The way forward for PM-KISAN

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme's coverage, payout, and impact on farmers analyzed with data and insights.

The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), which provides yearly income support of ₹6,000 to eligible farmer families in three instalments, has been through highs and lows both in terms of coverage and payout. It became operational from December 2018.

Originally intended for small and marginal farmers, the scheme, which was launched in February 2019, was later extended to all farmers who owned land when the National Democratic Alliance retained power in May 2019.

The government made it clear in Parliament that there was no proposal to expand the scheme further to bring in tenant farmers under the fold.

At the time of expansion in 2019, the scheme was expected to cost ₹87,217.5 crore to the public exchequer for 2019-20 with the total number of beneficiaries being around 14.5 crore. However, in the last six years, neither did the amount disbursed exceed ₹70,000 crore during any year, nor did the number of beneficiaries touch the 14.5-crore mark.

As Table 1 shows, allocation for the scheme in the beginning of 2019-20 and 2020-21 was ₹75,000 crore each. But in both years, the expenditure on account of disbursal ranged from around ₹49,000 crore to ₹61,000 crore.

Table 1 | The table shows the allocation for the scheme and the amount transferred since 2018-19

The year-on-year growth rate for 2020-21 was close to 25% while it moderated to around 10% next year. However, it was in that year (2021-22) that the absolute figure of payout was the highest (around ₹67,150 crore).