
As India's Budget 2026 approaches, speculation surrounds agricultural sector priorities. While agriculture is recognized as a growth engine, its share of government outlays has decreased and not kept pace with inflation. Experts suggest taxing agricultural incomes could provide necessary resources to boost productivity and resilience, especially amidst climate change. However, political parties fear backlash from powerful farmer vote banks, recalling past instances where farmer protests influenced policy decisions. The debate over taxing agricultural income has historical roots, with its political sensitivity increasing significantly since the late 1970s.
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