessed  on 15/06/2012], Available at <http://www.rbi.org.in/scripts/AnnualPublications.aspx?head=Handbook%20of%20Statistics%20on%20Indian%20Economy>.

Report of the Committee Constituted to Review The List of Major and Minor Heads of Accounts (LMMHA) of Union and States (undated), Controller General of Accounts, [Online, Accessed on 12 June 2012] Available at http://finmin.nic.in/reports/sundaramurti_committee_report/Part_1_Main_Report.pdf

Tolia, R.S. (2012), A Planning Frame-work for the Mountain States of India, Centre for Public Policy, School Of Social Sciences , Doon University.

 

 

 

 

 

 


[1] Planning Commission, ‘Special Area Programmes, 9th Five Year Plan (Volume-2)’,  [Online, Accessed on 11/06/2012] available at  http://planningcommission.nic.in/plans/planrel/fiveyr/9th/vol2/v2c9.htm.




Leave your comments

Post comment as a guest

0 / 1500 Character restriction
Your text should be in between 50-1500 characters
terms and condition.
  • No comments found

Additional information