Feb 2, 2019
The interim budget 2019 is a politically efficient budget that has stressed on agriculture and farmer progress and rural sector with announcement of direct income transfer of Rs. 6,000 to farmers, besides enhancing the outlay by over 43 per cent year-on-year to Rs. 2.89 lakh crore for 2019-20. The increase comes to 30 per cent when compared to the revised budget estimates for 2018-19, which was Rs. 2.22 lakh crore.
While presenting the Interim Budget in the Lok Sabha for 2019-20, Finance Minister Piyush Goyal, said agriculture is the main driver of the rural economy and there is a need to provide income support to farmers with small and marginal land holdings, who are facing problem of lower returns.
The total outlay for the Ministry of Food Processing Industries is Rs. 1,196 crore in 2019-20 as against Rs. 1,000 crore in the revised budget for 2018-19. The government has allocated of Rs. 1.92 lakh crore for the Food Ministry, out of which Rs. 1.84 lakh crore has been set aside for food subsidy.
The government has earmarked Rs. 75,000 crore for the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) in the total allocation of Rs. 1.50 lakh crore for agriculture and allied activities. The rural sector has received Rs. 1.39 lakh crore. In fact the income support will be transferred directly to the bank accounts of the farmers in three equal installments of Rs. 2,000 each.
The government has allocated Rs. 20,000 crore for the PM-KISAN in the revised estimates of the current year as the scheme will be effective from December 1, 2018. The government has allocated Rs. 14,000 crore for the crop insurance scheme — Pradhan Mantri Fasal Bima Yojana for 2019-20 — as against Rs. 13,000 crore a year ago.
Goyal said the farm loans have increased to Rs. 11.68 lakh crore in 2018-19. Total allocation for interest subsidy for short-term credit to farmers has been increased from Rs. 15,000 crore for 2018-19 to Rs. 18,000 for 2019-20.
He said the benefit of two per cent interest subvention would be provided to the farmers pursuing activities of animal husbandry and fishery who avail loans through the Kisan Credit Card (KCC).
The budget has provided benefit of 3 per cent interest subvention for disaster-affected farmers for the entire period of reschedulement — from the earlier period of one year — besides interest subvention of 2 per cent.
Centrally-sponsored schemes such as Pradhan Mantri Krishi Sinchai Yojana (PMKSY) Rashtriya Krishi Vikas Yojana, National Mission on Horticulture and Sub-Mission on Agriculture mechanisation have slight changes in their allocation for 2019-20.
For the rural sector, the government has earmarked Rs 60,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Scheme that aims at enhancing livelihood security of rural households.
The government had allocated Rs. 61,084 crore for the scheme in the revised estimates for the current year from Rs. 55,000 it had earmarked when the Budget for 2018-19 was announced. The government intends to break the urban-rural divide in the country; Goyal said road construction works under the Pradhan Mantri Gram Sadak Yojana (PMGSY) has been tripled.
The allocation to the PMGSY has been enhanced to Rs. 19,000 crore for 2019-20 from Rs. 15,500 crore in the revised budget of current year.