The Interim Budget for 2019 introduced several proposals designed to drive development in India’s rural sector. Key features revolve around agriculture and related sectors, rural infrastructure, and social programs. This article presents a simplified discussion on these initiatives.
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
One of the significant proposals is the introduction of PM-KISAN, a scheme inspired by the Rythu Bandhu and the KALIA schemes of Telangana and Odisha respectively. The primary objective is to provide guaranteed income support to small and marginal farmers. Landholding farmer families with cultivable land up to 2 hectares can avail direct income support at Rs. 6,000 per year, disbursed in three equal installments. The program has an estimated annual expenditure of Rs.75,000 crore, fully funded by the Indian Government. It is expected to benefit approximately 12 crore farmer families.
The Rashtriya Kamdhenu Aayog and the Department of Fisheries
The government has also proposed the establishment of the ‘Rashtriya Kamdhenu Aayog’. Primarily focused on sustainable cattle resource genetic upgrades and the welfare of cows, it will be an integral part of the government’s livestock initiatives. The Rashtriya Gokul Mission, dedicated to the conservation of indigenous cattle breeds, is allocated Rs 750 crore.
In order to prioritize the development of the fisheries sector, a separate Department of Fisheries will be established.
Rural Infrastructure and Initiatives
The budget allocation for the Pradhan Mantri Gram Sadak Yojana (PMGSY) has been increased from Rs 15,500 crore to Rs 19,000 crore. Launched in 2000, PMGSY is aimed at providing all-weather road connectivity to remote Indian villages.
The government plans to transform one lakh villages into Digital Villages over the next five years by expanding the reach of Common Service Centres (CSCs).
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
However, funding for the MGNREGA scheme was slightly reduced to ₹60,000 crore compared to its previous budget. Activists claim that this funding crunch has resulted in delays in wage payments and difficulties in meeting work demands.
Pension Schemes for Unorganised Sector Workers
| Scheme Name | Allocation for 2019-20 | Description |
|---|---|---|
| New pension scheme for unorganised sector workers | ₹500 crore | Pension scheme for unorganized sector workers with monthly income up to ₹15,000. Monthly pension of ₹3,000 will be provided from the age of 60. |
| National Social Assistance Programme (NSAP) | ₹9,200 crore | Existing pension scheme administered by the Ministry of Rural Development. The allocation was reduced from ₹9,975 crore in 2018-19. |
The new pension scheme, known as the Pradhan Mantri Shram-Yogi Maandhan, aims to benefit unorganized sector workers. In contrast, the allocation for the pre-existing National Social Assistance Programme (NSAP) has been reduced.
