Complementarity between public and private capital formation in agriculture in Uttar Pradesh
2015
The agrarian economy of Uttar Pradesh continues to grapple with low productivity and lack of proper infrastructure. A lot has been said and discussed about the disparities across the state by several scholars. The concern on poor investment and the emerging regional and sectoral inequalities in Uttar Pradesh was also highlighted by some scholars and expressed concern over the declining public and private investment and increasing regional disparity in the state. So the `rediscovery’ of Uttar Pradesh is needed to bring out it from the level of BIMARU. This study has prepared a time series of capital expenditure in agriculture of state government of Uttar Pradesh including major heads associated with investment ‘in” agriculture or investment ‘for’ agriculture, examines the compositional shifts in capital formation in state agriculture on public account and deals with complementarity issue between public and private investment in agriculture in Uttar Pradesh. The study also concluded that the compound growth rate of gross capital formation in the state agriculture is declining continuously. The ratio of gross capital formation in state agriculture to net state domestic product at constant prices declined since 1980–81. The decline in plan expenditure in its turn can be traced to the sharp deterioration in the fiscal situation in the state of Uttar Pradesh witnessed since early nineties. This fiscal crisis has negative impact on public investment of economy, particularly in agriculture sector.
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