Agriculture as well as public sector enterprises are sensitive issues for the government

- The whole of economics: Dhawal Mehta

Agricultural infrastructure is weak while huge losses of public enterprises

The dream of a welfare state is unfulfilled

India's agricultural sector as well as the huge loss of public enterprises prevent India from becoming a welfare state. In India's current budget for 2020-2021, an amount of Rs 21,000 crore was allocated for fertilizer subsidy. Assuming that Finance Minister Sitaram's allocation of Rs 21,000 crore in the 2020-2021 budget is less, another Rs 5,000 crore has been allocated for fertilizer. The government will provide a subsidy of Rs 1,8,000 crore to farmers on fertilizer till March 31, 2021 and the backlog of subsidy to farmers by announcing a subsidy of Rs 30,000 crore in the 2021-207 budget. Has come. Against this, the Centre's budget for 2021-207 has allocated Rs 4.5 crore for education and Rs 21.3 crore for health sector. In India, 90% of the farms are less than one hectare (about two and a half acres) and 5% of the farms are less than two hectares (five acres). This is a structural problem of the agricultural sector of India. Although China's average farm size is smaller than India's, China's agricultural productivity is more than double that of India, which is why China's agricultural management is considered to be one of the highest in the world and we have poor agricultural infrastructure. A similar massive subsidy is allocated by the government for foodgrains (cheap foodgrains through rationing) which is Rs 4,6,000 crore for 2021-202 but the cheap foodgrains available through ration shops in India are a blessing for the poor so the rationing system can be opposed. No, but the budget for fertilizer subsidy is around Rs 50,000 crore. Add to that the very low cost electricity and water subsidies that add up to over Rs 100,000 crore. If it is used in the field of education and services, poverty can be eradicated from India more quickly.

White elephant of India

According to the latest CAG report, India's 12 loss-making central government enterprises had accumulated a combined accumulated loss of Rs 1,50,606 crore as on March 31, 2018. Out of these 12 loss making enterprises, 12 loss making public enterprises alone are F.V. In the year 2017 alone, it had incurred a loss of Rs 12.5 crore. Should we continue all these 12 central public enterprises and pay the losses out of the pockets of the citizens of India? Of the 12 loss-making public enterprises, the net worth of eight public enterprises was zero or below zero. The net worth of the above 5 loss-making public enterprises was a whopping Rs 4.5 crore (as on March 31, 2018). The total investment of the Central Government in all public enterprises is four lakh and nine hundred and nine crore rupees. Out of which the government has received a dividend of Rs 4,308 crore on 31-9-2017 but if the 12 loss-making public enterprises had created a surplus, the government could have used the dividend received to build a welfare state. We are not at all against public enterprises.

But if we close down loss-making public enterprises or sell them to private enterprises (in a way that does not harm their employees), the surplus money can be used to build more schools and hospitals, to provide clean water, tap gas or electricity to more people. Economics means 'More Allocation of Economic Resources'.