Skip to main content

Event report: Rural realities and Union Budget 2022-23


By IMPRI Team
According to the Population Census of 2011, the percentage of people residing in rural areas is close to 69% of the Indian population. As per another report by the Government of India, the percentage of the Indian population that was situated Below the Poverty Line (BPL) in 2011-2012 amounted to 21.9%. Needless to say, people affected by rural poverty contribute to a large chunk of the percentage. Therefore, the development of rural areas in terms of economy and viability of professional options is much needed. Hence, to have a look at the Rural budget separately becomes of utmost importance.
To discuss the story of the rural realities, a panel discussion on Rural Realities and the Union Budget 2022-23 was organised by IMPRI Impact and Policy Research Institute, New Delhi under the series The State of Villages – #RuralRealities in the presence of Dr J. Dennis Rajakumar as the chair, Prof. C.S.C Sekhar, Himanshu Shekhar Mishra and Dr Jyotsna Jha as panelists.

Background

Dr J. Dennis Rajakumar initiated the discussion by explaining the importance of the rural economy, which in some way represents the Indian economy and hence, has always been a central subject in Budgets of the Government. He drew attention to how the Budget 2022-23 will impact the rural realities. He stated that the GDP has risen by 9.2% in 2021-22 against a 6% fall in 2020 due to massive lockdown and in 2022-23 is expected to grow by 8 to 8.5%. Discussing the reasons behind this increase, he spoke about the rise in the private final consumption level, which was drastically affected during the pandemic, and gross capital expenditure.
In rural India, almost 69% of the total population resides and 67% of the households are located in rural areas. So, the drop in private final consumption was a rural or urban phenomenon and remains a question. The dependence of almost 90% of the rural population on the informal sector with 80% on cash on employment led to an increase in the hardships for the poor due to the pandemic- induced lockdown and thus, there is a need to discuss of how this ‘booster budget’ would help in improving the present plight of the rural economy.

Employment Creation and Capacity Building

Dr Jyotsna Jha talked about the problem of unemployment rates, which are expected to be much higher than what was shown in the data. She also highlighted the fact that during the pandemic, women’s unemployment has grown much higher than men’s unemployment. She also expressed concern about the reduction in the allocation for MGNREGA, which has always been a source of rural unemployment for unskilled workers and has the ultimate aim of building infrastructure and maintaining the rural economy in line.
One of the main reasons behind the declining GDP during the pandemic is a fall in the consumption expenditure. Hence, as compared to the need for capital expenditure, which will help to increase employment in the long run, we need direct benefit transfers into the hands of those who will spend the complete amount and MGNREGA is a major scheme for the same.
She also drew attention towards education and nutrition which are of immense importance with the objective of increasing employment in the country. Programmes like E-Vidya announced in the financial blueprint would not benefit the students in the rural areas and there are many bottlenecks with the same, like inadequate number of teachers staffing and recruitment and hence low income in rural areas. Expanding her conversation to nutrition, she spoke about Aanganwadi which have always been a major employer of rural women but in the Budget, there hasn’t been any change or improvements in the same. The only sector which maintained steady growth during the pandemic is the agriculture sector and given the money and technology in their hands, it could help them to perform more efficiently. Hence, the rural sector shouldn’t be looked like a place for passive investment but a highly potential space of inclusive growth.

Status of Agricultural and its Potential

Prof. CSC Sekhar talked about two parts in the agriculture growth which are:
  • What led to growth in agriculture and
  • Growth in the subsections of agriculture
It is expected that agriculture would see a growth of 3.9% but disappointingly, there hasn’t been any specific allocation for the same. Along with agriculture, livestock and fisheries are also extremely important for the rural economy which wasn’t given the requisite attention. Additionally, stating the major sectors of income for rural India, he told that with a 55% increase in the income from livestock there has been a decline in income from the crop sector by 40%.
He also seemed to praise the government’s step towards increasing capital investment in agriculture through doubling the allocation for Rashtriya Krishi Vikas Yojana, increasing agriculture infrastructure fund by 150%, clubbing various projects under Krishi Unnati Yojana and ample allocation for Animal Disease programmes which is of utmost importance for the animal husbandry sector playing a major role in India’s rural economy. He also welcomed National Livestock Mission, Production Linked Incentive schemes that are immensely helping food processing industries and small scale industries.
Furthermore, the government’s concern towards food storage and warehousing is also appreciable and it could be evidenced from the Budget itself. However, the reduction in the allocation for the MGNREGA programme is premature. Talking about reforms and improvements for the agricultural growth, sir suggests increasing the use of the latest technology as the Government already seems to work for the same but at the same time, there is a need for the young population to build interest in farming and encouraging them to accept this sector with innovation.

