In the agricultural front, government have been working on several projects to produce healthy farms.Keeping in mind the future demands the Centre as well as the states government have been introducing new schemes and plans to educate farmers and build a healthy farming future.
Recently, the Centre has been working on food and fertiliser subsidy reforms and will unveil more steps to deal with the mounting problem of non-performing loans of PSU banks, a top finance ministry official said, as he asserted there was no drift in economic decision-making.
The economy is showing some signs of pickup and the government is trying to maximise disinvestment receipts in the current year, said Economic Affairs Secretary Shaktikanta Das.
Das said that the shortfall in government revenues, if any, will be minimal and capital spending or plan spending will not be cut. Last week, the government announced a pilot scheme for direct benefit transfer of kerosene subsidy.
Das said the government was working on a policy to reform food and fertiliser subsidy, which is pegged at Rs 2 lakh crore this year and which accounts for about 80 percent of the total subsidy bill.
"Various possibilities are under consideration for food and fertiliser," Das said. "There is a need for subsidy reform, at the same time you have to take into account state of the rural economy, as well as state of farming community."
The DEA (Department of Economic Affairs) secretary, charged with managing the country’s economy, admitted that bad loans of state-run banks – impaired assets stand at 12.6 percent of advances – are a problem but says the government is working on it.
"The department of financial services is considering various options and you will see a lot of decisions and action on that front from the government side," Das said.
In the last couple of months, some rating agencies have expressed reservations about the pace of economic reforms.