Budget 2014
In his maiden budget after General Elections 2014, FM Arun Jaitley’s Union Budget 2014 was aimed at injecting a new life in the agriculture sector. Rural Infrastructure Development Fund (RIDF) was allocated Rs. 25,000 cr instead of Rs 20,000 cr as presented by the UPA in its Interim Budget 2014. To upgrade agricultural infrastructure Rs 5,000 cr was allocated for warehousing facilities. The FM had announced a Rs 500 cr Farm Price Stabilization Fund to counter the precarious nature of the sector. The government ideated setting up farming markets.
To facilitate landless farmers, the FM had announced providing Rs 5 lakh finance to joint farming groups under Bhoomi Heen Kisan via Long Term Rural Credit Fund under NABARD. The government had also announced opening agricultural and horticulture universities to upgrade the sector with knowledge of technologically advanced measures.
Budget 2015
In his Budget 2015 speech, the FM had emphasised, “Increase in agricultural productivity and realization of reasonable prices for agricultural production is essential for the welfare of rural areas. We should commit to increasing the irrigated area, improving the efficiency of existing irrigation systems, promoting agro-based industry for value addition and increasing farm incomes, and reasonable prices for farm produce.” Arun Jaitley had allocated Rs 5,300 cr for micro-irrigation, watershed development and the Pradhan Mantri Krishi Sinchai Yojana. The centre promoted organic farming with its Paramparagat Krishi Vikas Yojana.
Rs 25,000 cr was given to the Rural Infrastructure Development Fund (RIDF) of NABARD, while Rs 15000 cr was allocated to the Long Term Rural Credit Fund, Rs 45000 cr for Short Term Cooperative Rural Credit Refinance Fund and Rs 15000 cr for Short Term RRB Refinance Fund.
Budget 2016
Budget 2016 was termed as Pro-Agriculture and Pro-Rural. The FM aimed to double income in the hands of a farmer by 2022. A massive Rs 47,912 cr was allocated to the agriculture and allied sector during budget 2016-17. It was in Budget 2016 that Arun Jaitley announced Krishi Kalyan Cess of 0.5% along with Service Tax on all taxable services. Rs.20,000 Cr was further infused in the Irrigation Fund of NABARD. The government pushed various other subsidies for fertilizers and agricultural credit.
Budget 2017
In Budget 2017, the FM had announced to broaden the coverage of National Agricultural Market (e-NAM) from 250 to 585 markets. Rs.70000 Cr was given out for Fertilizer subsidy. Rs 9,000 cr was assigned to crop insurance scheme - Fasal Bima Yojana while Rs.5000 was allocated to set up Micro Irrigation Fund at NABARD to support ‘Per Drop More Crop’. The government announced digital integration of Primary Agriculture Credit Societies (PACS) for easy loan disbursal. The Agriculture Target of Rs.10 lac per person was fixed with total target at Rs.10 lac crore. Dairy Processing Infrastructure fund was set up with a corpus of Rs 8,000 cr under NABARD.
Budget 2018
The biggest relief came for the farmers in the form of setting up Minimum Support Price (MSP) of minimum 50% higher than cost of production for Kharif crops. Farm Credit target was set at Rs.11 lac crore. Arun Jaitley gave a major boost in the form of tax incentives for post-harvest agricultural activities.
“In order to encourage professionalism in post-harvest value addition in agriculture, I propose to allow hundred per cent deduction to these companies registered as Farmer Producer Companies and having annual turnover up to Rs 100 crores in respect of their profit derived from such activities for a period of five years from financial year 2018-19,” the FM had stated. The FinMin also assigned Rs. 10,000 cr to Fisheries and Aqua-culture Infra fund and Animal Husbandry Infra fund.