Covid policy response: Rural spending skyrockets, defence bears the brunt

Free provision of food, cash transfers, and jobs in villages see enhanced flow of funds despite a precipitous fall in revenue

Despite a precipitous fall of 40 per cent in tax collection, the central government has doubled its farm and rural sector spending in April and May, data released by the Controller General of Accounts (CGA) shows. The combined spending by the ministries of agriculture and rural development in April-May FY21 was Rs 91,355 crore, compared to Rs 44,054 crore in the same period of FY20.

The department of food and public distribution is not behind; it has spent Rs 10,000 crore in two months on capital infusion for food provisions, way higher than the annual capex allocation of Rs 2,000