Budget 2022: According to official sources, the Modi government is likely to increase the payout to farmers under the PM Kisan Yojana in the upcoming budget to Rs 8000 per year from Rs 6000 per annum. Finance Minister Nirmala Sitharaman is set to announce the Union Budget 2022 on February 1.
The budget allocation to the farming community will be made in the backdrop of the repeal of the 3 agriculture laws and the upcoming elections in 5 states — Punjab, Uttar Pradesh, Uttarakhand, Manipur and Goa. Sources informed that several policy measures benefiting the farmers are expected to be announced in the budget 2022.
It is expected that the allocation under Government’s most ambitious scheme – Pradhan Mantri Kisan Samman Nidhi Yojana, which benefits more than 10 crore farmers will be increased from Rs 65,000 crore in the last budget.
Besides, Sitharaman can also announce the setting up of a panel on minimum support price (MSP) for all crops, the main demand of the protesting farmers. It must be noted that PM Narendra Modi, while repealing the farm laws, had announced to set up a committee on MSP.
Government to Increase Farm Credit Target
Sources further told that the Modi government may also increase the farm credit target to about Rs 18 lakh crore in the budget. For the current financial year, the Centre has set a credit target of Rs. 16.5 lakh crore.
The Centre decides annual agriculture credit that includes crop loan targets for the banking sector. The agricultural credit flow has increased constantly over the years, exceeding the target set for every fiscal.
Moreover, the government is offering a 2% interest subsidy to ensure that farmers get short-term loans of up to Rs 3 lakh at an effective rate of 7% per annum. An extra incentive of 3% is given to the farmers for quick repayment of loans within the due date, making the effective interest rate 4%.
It is assumed that the Modi government can increase the interest subsidy and also additional incentives to ensure the timely payment of the loans.
About PM Kisan Scheme
Under PM Kisan Yojana, the Government provides Rs. 6000 per year to the farmers in three installments. To help the farmers in this ongoing pandemic, the Modi government is planning to increase the money disbursed under the scheme. This means farmers are likely to get Rs. 8000 per year from the FY2022.
