Union Budget 2019-20

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Union Budget 2019-20: Income support for farmers drives historic allocation for agri ministry

HIGHLIGHTS

  • Sitharaman said gaon, gharib and kisan are at centre in Budget 2019-20
  • Allocation for agriculture and allied sector increased by 75 per cent
  • government aims to invest widely in agriculture infrastructure and allied areas, and would seek support from private entrepreneurship for value addition in farm sector especially in food processing industry.
  • PM Modi’s promise of doubling farmers’ income by 2022. the Modi government’s principles of “ease of doing business” and “easy of living” should apply to farmers too.
  • support private entrepreneurships in driving value addition to farmers’ produce from the field and for those from allied activities, like bamboo and timber from the hedges and for generating renewable energy.”
  • This got reflected in the budget numbers for the agriculture and allied sector. Against the Budget 2018-19 (revised) estimates of Rs 86,602 crore for agriculture and allied activities, Sitharaman’s Budget 2019-20 proposed to invest 1,51,518 crore in this sector. This comes about an increase of 75 per cent in budgetary allocation over interim budget.
  • Sitharaman proposed setting up of 10,000 new Farmer Producer Organisations (FPOs) to ensure economies of scale for farmers over the next five years. She said the Modi government will work with state governments to see that farmers get fair price through electronic National Agriculture Market (e-NAM) that was launched in 2016002E
  • Zero budget farming is a set of farming methods that involve zero credit for growing agricultural produce and no use of chemical fertilizers.
  • It evolved as an agriculture movement in Karnataka due to collaboration between agriculturist Subhash Palekar and state farmers association Karnataka Rajya Raitha Sangha (KRRS). Success in Karnataka saw zero budget farming model being adopted in other states as well. Sitharaman said the government will give it further push.
  • In her budget speech, Sitharaman said farmers should be encouraged to adopt dairying by creating
    infrastructure for cattle feed manufacturing, milk procurement, processing and marketing. She said this would turn “annadata” (a reference to farmers) into “urjadata” (energy provider). Rs 75,000 crore for income assistance to boost rural consumption, claims government
  • The proposed Budget 2019-20 has historic allocation for the Ministry of Agriculture and
    Farmers’ Welfare: Rs 1,30,485 crore —the highest-ever.
  • In 2014-15, when Narendra Modi first became prime minister, the agriculture ministry was
    allocated Rs 31,063 crore. It received Rs 79,026 crore, according to the revised estimates of
    2018-19.
  • The allocation proposed by Finance Minister Nirmala Sitharaman in her maiden budget speech represents a 140 per cent jump over the ’18-19 budget estimate of Rs 57,600 crore. This leap is mostly due to the staggering Rs 75,000 crore allocated to the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan). Of the agriculture ministry’s budget, 57 per cent is now for direct cash assistance to farmers.
  • In its interim budget just before the elections, the National Democratic Alliance government
    declared this income assistance scheme with retrospective effect. In the budget for 2018-19, thus, Rs 20,000 crore was allocated. The PM-Kisan scheme provides a Rs 6,000 in income support to each farmer in three instalments of Rs 2,000 each.
  • The historic allocation, however, is still less than Rs 10,000 crore of what was proposed in the interim budget.
  • Average annual growth rate in real terms in agricultural and allied sectors has remained around 2.88 per cent (2014-15 to 2018-19). Besides, rural wages continue to stagnate. These have led to an overall decline in rural consumption as people have less to spend.
  • In the Economic Survey 2018-19, boosting consumption in the country has been identified as a major pathway to increase economic growth. With rural areas accounting for 60 per cent of the consumption, it was expected that the government would declare as much as possible to kickstart consumption.
  • The 2018-19 financial year’s 6.8 per cent economic growth was lower than the five-year average of 7.5 per cent. The dip was majorly due to low agricultural growth — in fact, a contraction in the fourth quarter. Low food inflation made farmers produce less and spend less. Rabi acreage shrank marginally.
  • For the fishery, Animal husbandry and dairy Union allocate 3737 core Rs

Union government

  • inaugurate |Pradhan mantri matsya sampada yojana for fishermen
  • For national gokul mission government allocate 750 core
  • on kisan credit card to percent debt
  • 1000 core increment in pick Bima yojna
  • In 2018-19 there will be the 12976 core Rs given to pick bima yojna
  • Now 2019-20 there will be 14,000 core allocate for pick bima yojana
  • For Pradhan mantri Jal Sinchan yojana 3500 core allocate in 2019-20 , In 2018-19 2954.69 core allocate by union government

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