Union Budget 2021: Farm credit target up, allocation to central agri schemes down

Agriculture

At a time when the government is facing flak from farmer organisations over the new farm bills, Finance Minister Nirmala Sitharaman took an extra effort to reach out to them, moving in line with the government’s target of doubling the farmer income by 2022-23.

The government has raised the farm credit target for the financial year 2021-22 to Rs 16.5 lakh crore, in an effort to raise the farmer income. For the financial year 2020-21, farmer credit target was kept at Rs 15 lakh crore.

The Budget has allocated Rs 1.23 lakh crore for centrally-sponsored schemes in agriculture sector for 2021-22, down 8 per cent from Rs 1.34 lakh crore in 2020-21.

Among the schemes, a major decline was seen on PM Kisan scheme, through which Rs 6,000 is being provided to eligible farmers per year in three equal instalments. The budget estimate for PM Kisan was seen at Rs 65,000 crore, as compared to Rs 75,000 crore in the BE of 2020-21, showing a decline of Rs 10,000 crore.

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The Budget has given an additional focus on the rural economy..The finance minister has increased the allocation to the Rural Infrastructure Development Fund from Rs 30,000 crore to Rs 40,000 crore.  The allocation to Micro Irrigation Fund created under NABARD was also augmented by another Rs 5,000 crore.

The allocation for MGNREGA increased from Rs 73,000 crore, up from Rs 61,500 crore. During the Narendra Modi regime starting from 2014-20, the expenditure under MGNREGA was seen at Rs 2.95 lakh crore, as compared to Rs 1.91 lakh crore between 2008 to 2014.

The sops for agriculture sector has come when thousands of farmers from Punjab, Haryana and Uttar Pradesh are protesting in Delhi since November 26, seeking a repeal of three farm laws -- Farmers' Produce Trade and Commerce (Promotion and Facilitation) Act, 2020; the Essential Commodities (Amendment) Act, 2020 and the Farmers Empowerment and Protection Agreement on Price Assurance and farm Services Act 2020. Farmer groups were also demanding ensuring of minimum support price (MSP) for their crops.