Union Budget 2019 for Agriculture Sector: The Narendra Modi government on Friday announced income support of Rs 6,000 per year for farmers with land up to 2 hectares, taking the Interim Budget as an opportunity to woo farm voters ahead of the upcoming Lok Sabha polls at an estimated expense of Rs 75,000 crore per year.
“Under the Pradhan Mantri Kisan Samman Nidhi, Rs 6,000 per year — in three instalments — to be transferred directly to bank accounts of farmers with less than 2 hectares landholding,” Finance Minister Piyush Goyal said in the Budget 2019 speech, adding that the scheme will be funded fully by the central government.
“About 12 crore farmer families will benefit from it from December 1, 2018,” the FM said. The income support scheme for ailing farmers was widely anticipated as the Bharatiya Janata Party (BJP) government lost three crucial elections in heartland states, while the opposition Congress gained, arguably, on the promise of farm loan waivers.
The government also announced relief for farmers affected by natural disasters and reward for those repaying their loans on time. “Instead of rescheduling of crop loans, the farmers severely affected by natural calamities will get 2% interest subvention and additional 3% interest subvention upon timely repayment,” Goyal said in the Lok Sabha, while presenting his maiden, and the Narendra Modi government’s last Budget of the five-year tenure.
The income support announcement made largely along the lines of Telangana’s Rythu Bandhu and Odisha’s Kalia plans — which witnessed immediate success –, however, falls short of expectations. “The Rs 6,000 per annum payout to farmers fall short of Odisha’s Kalia scheme that pays Rs 10,000 per year and Rythu Bandhu that offers Rs 8,000 per year.” said policy expert Priyaranjan Dash.