In its bid to appease the distressed farming sector, the government announced Rs 6,000 per year cash support to small and marginal farmers, that will cost the exchequer Rs 75,000 crore annually.
Under the scheme called Pradhan Mantri Kisan Samman Nidhi, Rs 6,000 will be transferred into bank accounts of farmers holding up to 2 hectares of land in three equal instalments.
Announcing the scheme during the Budget speech in Lok Sabha, Finance Minister Piyush Goyal said it will benefit 12 crore farmers and will be implemented from this fiscal itself.
He said Rs 20,000 crore have been provided for current fiscal and also announced allocation of Rs 75,000 crore for the next fiscal.
In place of rescheduling of crop loans, all farmers severely affected by severe natural calamities will get 2 per cent interest subvention and additional 3 per cent interest subvention upon timely repayment, said Goyal.
In yet another announcement for the middle-class salaried persons, the government increased the gratuity limit from Rs 10 lakh to Rs 30 lakh.
In a bid to woo the poor and marginalised section, Goyal said that the MNREGA allocation has been set at Rs 60,000 crore to create employment opportunities. He also announced allocation and schemes for cow protection and increasing their productivity.