For farmers, Union budget increasingly a ritual

The year 2026 is a significant one for India's economy.

- AJAY VIR JAKHAR

The Union Budget will matter, of course, but the Eighth Pay Commission and the Sixteenth Finance Commission are the most consequential milestones to watch.These are followed by the two government expert panels led by Rajiv Gauba: one for realizing Viksit Bharat goals, and the other for non-financial sector regulatory reforms. Also, the strategic choices India makes in trade negotiations with the US and EU, which may quietly lock us into external standards on food safety, data regulation and compliance regimes, may not be in our interests.

For Indian farmers, the Budget has increasingly become a ritual rather than a remedy. Either the finance ministry does not heed the agriculture ministry, or the agriculture ministry fails to marshal a convincing case. Sometimes, budget announcements can remain statements of intent. Last year's promised increase in the Kisan Credit Card limit from ₹3 lakh to ₹5 lakh is yet to be notified.

This is not to suggest a lack of boldness at the top. New ideas have been tried. Naturally, sometimes programmes underperform, or over time circumstances change. But political exigency to continue with failing programs narrows the political headroom for reforms, and the system enters a vicious loop: weak outcomes feed electoral anxiety, which in turn fuels populism. Finally, populism and fiscal problems feed on each other, making it harder to govern.