State Budgetary Resources and Agricultural Development in West Bengal

The objectives of this paper are to analyze the trends in budgetary allocation of resources to the agricultural sector as a whole and the sub-sectors of agriculture, in particular, in West Bengal and to study the nexus between state budgetary support to agricultural and agricultural development in West Bengal. The deceleration in the real government expenditure on agriculture in West Bengal is being associated with decline in the growth rate in the agricultural output particularly the food grain output and slowing down the rate of poverty reduction. This has raised serious concern because of the linkages of public expenditure with agricultural growth and poverty in rural area. There is a pressing need for a more fundamental change in strategy to raise resources and accelerate the pace of agricultural development. The government needs to concentrate on rectifying the inefficiencies which may induce more private investments. Additional resources need to be mobilised through larger support from the Union government and by increasing user charges on electricity and irrigation.