GS Paper - 3 (Economy)

On 14 August 2021, Tamil Nadu will become the second state after Andhra Pradesh to have a separate agricultural budget. Data available from Andhra Pradesh indicates that such a move might actually boost the sector. The tradition of having an exclusive budget for agriculture was started by Andhra Pradesh in 2012-13, in order to give a focused approach to the sector, terming it as a policy paper on agriculture. Though states like Telangana, Rajasthan and Bihar too had similar plans, they did not take off due to various legal and technical reasons.


  1. Telangana had backed out of a plan of having a separate budget citing Rule 150 of the legislative guidelines which states that only receipts and expenditure were treated as budget.
  2. Telangana was of the view that other plans, programmes and schemes would come under bills and could not be treated as separate budgets.
  3. Article 202 of the Constitution of India enables states to issue an estimated statement of receipts and expenditure for a financial year (commonly referred to as ‘Budget’ or ‘Annual Financial Statement’).
  4. Based on the 2015-16 Agriculture Census, around 70 per cent of the state’s population is still dependent on agriculture, while it has set an ambitious target of achieving 12.5 million metric tonnes of food grain production during 2021-22.
  5. Based on the latest data available with the Directorate of Economics and Statistics, out of the total 93,607 rural families in the state, about 32,443 or 34.7 per cent are dependent on agriculture.