The recent budget allocation from the Centre for agriculture, education, and health has seen a decline, while funding for urban housing has increased, as indicated by a report from a parliamentary committee.
According to the Demand for Grants report released by the Standing Committee on Agriculture, Animal Husbandry, and Food Processing, the portion of the budget dedicated to the Department of Agriculture and Farmers Welfare has decreased to 2.54% of the total Central Plan for the fiscal year 2024-25, down from 3.53% in 2021-22. Likewise, the Department of School Education and Literacy’s share has slightly diminished from 1.57% to 1.51%, and the Department of Health and Family Welfare’s allocation has dropped from 2.04% to 1.82%.
Conversely, the Ministry of Housing and Urban Affairs has experienced a growth in its share of the total Central Plan, rising from 1.56% in 2021-22 to 1.71% in 2024-25.
The committee has voiced concerns regarding the continuous decline in agricultural funding as a percentage of the Central Plan, despite an overall increase in the absolute allocation. With the provisional estimates showing a reduction in agriculture’s growth rate to just 1.4% in 2023-24—the lowest in seven years—this trend is worrying, especially considering the average growth rate of 4.18% over the past four years. The committee warns that this ongoing decrease in agricultural funding could further exacerbate the decline in agricultural growth.
Given agriculture’s vital role in ensuring livelihoods for a significant portion of the rural population, generating employment, and maintaining food security, the committee urges the government to boost investment in agriculture, particularly to enhance productivity.
Additionally, the committee recommended changing the name of the “Department of Agriculture and Farmers Welfare” to “Department of Agriculture, Farmers & Farm Labourers Welfare” to better reflect its focus.
It also suggested that the support provided under the PM-KISAN scheme be increased from the current ₹6,000 to ₹12,000 annually. Furthermore, the committee advocated for extending seasonal incentives to tenant farmers and farm laborers.
The panel also endorsed the idea of establishing a legal guarantee for the minimum support price (MSP). They stated, “Implementing a legally binding MSP in India is crucial not only for protecting farmers’ livelihoods but also for fostering rural economic growth and enhancing national food security. The benefits of legally guaranteeing MSP far outweigh the challenges, as it would stimulate economic activity in rural areas, benefiting local enterprises and communities.”
