Budget-Eve Report Pegs GDP growth at 5.4-5.9% this fiscal
Says need to recast subsidy plan

Asking him to reconsider budget cuts for the government’s flagship social sector schemes, including guranted work for people in rural areas under the Mahatma Gandhi National Rural Employment Guaran

The expenditure squeeze being enforced for 2012-13 and the likely freezing of the Budget size for 2013-14 could impact many welfare schemes run by the ministry of rural development (MRD) the most, although the UPA's showpiece Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) might be spared.

With economic prospects deteriorating more than initially expected by the government, the finance ministry is cutting down the budgetary allocation for this fiscal to popular schemes like Pradhan Mantri Gram Sadak Yojana (PMGSY), Indira Awaas Yojana and National Rural Livelihood Mission (NRLM) by 20-25%, sources said. These cut would be seen in the revised estimate in the Budget.

New Delhi: In a bid to help small farmers get better price realisation, the National Advisory Council (NAC) has recommended the creation of ‘farmers companies’ with the support of the government, which would deal with critical issues such as market linkage and value-addition in the farm sector.

In a recent meeting, the NAC, headed by UPA-II chairperson Sonia Gandhi, urged the government to provide financial support for creation of farm producers’ companies under the existing Centrally Sponsored Schemes (CSS) for the farm sector.