Priority to Agriculture in Union Budget : 2015-2016

In this year’s Union Budget presented by Union Minister of Finance, Shri Arun Jaitley, on 28 February 2015, he mentions the steps to address the two major factors critical to agricultural production: soil and water.  An ambitious Soil Health Card Scheme has been launched to improve soil fertility on a sustainable basis.  In order to improve soil health, he also proposed to support Agiculture Ministry’s organic farming scheme – “Paramparagat Krishi Vikas Yojana”.  The Pradhanmantri Gram Sinchai Yojana is aimed at irrigating the field of every farmer and improving water use efficiency to provide `Per Drop More Crop’.  He allocated Rs 5,300 crore to support micro-irrigation, watershed development and the Pradhan Mantri Krishi Sinchai Yojana.  He urged the States to chip in substantially in this vital sector.

To support the agriculture sector with the help of effective and hassle-free agriculture credit, with a special focus on small and marginal farmers, he proposed to allocate Rs 25,000 crore in 2015-16 to the corpus of Rural Infrastructure Development Fund (RIDF) set up in NABARD; Rs 15,000 crore for Long Term Rural Credit Fund;  Rs 45,000 crore for Short Term Cooperative Rural Credit Refinance Fund; and Rs 15,000 crore for Short Term RRB Refinance Fund.

Farm credit underpins the efforts of our hard-working farmers. Recognising this fact, he has set up an ambitious target of  Rs 8.5 lakh crore of credit during the year 2015-16 which, he hoped that the banks will surpass.  

Shri Jaitley said that the Government is committed to supporting employment through MGNREGA. He said that it will be ensured that no one who is poor is left without employment.

To increase the incomes of farmers, he emphasised upon the need for a National agricultural market, which will have the incidental benefit of moderating price rises. He said that he intends this year to work with the States, in NITI, for the creation of a Unified National Agriculture Market. He proposed to set up a Post Graduate Institute of Horticulture Research and Education in Amritsar

Department wise allocation in Ministry of Agriculture:

Central Plan Outlay by Ministries/Departments
(In crores of Rupees)
	2014-2015	2015-2016
	Revised	Budget
Ministry of Agriculture	8735	10670
Department of Agriculture and Cooperation	5326	5846
Department of Agricultural Research and Education	2500	3691
Department of Animal Husbandry, Dairying and Fisheries	909	1133

Programme wise allocation in Ministry of Agriculture:

Highlights of Plan 2015-2016

(Rupees In crore)

IRRIGATION

5300 Pradhan Mantri Krishi Sinchai Yojana

- 1800 Development of Micro irrigation (per drop more crop)

- 1500 Integration Watershed Development Programme

- 2000 Pradhan Mantri Krishi Sichai Yojana (including

acccelerated irrigation benefit and flood

management programme)

AGRICULTURE

12257 Krishonnati Yojana (Centre and State)

of which

- 4500 for Rashtriya Krishi Vikas Yojana (State Plan).

- 2823 for National Crop Insurance Programme.

- 1300 for National Food Security Mission.

- 835 for National Mission for Sustainable Agriculture.

ANIMAL HUSBANDRY, DAIRYING AND FISHERIES

- 482 Dairy Vikas Abhiyan

- 411 Blue Revolution (including inland and marine fisheries)

Major Programmes under Central Plan
(In crore of Rupees)
Sl. No.	2014-2015  Revised	2015-2016 Budget
1 Ministry of Agriculture	8734.6	10669.99
1.1 Krishyonnati Yojana (Central Plan)	…	3257.25
1.2 Crop Insurance	2587.78	2588.6
1.3 Indian Council of Agricultural Research (ICAR)	2206.64	3295
1.4 Dairy Vikas Abhiyaan	…	481.5
1.5 Blue Revolution	50	410.69

KEY FEATURES OF THE BUDGET 2015-2016: AGRICULTURE

v  Major steps taken to address the two major factors critical to agricultural production, that of soil and water.

v  ‘Paramparagat Krishi Vikas Yojana’ to be fully supported.

v  ‘Pradhanmantri Gram Sinchai Yojana’ to provide ‘Per Drop More Crop’.

v  Rs 5,300 crore to support micro-irrigation, watershed development and the ‘Pradhan

Mantri Krishi Sinchai Yojana’. States urged to chip in.

v  Rs 25,000 crore in 2015-16 to the corpus of Rural Infrastructure Development Fund

(RIDF) set up in NABARD; Rs 15,000 crore for Long Term Rural Credit Fund; Rs 45,000 crore for Short Term Co-operative Rural Credit Refinance Fund; and Rs 15,000 crore for Short Term RRB Refinance Fund.

v  Target of Rs 8.5 lakh crore of agricultural credit during the year 2015-16.

v  Focus on improving the quality and effectiveness of activities under MGNREGA.

v  Need to create a National Agriculture Market for the benefit farmers, which will also

have the incidental benefit of moderating price rises. Government to work with the States, in NITI, for the creation of a Unified National Agriculture Market.

 Ghanshyam Goel is ADG (M&C), PIB and Samrat Bandopadhyay is Assistant Director (M&C), PIB New Delhi

Courtesy: pib.nic.in