Budget announces Rs 75000 crore farm income support scheme

The interim budget presented by the interim FM Piyush Goyal announced a historical farm income support scheme for the small and marginal farmers with an allocation of Rs 75000 crores.

The scheme announced just three months from the general election, proposes an annual transfer of Rs 6000 in three phases to farmers with a farm size of upto 2 hectares.

Scheme is titled as Pradhan Mantri Kisan Samman Nidhi.

Following are the main features of the scheme:

  • Benefits to farmers who owns upto 2 hecatres.
  • Income transfer of Rs 6000 during a year in three instalments.
  • The PMKSN is a 100% central government funded scheme.
  • Total allocation is Rs 75000 crores.

The scheme is one of the biggest support schemes to any sector in the budgetary history of the country.

Early estimates indicate that the scheme will make additional pressure 0.26% of GDP on the fiscal deficit front.