Budget 2023: Launched ahead of 2019 LS polls, PM-Kisan allocation lowest in five years

The budgetary allocation of the PM-Kisan for 2023-24, which was announced in the interim budget of 2019-20 just ahead of the 2019 Lok Sabha elections, is the lowest in last five years.

The Modi government had launched the PM-Kisan from the December-March, 2018-19 period. Under the PM-KISAN scheme, the government provides Rs 6,000 to the eligible beneficiary farmer families in a year and the amount is transferred in their bank accounts in three equal 4-monthly instalments of Rs 2,000 each. So far, 12 instalments have been released under the PM-Kisan. The instalment for December-March (2022-23) is due from December 1, 2022.

The PM-Kisan’s budgetary allocation reached at the highest level during 2019-20 and 2020-21, but since then it has come down.

According to sources, the reduction in the PM-Kisan budget is due to a drop in the number of the scheme beneficiaries. In the latest round (12th) of the PM-Kisan, 8.42-crore farmers received their instalments for the four-month’s period of August-November, 2022. This was significantly lower as compared to the number of beneficiaries (10.45 crore ) during the 11th period (April-July, 2022).

During her speech, Sitharaman mentioned the PM-Kisan at once. “Cash transfer of Rs 2.2-lakh crore to over 11.4 crore farmers under PM Kisan Samman Nidhi,” she said.

The PM-Kisan is the biggest scheme of the Ministry of Agriculture and Farmers’ Welfare. With the decline in the PM-Kisan budget, the overall budget of the Agriculture Ministry has also come down from Rs 1,32,513.62 crore in 2022-23 to Rs 1,25,035.79 crore in 2023-24.

Among the other agriculture sector schemes, the budgetary allocation of Pradhan Mantri Krishi Sinchai Yojna has been reduced to Rs 10,787 for 2023-24 from Rs 12,954 crore in the BE 2022-23. However, it is higher than RE of Rs 8,085 for the year 2022-23.

The budgetary allocation of the Crop Insurance Scheme — Pradhan Mantri Fasal Bima Yojana— has been kept at Rs 13,625 for 2023-24, which is lower than the BE of Rs 15,500 for 2022-23. However, it is marginally higher than the RE of Rs 12,376 crore during the current financial year.

The allocation of the Modified Interest Subvention Scheme (MISS), however, has been increased to Rs 23,000 crore for 2023-24 from Rs 19,500 crore in 2022-23. Under Modified Interest Subvention Scheme, short term crop loan up to Rs 3 lakh is provided to farmers at an effective rate of interest of 4 per cent per annum.

In her budget speech, the Finance Minister announced that the agriculture credit target will be increased to Rs 20 lakh crore with focus on animal husbandry, dairy and fisheries during 2023-24.

The Finance Minister also announced the establishment of a Digital Public Infrastructure for Agriculture.

“Digital public infrastructure for agriculture will be built as an open source, open standard and inter operable public good. This will enable inclusive, farmer-centric solutions through relevant information services for crop planning and health, improved access to farm inputs, credit, and insurance, help for crop estimation, market intelligence, and support for growth of agri-tech industry and start-ups,” she said.

She also announced setting up of an Agriculture Accelerator Fund, and a Atmanirbhar Horticulture Clean Plant Programme with an outlay of Rs 2,200 crore. The Finance Minister also said that to make India a global hub for ‘Shree Anna’, the Indian Institute of Millet Research, Hyderabad, will be supported as the Centre of Excellence for sharing best practices, research and technologies at the international level.

The Finance Minister also announced a new sub-scheme of PM Matsya Sampada Yojana with a targeted investment of Rs 6,000 crore to further enable activities of fishermen, fish vendors, and micro & small enterprises, improve value chain efficiencies, and expand the market.

Union Budget 2023: All you need to know

• ↗️ Finance Minister Nirmala Sitharaman’s Union Budget 2023 has some big takeaways
• ↗️ First, what everyone has been looking forward to: changes in the new income tax regime. She has made the new tax regime more attractive. There are changes in the rebate limit and in tax slabs. What does this mean for the taxpayer?
• ↗️ FM Sitharaman proposed a 33% increase in capital investment outlay, raising it to Rs 10 lakh crore. This is the biggest in the past decade. What does it mean?
• ↗️ Some articles get cheaper and others get costlier due to changes in customs duty. Here is a list
• ↗️ The capital outlay for the railways has been increased to the highest ever – Rs 2.40 lakh crore. The government is trying to create more jobs
• ↗️ FM Sitharaman said the fiscal deficit will fall to 5.9% of the GDP. What does it mean for the stakeholders?
• ↗️ The FM called it the ‘first Budget of Amrit Kaal’. PM Narendra Modi said it will build a strong foundation for a developed India. What did opposition leaders say?