Abstract
The rationale behind allocation of public resources stems from the benefit approach. This approach emphasises that while some expenditures provide general benefits such as on social goods (e.g. defence and justice), others offer specific benefits in the realms of education, agriculture, public health, industry, and infrastructure
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Notes
- 1.
A recent study by the World Bank (2014) indicates that subsidy-driven input use is now adversely affecting total factor productivity. Subsidies may also be contributing to lower productivity, compromising sustainability and future productivity growth. This finding requires further probing, as the withdrawal of fertiliser subsidies would reduce foodgrain production by an estimated 8% (Chand and Pandey 2008), which is especially detrimental given the massive requirements of food stock for distribution under the National Food Security Act, 2013.
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Bathla, S., Joshi, P., Kumar, A. (2020). Contextualising Public Intervention in Agriculture and Welfare Effects. In: Agricultural Growth and Rural Poverty Reduction in India. India Studies in Business and Economics. Springer, Singapore. https://doi.org/10.1007/978-981-15-3584-0_2
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