As widely expected, Interim Finance Minister Piyush Goyal while unveiling the Interim Budget 2019 on Friday, announced a modest farm support scheme for poor farmers. Goyal announced a relief package of Rs 75,000 crore under PM Kisaan Samman Nidhi scheme for distressed farmers who have seen their incomes stagnate because of plunging prices, barely enough to pay for loans and input costs.
As part of the package, which includes an income support scheme, government will transfer a sum of Rs 6,000 per year to farmers who own upto 2 hectares of land.
“Assured income to be transferred via Direct Benefit Transfer in three equal instalments,” Goyal said while presenting the interim budget 2019-20.
After the farm loan waivers announced in a few states by the Congress party, the Narendra Modi government seemed to be under pressure to offer relief to farmers especially because the next general elections are just a few months away.
The scheme will benefit about 12 crore farmers. Goyal also said that the support will be disbursed in equal installments of Rs 2,000 each and it will be funded completely by the government of India.
The Finance Ministry also raised allocation under MNREGA to Rs 60,000 crore for FY20. Another Rs 19,000 crore has been provided under the rural roads scheme for FY20. The FM also increased allocation under the Gokul Scheme to Rs 750 crore.
The scheme was announced amid chants of ‘Jai Kisan’ in the Parliament.