Agriculture allocation up 58 per cent
The allocation for agriculture has been
stepped up by 58 per cent with the plan allocation for watershed
development programme increased to Rs 6.77 billion in the Budget
1998-99 presented by Finance Minister Yashwant Sinha.
Allocation for the Rural Infrastructure Development Fund
has been enhanced to Rs 30 billion.
The share capital of the National Bank for Agriculture and Rural
Development has been increased by Rs 5 billion. The
government will give Rs 1 billion from the Budget and the Reserve Bank of India will contribute the balance amount.
Nabard will expand the scope and coverage of the scheme for
promotion of self-help groups. With a target of 200,000 SHG
comprising of three million families in the next five years. This year
alone 10,000 SHG will be covered extending to 200,000 families.
The Budget has provided Rs 2.65 billion for rehabilitation and
recapitalisation of the regional rural banks. The sponsor banks have been given an enlarged role in providing management operational and restructuring support to the regional rural banks to meet the chronic problems of farmers' debts.
Sinha said the government will come out with a national
agricultural policy paper to meet the problems faced by the farmers due to laws and regulations in production, marketing and movement of agricultural commodities.
The government will also review existing control on exports of
all agriculture commodities barring foodgrains.
To strengthen the co-operative sector, the government will come
out with a model co-operative law to replace the multi-state
Co-operatives Act 1984.
Farm implements and tools have been excluded from the list of
items reserved for manufacture by small scale industries sector to
benefit farmers to avail wider range of implements at a competitive price.
The government plans to introduce futures trading in edible oil,
oil seeds and their cakes and to establish an efficient market
environment and to reduce volatility in prices in this sector.
Budget '98
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