Key Takeaways from the Budget 2022-23

Mr Himanshu Shekhar Mishra shared his experience with the farmers of western Uttar Pradesh and how, for the first time, Indian farmers have been at the forefront of Indian economical debate with the Agriculture Acts of 2020.
On the basis of such interactions, he put forth the expectations of the farmers from the Union Budget, 2022-23; some of them for increasing the fertilizer subsidy, having a strict rule for MSP allocation as the cost of production exceeds the income they are getting and containment of inflation, especially in rural areas, to ensure sustenance.
Moving on, he highlighted pointers from the latest Budget concerning agriculture: increase in the Ministry of Agriculture’s budget from 1,23,000 crores in 2021-22 to 1,32,000 crores in 2022-23; 2,37,000 crores of MSP payment to 1,63,000 crore farmers; 1,400 crores for the Ken Betwa Link project with more than 9,00,000 hectares of land being irrigated; chemical free natural farming; NABARD facilitating supply of more funds; use of Kisan Drones while spraying insecticides and pesticides; a rationalized scheme to increase oil seeds production inthe country; declaration of the year 2023 as the international year of millets, enhancing consumption of millet products; and finally, reducing the budget for MGNERGA.
Although the farmers were expecting more subsidies with respect to the fertilizers and pesticides, there was a cut for the same this year. Mr Mishra also explained how the demand of MGNREGA-related incentives went up during the first wave of COVID-19 as the country witnessed reverse migration and 1.14 crores migrant workers returned their homes, as per the February 2021 data by Mr Santosh Gangwar. Thus, on one hand, unemployment was shooting skies during the pandemic and on the other hand, there was an increase in allocation of 40,000 crores under the COVID-relief package announced by the Finance Minister.
He also mentioned about the lack of official real-time unemployment data which hampers the assessment and way forward. The Economic Survey for this year presented right before the Budget, also shows increased targeted cash-flow, Rs 16,50,000 crores, from agriculure due to the increased focus on infrastructure developments in agriculture.

Way forward

Post the panel discussion, questions were raised regarding the flexible nature of budget allocation under MGNERA. To which, Mr Mishra replied how MGNREGA is a demand driven scheme and inversely proportional to many variables, such as the state of monsoon. While answering another question, Mr Mishra explained the complex situation of MSP. Throughout the negotiation talks between the farmers’ unions and the government, one of the major demands was implementation of a rational law for MSP. Although the government promised formulating a new committee solely devoted to the issue, there has been no formal updates.
Extending this further, Prof SCS Sekhar suspended that MGNERGA, being a legal initiative confirms some incentive to those registered with it, be it in the form of an employment or as an unemployment allowance. However, if MSP is legalized, the failure in not getting satisfactory revenue or there are lack of deficiency payments, the farmers will incur huge losses as the cost of production in agriculture is much higher, making it a risky bet.
Answering the questions raised by out Chair, Dr Jyotsna Jha explained that how the gap between the wages from MGNREGA and wages from other work has deteriorated over the years. She also elaborated on the implications of health insurance schemes for the rural population due to the lack of infrastructure and awareness. The event was concluded with closing remarks by each panellist on whether the Union Budget 2022-23 heed to the revival of rural employment scenario and rual demand.

Comments

TRENDING

How the slogan Jai Bhim gained momentum as movement of popularity and revolution

By Dr Kapilendra Das*  India is an incomprehensible plural country loaded with diversities of religions, castes, cultures, languages, dialects, tribes, societies, costumes, etc. The Indians have good manners/etiquette (decent social conduct, gesture, courtesy, politeness) that build healthy relationships and take them ahead to life. In many parts of India, in many situations, and on formal occasions, it is common for people of India to express and exchange respect, greetings, and salutation for which we people usually use words and phrases like- Namaskar, Namaste, Pranam, Ram Ram, Jai Ram ji, Jai Sriram, Good morning, shubha sakal, Radhe Radhe, Jai Bajarangabali, Jai Gopal, Jai Jai, Supravat, Good night, Shuvaratri, Jai Bhole, Salaam walekam, Walekam salaam, Radhaswami, Namo Buddhaya, Jai Bhim, Hello, and so on. A soft attitude always creates strong relationships. A relationship should not depend only on spoken words. They should rely on understanding the unspoken feeling too. So w...

राजस्थान, मध्यप्रदेश, पश्चिम बंगाल, झारखंड और केरल फिसड्डी: जल जीवन मिशन के लक्ष्य को पाने समन्वित प्रयास जरूरी

- राज कुमार सिन्हा*  जल संसाधन से जुड़ी स्थायी समिति ने वर्तमान लोकसभा सत्र में पेश रिपोर्ट में बताया है कि "नल से जल" मिशन में राजस्थान, मध्यप्रदेश, पश्चिम बंगाल, झारखंड और केरल फिसड्डी साबित हुए हैं। जबकि देश के 11 राज्यों में शत-प्रतिशत ग्रामीणों को नल से जल आपूर्ति शुरू कर दी गई है। रिपोर्ट में समिति ने केंद्र सरकार को सिफारिश की है कि मिशन पुरा करने में राज्य सरकारों की समस्याओं पर गौर किया जाए। 

Censor Board's bullying delays 'Phule': A blow to India's democratic spirit

By Vidya Bhushan Rawat*  A film based on the life and legacy of Jyotiba Phule and Savitribai Phule was expected to release today. Instead, its release has been pushed to the last week of April. The reason? Protests by self-proclaimed guardians of caste pride—certain Brahmin groups—and forced edits demanded by a thoroughly discredited Censor Board.

