PM-Kisan Allocation May Increase to ₹1 Lakh Crore, Farmers Set to Receive ₹7,500 Annually

In a significant move aimed at bolstering support for farmers, the government is considering a substantial increase in the budget allocation for the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme. According to reliable sources, the allocation may surge to ₹1 lakh crore, a notable rise from the current ₹60,000 crore, as part of the government's strategy in the lead-up to the General Elections scheduled for April-May 2024.

The flagship direct benefit transfer (DBT) scheme, PM-Kisan, has been a cornerstone of the government's efforts to provide financial assistance to farmers. Currently disbursing ₹6,000 per year in three instalments, the government is contemplating an augmentation of the annual transfer to ₹7,500. This potential adjustment is poised to be announced during the Budget session, and the revised instalment is anticipated to be transferred before the Holi festival, marking the commencement of the December-March fiscal year for 2023-24.

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An official source shared insights into the deliberations, stating, "The government may increase the Budget allocation to ₹1,00,000 crore under PM-Kisan from the current ₹60,000 crore, even though the actual expenditure is likely to go up by a quarter." The actual expenditure for the scheme stood at ₹66,825.11 crore in the fiscal year 2021-22.

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In contemplating the adjustment, the government weighed two options. The first involved maintaining the instalment amount at ₹2,000 and increasing the number of instalments from three to four, thereby elevating the total amount from ₹6,000 to ₹8,000 per year. The second option considered was raising the instalment amount from ₹2,000 to ₹2,500 while keeping the total number of instalments at three per year.

An in-depth evaluation of the PM-Kisan scheme revealed a decline in the number of beneficiaries to approximately eight crore after the implementation of exclusion criteria. Originally intended to cover 11-12 crore farmers annually, the government aims to pass on the savings achieved through this adjustment to the beneficiaries. The PM-Kisan scheme, launched in February 2019 just before the announcement of the General Election, has been a crucial component of the government's commitment to supporting the agricultural community, with the first disbursal made for the December-March period of the 2018-19 fiscal year.

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