Subsidy or saanp-seedhi? The curious case of unspent government funds

Why read this story?

Editor's note: If you are a regular reader of this newsletter or an ardent follower of the Indian economy, you must be aware of the deep-rooted structural malaise in Indian agriculture. It is baffling to think that one of the largest producers of food in the world is also home to one of the largest populations of hungry people. That hunger exists among the 60% of the population engaged in agriculture is even worse. Add to that the chronic lack of profit in farming and you have the sorry picture of farmers who are forever dependent on the governments for incentives and subsidies. It is in this light that the recent data from the Controller General of Accounts report for 2020-21 should be viewed. Especially the section that reveals massive unspent funds from budgets allocated for social sectors such as agriculture and farmers welfare, foods and public distribution, health and family welfare, school education, and women and child development, all of which affect our already struggling rural and farming populations. To imagine that this “significant saving” was happening during the COVID-19 pandemic-induced …