Union Budget 2024: PM Kisan Allocation Likely To Be Hiked To Rs 80,000 Crore Likely

The Centre may boost the PM Kisan Samman Nidhi allocation by 30%, reaching around Rs 80,000 crore in the upcoming Union Budget 2024, according to government sources. This increase aims to support farmers more effectively.

In the interim budget, the government allocated Rs 60,000 crore for PM Kisan Samman Nidhi, providing Rs 6,000 per farmer annually. Agricultural representatives have urged Finance Minister Nirmala Sitharaman to raise this amount to Rs 8,000 per farmer during pre-budget consultations in late June.

Focus on Key Sectors

The full budget will continue prioritising youth, women, rural areas, and farmers. "We have requested Finance Minister Nirmala Sitharaman to increase the allocation under PM Kisan to Rs 8,000 from Rs 6,000," said Badri Narayan Choudhary of the Bhartiya Kisan Sangh.

This proposed increase is not expected to cause fiscal slippage due to higher revenue collections and dividends from the Reserve Bank of India (RBI). The government's financial position remains strong.

Revenue Projections

In her budget speech on February 1, 2024, Finance Minister Nirmala Sitharaman projected higher direct and indirect taxes for FY25. The Centre plans to collect Rs 21.99 lakh crore from direct taxes and Rs 16.31 lakh crore from indirect taxes in fiscal year 2025.

The government also received a record dividend payout of Rs 2.1 lakh crore for FY25 from the RBI. This amount exceeded both the government's budget estimate and analysts' expectations of Rs 1.02 lakh crore. It was also significantly higher than the Rs 87,416 crore dividend payout in FY23.

These increased revenues provide a buffer that allows for enhanced allocations without jeopardising fiscal stability. The focus remains on ensuring that key sectors receive adequate funding while maintaining economic balance.

The upcoming budget is set to address various demands and ensure continued support for critical areas such as agriculture and rural development. By increasing allocations under schemes like PM Kisan Samman Nidhi, the government aims to bolster farmer incomes and promote rural prosperity.