Budget 2020: PM - Kisan fund likely to be trimmed by 20%

The fund allocation for the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme is likely to be trimmed for the next fiscal year according to a report published in Economic Times. In FY20, the amount allocated to PM-KISAN was Rs. 75,000 crore but the agriculture ministry has sought Rs. 60,000 crore for 2020-21, the report said. The reason behind the cut in funds for FY21 is that some states have delayed identifying beneficiaries, and several farmers are not yet verified by Aadhaar, the report said. 

Apart from West Bengal, some states have not been prompt in implementing the scheme. Bihar for instance, has registered around 30 percent of its farmers due to the absence of digital data. Madhya Pradesh, Rajasthan, Maharashtra, Andhra Pradesh, and Karnataka have registered 55-60 percent of their farmers as recipients. Uttar Pradesh has recognised 85 percent of the 2.5 crore farmers it has, as per the agricultural census of 2016, while Rajasthan has verified 80 percent of its farmers, the financial daily said PK Joshi, fellow at National Academy of Agricultural Sciences said, "We conducted a research where we found that the money of PM-Kisan was used in buying fertilisers when it was disbursed before the sowing season. Continuing further he said, that the scheme's success primarily depends on the timing of the disbursment.