New Delhi: Addressing the distress in the agrarian sector, Finance Minister Piyush Goyal on Friday announced a scheme to provide direct income support of Rs 6,000 to farmers with a land holding up to two hectares, which would benefit about 12 crore people.
He also announced expansion of the interest subvention for loans taken under Kisan Credit Card to farmers involved in animal husbandry and fishing.
Presenting the Interim Budget for 2019-20 in the Lok Sabha, he said the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) will be effective from December 1, 2018.
“Under this scheme, direct income support of Rs 6,000 every year will be given to farmers who have a land holding of up to two hectares,” he said.
“This income support will be transferred directly into the bank accounts of the farmers in three equal installments of Rs 2,000 each.” The scheme will be funded 100 per cent by the central government, he added.
Goyal said farm returns have reduced due to the declining prices of agriculture commodities in the international markets and a fall in food inflation in India in the last two years relative to the non-food sector.
“Small and fragmented land holdings on account of repeated division has also contributed in the decline in the income of the farmer families. Hence, there is need to provide structured income support to poor farmer families in the country for procuring inputs such as seeds, fertilisers, equipment, labour and to meet other needs,” he said.
Goyal said the scheme will be effective from December 2018 and the first installment for the period up to March 31 this year will be disbursed soon.
The government will incur an annual expenditure of Rs 75,000 crore in 2019-20 while it has allocated Rs 20,000 crore in the revised estimates of the current year.
He also reiterated the government’s “historic” decision to provide Minimum Support Price (MSP) for 22 crops with 50 per cent profit over the input cost in order to double farm income. Agriculture continues to be the main driver of the rural economy, he said.
Saying an increase in farm loans to Rs 11.68 lakh crore in 2018-19, the minister said the allocation for interest subvention on farm loans has been doubled in order to provide farmers with affordable loans.
Moreover, the benefit of two per cent interest subvention will be provided to the farmers pursuing activities of animal husbandry and fishery who avail of a loan through the Kisan Credit Card (KCC), the minister said.
“Further, in case of timely repayment of loan, they will get three per cent additional interest subvention,” he said.
He also said that the government has decided to provide benefit of three 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.
Goyal said Rs 1.7 lakh crore has been allocated in order to bring food at affordable rates to families belonging to the poor and middle class.
“We ensured that everyone gets food and nobody goes to sleep without food,” he said.
The Mahatma Gandhi National Rural Employment Guarantee Scheme has been provided Rs 60,000 crore in 2019-20 and more funds will be poured in if required, he said.
Saying the government seeks to break the urban-rural divide in the country, Rs 19,000 crore has been allocated to the Pradhan Mantri Gram Sadak Yojana as against Rs 15,500 crore in the previous budget, Goyal said.
Out of the total 17.84 lakh habitations in the country, 15.80 lakh were provided with pucca roads and the remaining work will be done soon, he said.
Goyal also announced a ‘Rashtriya Kamdhenu Aayog’ to upscale sustainable genetic upgradation of cow resources and to enhance production and productivity of cows.
“The Aayog will look after effective implementation of laws and welfare schemes for cows. The government will not hesitate in allocating funds for the respect of “Gomata”.
Goyal also announced a separate Department for Fisheries.
Highlights of Interim Budget 2019-20
Tax
1. Within 2 years, tax assessment will be done electronically
2. IT returns processing in just 24 hours
3. Minimum 14% revenue of GST to states by Central government
4. Custom duty abolished from 36 Capital Goods
5. Recommendations to GST Council for reducing GST rates for home buyers
6. Full rebate up to Rs 5 lakh annual income after all deductions
7. Standard deduction increased from Rs 40,000 to Rs 50,000
8. Exemption on tax on second self-occupied house
9. Ceiling Limit of TDS u/s 194A increased from Rs 10,000 to Rs 40,000 for women
10. Ceiling Limit of TDS u/s 194I increased from Rs 180,000 to Rs 240,000
11. Capital tax Benefit u/s 54 increased from investment in one residential house to two residential houses.
12. Benefit u/s 80 IB increased to one more year i.e. 2020
13. Benefit given to unsold inventory increased from one year to two years
Other Areas
14. State share increased to 42%
15. PCA restriction abolished from 3 major banks
16. 2 lakh seats will increase for the reservation of 10%
17. Rs 60,000 crore for MGNREGA
18. Rs 1.7 lakh crore to ensure food for all
19. 22nd AIIMS to open in Haryana
20. Approval has to be given to PM Kisan Yojana
21. Rs 6,000 per annum to be given to every farmer having up to 2 hectare land. Applicable from September 2018. Amount will be transferred in 3 installments
22. National ‘kamdhenu ayog’ for cows. Rs 750 crore for National Gokul Mission
23. 2% interest subvention for farmers pursuing animal husbandry. Creation of separate department for fisheries.
24. 2% interest subvention for farmers affected by natural calamities and additional 3% interest subvention for timely payment.
25. free gratuity limit increased to Rs 20 lakh from Rs 10 lakh
26. Bonus will be applicable for workers earning Rs 21,000 monthly
27. Pradhan Mantri Shram Yogi Mandhan will provide assured monthly pension of Rs 3,000 with contribution of Rs 100 per month for workers in unorganized sector after 60 years of age.
28. Our government delivered 6 crore free LPG connections under Ujjawala scheme
29. 2% interest relief for MSME GST registered person
30. 26 weeks of Maternity Leave to empower the women
31. More than Rs 3 lakh crore for defence
32. One lakh digital villages in next 5 years
33. Single window for approval of Indian filmmakers.