About Lesson
A.7. Issues related to farm subsidies in general
- According to the Economic Survey 2018, wealthy farmers gain more from farm subsidies than small farmers.
- Only roughly Rs. 3000-4000 crore of the Rs. 1.70 lakh crore allocated for food subsidies in the budget for 2018–19 was invested in agriculture, demonstrating wasteful spending rather than the assistance of agriculture.
- The financial exchequer is burdened by subsidies, which result in a significant financial deficit.
- Subsidy culture may encourage inefficiency and reliance on the government while weakening incentives for improvement.
- Subsidy policies may encourage other nations to pursue similar goals, which could result in trade conflicts and protectionist measures.
[Title : Expenditures on major agricultural subsidies]