PUCL files complaint with SC against Gujarat police, municipal authorities for 'unlawful' demolitions, custodial 'violence'

By A Representative   The People's Union for Civil Liberties (PUCL) has lodged a formal complaint with the Chief Justice of India, urging the Supreme Court to initiate suo-moto contempt proceedings against the police and municipal authorities in Ahmedabad, Gujarat. The complaint alleges that these officials have engaged in unlawful demolitions and custodial violence, in direct violation of a Supreme Court order issued in November 2024.

Aurangzeb’s last will recorded by his Maulvi: Allah shouldn't make anyone emperor

By Mohan Guruswamy  Aurangzeb’s grave is a simple slab open to the sky lying along the roadside at Khuldabad near Aurangabad. I once stopped by to marvel at the tomb of an Emperor of India whose empire was as large as Ashoka the Great's. It was only post 1857 when Victoria's domain exceeded this. The epitaph reads: "Az tila o nuqreh gar saazand gumbad aghniyaa! Bar mazaar e ghareebaan gumbad e gardun bas ast." (The rich may well construct domes of gold and silver on their graves. For the poor folks like me, the sky is enough to shelter my grave) The modest tomb of Aurangzeb is perhaps the least recognised legacies of the Mughal Emperor who ruled the land for fifty eventful years. He was not a builder having expended his long tenure in war and conquest. Towards the end of his reign and life, he realised the futility of it all. He wrote: "Allah should not make anyone an emperor. The most unfortunate person is he who becomes one." Aurangzeb’s last will was re...

Incarcerated for 2,424 days, Sudhir Dhawale combines Ambedkarism with Marxism

By Harsh Thakor   One of those who faced incarceration both under Congress and BJP rule, Sudhir Dhawale was arrested on June 6, 2018, one of the first six among the 16 people held in what became known as the Elgar Parishad case. After spending 2,424 days in incarceration, he became the ninth to be released from jail—alongside Rona Wilson, who walked free with him on January 24. The Bombay High Court granted them bail, citing the prolonged imprisonment without trial as a key factor. I will always remember the moments we spent together in Mumbai between 1998 and 2006, during public meetings and protests across a wide range of issues. Sudhir was unwavering in his commitment to Maoism, upholding the torch of B.R. Ambedkar, and resisting Brahmanical fascism. He sought to bridge the philosophies of Marxism and Ambedkarism. With boundless energy, he waved the banner of liberation, becoming the backbone of the revolutionary democratic centre in Mumbai and Maharashtra. He dedicated himself ...

Why crucifixion is a comprehensive message of political journey for the liberation of the oppressed

By Vijayan MJ  Passion week is that time of the year when Christians all over the world remind themselves about the sufferings, anguish, pain and the bloody crucifixion that Jesus Christ took on himself, as part of his mission of emancipating the people and establishing the kingdom of god. The crucifixion was not just a great symbolism of the personal sacrifice of one person, but it was a comprehensive messaging of a political journey for the liberation of the oppressed; one filled with struggle, militancy, celebration of life, rejection of temptations, betrayals, grief, the long-walk with the cross, crucifixion and ultimately resurrection as a symbol of victory over the oppressors and evil. 

CPM’s evaluation of BJP reflects its political character and its reluctance to take on battle against neo-fascism

By Harsh Thakor*  A controversial debate has emerged in the revolutionary camp regarding the Communist Party of India (Marxist)'s categorization of the Bharatiya Janata Party. Many Communists criticize the CPM’s reluctance to label the BJP as a fascist party and India as a fascist state. Various factors must be considered to arrive at an accurate assessment. Understanding the original meaning and historical development of fascism is essential, as well as analyzing how it manifests in the present global and national context.

Akhilesh Yadav’s boycott of Dainik Jagran: A step towards accountability or political rhetoric?

By Vidya Bhushan Rawat  Akhilesh Yadav has called for a total boycott of Dainik Jagran, a newspaper owned by the Gupta family. He also declared that the Samajwadi Party will no longer participate in any panel discussions organized by a media channel allegedly controlled by the family or relatives of the omnipresent Rajiv Shukla. Akhilesh Yadav and the Samajwadi Party are well aware that Dainik Jagran has long been antagonistic to Dalit-Bahujan interests. The newspaper represents a Bania-Brahmin corporate and ideological enterprise.

Implications of deaths of Maoist leaders G. Renuka and Ankeshwarapu Sarayya in Chhattisgarh

By Harsh Thakor*  In the wake of recent security operations in southern Chhattisgarh, two senior Maoist leaders, G. Renuka and Ankeshwarapu Sarayya, were killed. These operations, which took place amidst a historically significant Maoist presence, resulted in the deaths of 31 individuals on March 20th and 16 more three days prior.