BUDGET 2023: Government likely to increase Farmers Payout to Rs. 8000 under PM-KISAN

In an effort to increase rural demand and consumption, the Centre may consider to increase the amount of money granted to farmers under the PM-KISAN income-support program from 6,000 to roughly 8,000 per year in upcoming Budget 2023, according to two persons familiar with the situation.

According to one of the individuals described above, during the development of the Union Budget, for which feedback was sought from many ministries, including the agriculture ministry, a proposal to increase payouts to farmers covered by PM-KISAN was discussed.

According to the individuals described above, considering the large spending in the previous two years as a result of the epidemic, the budget may refocus attention on the Atmanirbhar Bharat (self-reliant India) push while maintaining the current track on fiscal austerity.

Various suggestions for an increased PM-KISAN payout were discussed and analyzed during budget preparation. The first person stated that one of the proposals suggested doubling the 6,000 rupees ($60) per year that farmers receive under PM KISAN. They continued by saying that according to a set of calculations, increasing PM KISAN by 2,000 rupees ($2,0) would result in an additional expense of 22,000 crore. Last month, the Niti Aayog advocated expanding PM-KISAN into a more comprehensive universal basic income program for the poor and vulnerable.

The government offers farmers with a valid enrollment in PM-KISAN annual income support of 6,000 in three equal cash payments of 2,000 each, one every four months. On February 24, 2019, the day the first installment was paid, it was made public.

The beneficiaries’ bank accounts are promptly credited with PM-KISAN funds. Nearly 100 million cultivators received financial transfers totaling over 21,000 crore in the last installment.

According to the median estimate in a Bloomberg survey conducted before the budget was announced on February 1, finance minister Nirmala Sitharaman would likely boost spending by approximately 12.5% year over year to reach 44.4 trillion in the fiscal year beginning in April.

In order to increase demand, Sitharaman’s final full-year budget before the 2024 election is anticipated to maintain current spending levels for the poor and middle class while reducing subsidies, particularly for food and fertilizer.

According to the second person, the budget is anticipated to put out a plan for increased domestic fertilizer production that will reduce imports.