 "Farmers, data, agriculture, tech")
Budget 2024: Finance Minister Nirmala Sitharaman will present the Interim Budget for the financial year 2024-25 (FY25) on February 1, marking the second Interim Budget presentation by the Bharatiya Janata Party (BJP)-led government.
The Union Budget for the financial year 2023-24 laid a special emphasis on development in India's agricultural sector and the welfare of farmers in the country. Sitharaman spoke on the importance of food production, free food schemes, subsidies, and income support to farmers. In the 2023 budget speech, FM Sitharaman also announced that a cash transfer of Rs 2.2 trillion had been made to more than 114 million farmers in the previous financial year (FY22) under the Pradhan Mantri (PM) Kisan Samman Nidhi.
Here are all the other major announcements made for agriculture in the Budget 2023 that may pave the way to predict announcements in Budget 2024:
Ministry of Agriculture & Farmers' Welfare Budget allocation 2023
The Ministry of Agriculture & Farmers' Welfare was allotted Rs 1,25,036 crore, around five per cent more than the revised estimates of Rs 1,18,913 crore for Budget 2022. Out of this, Rs 1,15,532 crore went towards the Department of Agriculture and Farmers Welfare, and Rs 9,504 crore was allocated to the Department of Agricultural Research and Education. Respectively, these were five per cent and 10 per cent increase in each department's budget compared to revised estimates of Budget 2022-23.
Agriculture Budget 2023 key highlights:
Benefits for farmers through the utilisation of Kisan Drones for crop assessments, insecticide spraying, and digitalisation of land records.
Direct payments amounting to Rs 2.37 trillion for minimum support price (MSP) provided to wheat and paddy farmers.
Agri-startups by young entrepreneurs to be supported with the launch of an Agriculture Accelerator Fund.
Agricultural credit raised to Rs 20 trillion, with a specific focus on dairy, fisheries, and animal husbandry.
Plan to empower 10 million farmers to transition to natural farming, promoting sustainable agricultural practices.
Establishment of a sizable decentralised storage capacity to assist farmers in storing produce and securing fair prices through timely sales.
New schemes and investment in Budget 2023 for agricultural sector
Introduction of a new sub-scheme under PM Matsya Sampada Yojana with a targeted investment of Rs 6,000 crore. This aimed to empower fish vendors, fishermen, and micro- and small businesses (MSMEs).
Creation of a Digital Public Infrastructure for Agriculture, designed as an open-source, open-standard, and interconnected platform. This aimed to enhance farmers' access to farm inputs, market intelligence, and support for startups in the agriculture sector.
Introduction of PM PRANAM to encourage states and Union Territories to adopt alternative fertilisers, promoting sustainable agricultural practices.
Investment of Rs 2,516 crore to initiate the computerisation of 63,000 primary agricultural credit societies (PACS), facilitating streamlined financial processes.
Support for the Indian Institute of Millet Research, Hyderabad, designated as the "Center of Excellence for Sharing Best Practices, Research, and Technologies," internationally. This aimed to position India as a global hub for millet-based agriculture, known as "Shree Anna."
Interim Budget 2024 expectations for agriculture sector
The Interim Budget 2024 is expected to continue ongoing schemes and prioritise infrastructure investment, rural development, and job creation to address the challenges faced by poorer sections, especially in rural areas, according to a recent poll conducted by Reuters.
As previously reported by Business Standard, gross tax revenues are expected to exceed the Budget estimates of Rs 33.6 trillion by Rs 60,000 crore. This tax buoyancy would allow for higher allocations to welfare funds such as MGNREGA, rural roads, PM Kisan Samman Nidhi, PM Vishwakarma Yojana.
