Following the recommendations of the 14th Finance Commission, the Central government decided to increase the share of states in the overall government finances.
However, a report prepared by Kotak shows that while the states’ expenditure on irrigation has jumped from around Rs 20,000 crore in 2000 to over Rs 98,000 crore in 2014, there has been a limited increase in the net irrigated area.
The report states that capital expenditure by states needs a closer look, especially, as they will play an increasingly larger role in economic development and overall government spending given their larger share of overall government finances.
* Rs6,75,000 crore Aggregate spend on irrigation by state governments over the last ten years between FY06 and FY15.
* 10.3%: Compounded annual growth in state government’s spend on irrigation between FY06 and FY15
* 1.3% is the compounded annual growth rate in total irrigated area between FY96 and FY11. According to the agriculture census data, there has only been a marginal rise from 37% to 45% in the sown area being irrigated now.
* Rs3,600 crore: Total outlay by the Central government for FY16 Budget estimate under various schemes for irrigation. States are primarily responsible for irrigation as water is a state subject.
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