Abstract
One of the principal elements of the economic reforms program initiated in 1991 was to reduce the fiscal deficit of the central government which, at that time, faced a solvency crisis. This reduction was at least partially achieved by reducing transfers to state governments. As a result, state government budgets faced crises and agriculture, being largely a state subject, was denied adequate investment. This paper reviews the
performance of Indian agriculture, particularly in the post-reform period. It attributes this lacklustre performance to the stagnation of agricultural investment whereas there has been a contemporaneous rise in agricultural subsidies. Thus while current operations are being subsidised to some extent resource for augmentation of productive capacity in agriculture are dwindling.
Original language | English |
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Title of host publication | Development and Public Finance: Essays in Honour of Raja J. Chelliah |
Editors | D.K. Srivastava and U. Sankar |
Place of Publication | New Delhi |
Publisher | Sage Publications Inc |
Pages | 296-303 |
Edition | 1st |
ISBN (Print) | 9788132107422 |
Publication status | Published - 2012 |