In order to boost farm sector growth and make it sustainable and self-sufficient, Finance Minister Arun Jaitley made a case for blending subsidy with investment. He said formalisation of the economy has started showing visible result in terms of higher resource mobilisation, leaving more in the hands of the government for the capital formation in various sector. He added that as India moves into the situation where governments have more resources, the ability to spend on sectors, which needs maximum support, will obviously rise.
Finance Minister noted important areas which require investment include physical infrastructure, social sector and farm sector. He said as resources grow, the capital and development expenditure will increase. Hopefully, the resource crunch to spend in these areas will not be there. As a result, in order to make investments in agriculture in terms of subsidy support, price support, crop insurance support or the interest subvention support, the government year after year has taken conditional steps.
Jaitley said he do see a point on blending the subsidy support with the investment because, to have a model which sustains indefinitely only on subsidy will not be a sustainable model. Investments will make farm sector self-sufficient on ground. With much lesser subsidies a self-sufficient farmer may be able to serve the cause of Indian agriculture much better.
On the growth, he said India has grown at reasonable pace in the last quarter century. He said ‘We have now acquired position when we are growing much faster than the rest of the world and hopefully there are various avenues of further generating this growth. There are regions in the country that have not grown well in the past therefore there is lot of potential for growth.’ Observing that public discourse occasionally gets impacted by populism, he said, good politics has to be blended with sound and rational policy.
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