NEW DELHI: Finance minister Nirmala Sitharaman may announce an increase in income support to farmers under the flagship PM-Kisan scheme, which is currently fixed at Rs 6,000 annually, providing a boost to nearly 11 crore land-holding farmers across the nation.
The scheme, which was announced ahead of the 2019 elections, and was, along with the quota for economically weaker sections, seen as a game changer, may be revamped in the interim budget to be presented on February 1.Official sources told TOI that various options are on the table, which range from increasing the annual payment to either Rs 8,000 or Rs 9,000.
Govt may raise PM-Kisan aid for women farmers
The payment may be disbursed in four instalments of Rs 2,000 each in case of total annual amount of Rs 8,000 or in three instalments of Rs 3,000 each if it is increased to Rs 9,000, official sources added.
They also spoke about the possibility of giving a higher amount to women farmers and the annual amount in that case could be in the range of Rs 10,000-12,000.
This year, government has budgeted outgo of Rs 60,000 crore for PM-Kisan and depending on when the decision is implemented, the allocation will have to be increased. In 2019, the first instalment was paid before the end of the financial year in March, weeks before the first round of elections.
An increase to Rs 8,000 will increase the annual allocation to Rs 88,000 crore, while annual support of Rs 9,000 will cost Rs 99,000 crore.
Given that tax and other revenue receipts have been buoyant, resources are not seen to be a problem despite government’s commitment to stick to the fiscal deficit target of 5.9% of GDP for the current fiscal year and follow the glide path to lower deficit.
The budget session of Parliament is likely to commence on January 31, with President Droupadi Murmu addressing a joint sitting.
Farmers are seen to be a key constituency for government, which has vowed to double their income and shield them from the impact of high fertiliser and input prices through increased subsidy.
PM Kisan is seen to be providing liquidity with money transferred directly into the bank account of each landholder farmers’ family, in what is billed as one of the biggest direct benefit transfer schemes in the world.
In the last five years or so, government has disbursed over Rs 2.8 lakh crore in 15 instalments.
While the scheme was initially launched for only marginal and small farmers having land holding of maximum two hectares, it was later extended to all farmers, subject to certain exclusions, as part of the first Cabinet decision during the second term of Prime Minister Narendra Modi in May 2019.
The scheme, which was announced ahead of the 2019 elections, and was, along with the quota for economically weaker sections, seen as a game changer, may be revamped in the interim budget to be presented on February 1.Official sources told TOI that various options are on the table, which range from increasing the annual payment to either Rs 8,000 or Rs 9,000.
Govt may raise PM-Kisan aid for women farmers
The payment may be disbursed in four instalments of Rs 2,000 each in case of total annual amount of Rs 8,000 or in three instalments of Rs 3,000 each if it is increased to Rs 9,000, official sources added.
They also spoke about the possibility of giving a higher amount to women farmers and the annual amount in that case could be in the range of Rs 10,000-12,000.
This year, government has budgeted outgo of Rs 60,000 crore for PM-Kisan and depending on when the decision is implemented, the allocation will have to be increased. In 2019, the first instalment was paid before the end of the financial year in March, weeks before the first round of elections.
An increase to Rs 8,000 will increase the annual allocation to Rs 88,000 crore, while annual support of Rs 9,000 will cost Rs 99,000 crore.
Given that tax and other revenue receipts have been buoyant, resources are not seen to be a problem despite government’s commitment to stick to the fiscal deficit target of 5.9% of GDP for the current fiscal year and follow the glide path to lower deficit.
The budget session of Parliament is likely to commence on January 31, with President Droupadi Murmu addressing a joint sitting.
Farmers are seen to be a key constituency for government, which has vowed to double their income and shield them from the impact of high fertiliser and input prices through increased subsidy.
PM Kisan is seen to be providing liquidity with money transferred directly into the bank account of each landholder farmers’ family, in what is billed as one of the biggest direct benefit transfer schemes in the world.
In the last five years or so, government has disbursed over Rs 2.8 lakh crore in 15 instalments.
While the scheme was initially launched for only marginal and small farmers having land holding of maximum two hectares, it was later extended to all farmers, subject to certain exclusions, as part of the first Cabinet decision during the second term of Prime Minister Narendra Modi in May 2019.
