Delivering Subsidies where they belong'

1
Delivering Subsidies where they belong.

• 8th National Conference on E-GovernanceBhubaneswa
  r
• S.P.S Grover
• Oracle India

2
Good Governance
Increased Return on Tax

• Education
• Using IT to generate new skills
• Increasing IT skills to attract IT investments

Improving Delivery of Services- Building Citizen
/ Farmer Data Hub- Citizen facilitation center
for ULBs- Rural Interaction center - Municipal
Management
Infrastructure - Water Utilities- Electric
Utilities - Irrigation - Roads Transport
Delivering Subsidies where they Belong- Land
based subsidies like Water, Electricity, Agri
inputs, Agri credit, Drought relief etc..
Improve Fiscal Management- Key focus on Public
Expenditure Management
Complete E-Gov Architecture to enable the above
areas
Capacity Building Initiatives to Drive adoption
3
Subsidies in IndiaThe size, the incidence, the
allocation distortions, and the recent upsurge in
some subsidies are key issues in the context of
budgetary subsidies in India
4
Present Flow of Subsidies
Bank
Repay Loan
Avail Credit
Farmer
Government
Inputs
Input Provider
Price Subsidy
Subsidized Pyts
5
Interplay
Subsidies
Agriculture
Land Records
6
Land ManagementInterplay of several stakeholders
Govt. Departments
Agriculture Inputs (Seeds, Fertilizers,
Pesticides, etc,)
NARS / NAES (Research Institutes ICAR, SAUs,
KVKs, ATICs)
Revenue
Power
Banks / FI / Insurance
Food Agriculture
FARMERS (and Land)
Rural Development
Processing Units
Irrigation
Procurement and Market agencies
Pricing Agencies
Planning
7
Land RecordsComputerization must recognize the
interplay for better economic planning
8
Orthophotos Land ImagesCadastral Maps Land
MapsThematic Layers Land use
9
Land RecordsComputerization and Digitization

• Capture attributes to assist all stakeholders
• Digitization of Spatial Data
• Updating and Digitization of Cadastral Maps
• Plan for Ortho photos in the future using Aerial,
  GPS and/or Satellite imageries
• Common Platform for Alphanumeric and Spatial Data
• Access of data beyond village level kiosks Web
  and Handheld devices

10
HypothesisA key measure that could be adopted
for subsidy reforms is to move towards direct
payment of subsidies to the Farmers as a result
of the Claims that he makes against the inputs
that he pays for directly Fertilizer, Water,
and Power. Of course, the initial payment by the
farmer would be made by availing credit from the
Bank
11
Direct Flow of Subsidies
Bank
Repay Loan
Information
Avail Credit
Farmer
Payments
Government
Claims
Inputs
Input Provider
Normal Payments
12
Present Vs DirectRemoving Inefficiencies and
Allocation Distortions
X
13
BenefitsMore than usual ROI

• Putting the subsidy where it belongs
• Reduction of inefficiencies and harmful effects
  of subsidies
• Reduction of the NPAs and expansion of rural
  credit

14
Integrated Land and Agriculture ManagementKey
Beneficiaries and their Benefits

• Revenue department
• Accurate parcel boundaries
• Accurate information on crop, houses, trees etc.
• Cropping patterns, production estimates, disease
  and disaster affected areas
• Collection of revenues and taxes
• Sale, purchase and transfer details that can be
  viewed by Revenue Dept and also by public

15
Integrated Land and Agriculture ManagementKey
Beneficiaries and their Benefits

• Agriculture department
• Targeted technology inputs suited to a crop
• Targeted agri inputs - seed, fertilizers,
  pesticides, etc.
• Providing targeted extension support with
  research and other extension agencies
• Rural Development department
• Targeted employment generation programs
• Targeted subsidies power, water, etc.
• Assisting targeted credit

16
Integrated Land and Agriculture ManagementKey
Beneficiaries and their Benefits

• Animal Husbandry department
• Targeted animal husbandry support services
• IRDP support in consultation with Rural dept.
• Food department
• Effective procurement
• Targeted food security programs
• Private organizations
• Accurate bio-ecological information
• Accurate assessments of markets and production
  systems

17
Integrated Admin Control SystemsSome Examples
we can relate to

• UK
• Italy
• Greece
• Poland

• Ireland
• Netherlands
• Syria
• Slovakia

18
SummaryLand Information System coupled with an
Integrated Administration and Control System
would ensure a big benefit to the Farmer (above
all) by Putting the Subsidy where it Belongs
19
A