"Subsidies put a huge burden on the government finances but are necessary for poor and marginal farmers." Explain.

Open in App

Solution

1. The government should continue with agricultural subsidies as farming in India continues to be a risky business.

2. Majority of the farmers are very poor and will not be able to afford the required inputs without the subsidies.

3. Eliminating subsidies bill increase the income and inequality between rich and poor farmers and violate the ultimate goal of equity.

Suggest Corrections

Similar questions

While subsidies encourage farmers to use new technology, they are a huge burden on government finances. Discuss the usefulness of subsidies in the light of this fact.

"While subsidies encourage farmers to use new technology, they are a huge burden on government finances". Discuss the usefulness of subsidies in the light of this fact.

Q. How does the government giving subsidies to poor farmers impact the public?

A government report on farmers’ problems says that small and marginal farmers cannot get good prices from the market. It recommends that the government should intervene to ensure a better price but only for small and marginal farmers. Is this recommendation consistent with the principle of equality?

Q. Read the following statements carefully and choose the correct answer from the following:
Statement 1: Subsidies reduce the income inequality between rich and poor farmers and to achieve the ultimate goal of equity.

Statement 2: Necessary steps should be taken to ensure that every farmer enjoys the benefits of subsidies.

[0.80 marks]

Join BYJU'S Learning Program