Fiscal Federalism and Agricultural Reform: Haryana’s Push for Targeted Central Funding

At the recent national conference of Finance Ministers, the Haryana government emphasized the necessity of recalibrating central fiscal support to address the evolving challenges of the agrarian sector. The state’s proposal highlights a strategic shift toward sustainable farming practices, specifically requesting a dedicated financial package to incentivize natural farming. This move aligns with the broader national objective of reducing chemical dependency in agriculture while ensuring long-term soil health and environmental sustainability. A cornerstone of Haryana’s argument for increased funding is the proven efficacy of its digital infrastructure, particularly the 'Mera Fasal Mera Byora' portal. By digitizing the procurement and subsidy distribution process, the state has demonstrated how technology can minimize leakages and ensure that fiscal benefits reach the intended beneficiaries directly. This model of e-governance serves as a template for other states to improve the transparency and accountability of public expenditure in the agricultural sector. Furthermore, the state’s focus on water security and green energy financing underscores the critical intersection of climate change adaptation and rural economic stability. As states grapple with depleting groundwater levels and the need for energy-efficient irrigation, the demand for central intervention reflects the limitations of state-level budgets in funding large-scale, capital-intensive green transitions.