As expected, interim finance minister Piyush Goyal on Friday announced a massive farm relief package in the interim budget. The Rs 75,000-crore PM Kisan Samman Nidhi Programme will provide Rs 6,000 to farmers owning lander under 2 hectares.
The scheme will have the Rs 6,000 transferred directly to farmers’ accounts in three installments, Goyals said, adding that the entire cost of Rs 75,000 crore for FY20 will be borne by the central government.
The government believes the PM Kisaan Samman Nidhi programme will meet the "emerging needs of the farmers, especially ahead of the harvest season and help them lead respectable and dignified lives, in the years to come."
By announcing this scheme, the centre seems to have embraced the Rythu Bandhu scheme which was introduced by Telangana government in 2018.
Telangana has introduced Rythu Bandhu or Farmers’ Investment Support Scheme, under which the assistance of Rs 8,000 an acre to all eligible farmers in two installments of Rs 4,000 each would be given.
Farmers will get this income support from Decemeber 2018. So for FY19, the government will shell out Rs 20,000 crore as “income support” to farmers.
announced a 2 percent interest subvention for farmers hit by natural calamities, while offering 3 percent more to them for timely loan payment.
Goyal, who stepped in to present the budget for 2019-20 in the Lok Sabha in place of indisposed Arun Jaitley, also announced 2 percent interest subvention for farmers involved in animal husbandry and fishery.
Farmers hit by natural calamities will get 2 percent interest subvention and 3 percent more on timely repayment of loans, he said.
Further, the finance minister said the government will provide Rs 750 crore to support animal husbandry and fishing.
He also said the government has fixed MSP for 22 notified crops at 50 percent higher than cost of production.
There is need for structured income support for poor, landless farmers to meet input cost, the FM said, adding that the government will also implement special strategy for uplift of nomadic tribes.
He said pension scheme for unorganised sector workers will be implemented from this fiscal.
High growth, formalisation of the economy has resulted in increased EPFO membership by 2 crore in last two years, he noted.
The farm relief package will put pressure on the fiscal deficit, according to consultancy EY. The Rs 75,000 crore income support scheme for farmers will translate to 0.26 percent of the GDP, they said.
With inputs from PTI.
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