Finance Minister Nirmala Sitharaman will present the budget for this year on July 23. It is expected that the finance minister will make many big announcements for the farmers in this budget. The government might make important provisions on the PM Kisan Samman Nidhi Yojana, Kisan Credit Card and PM Kusum Yojana. After the constant demand of farmers’ unions for a legal guarantee of MSP and the announcement by farmers’ unions in Punjab, more funds may be provided in the budget to buy more crops at the support price. In the Lok Sabha elections, the BJP-led NDA did not get the expected support in the rural areas. The BJP suffered a major setback in Haryana and Rajasthan. It is now expected that the finance minister will increase the budgetary allocation for the schemes that play an important role in rural development in the budget.
This ambitious scheme of the Modi government is believed to have helped the BJP a lot in gaining traction among the farmers. The amount of the PM Kisan Samman Nidhi scheme, introduced in 2019, has not increased even once to date. Currently, farmers are getting Rs 6,000 per year. In the budget, the government may increase this amount to Rs 8,000 per year.
Under the Kisan Credit Card, agriculture loans up to Rs 3,000 can be given at an interest rate of 7%, which includes a subsidy of 3%. This means that farmers will get this loan at an interest rate of 4%. Considering the rise in inflation and farming costs, the government may increase the loan limit from Rs three lakh to Rs five lakh.
Under the Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM) scheme, the government is providing solar pumps to farmers with a subsidy of 75 percent. PM-Kusum Yojana has proved to be a boon for small farmers who now do not have to use expensive diesel for cooking their crops. The government may allow the use of solar systems installed under the PM-KUSUM Yojana for domestic non-farm purposes as well. An increase in subsidies is expected under this scheme.
Farmers’ unions are opposed to GST on farm equipment. They demand that the government abolish GST on farm equipment or provide input tax credit (ITC). In the budget, the government may decide to reduce GST rates on farm equipment or provide more subsidies. This would be a positive signal to farmers across the country that the government is serious about farming.
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