The Agriculture Ministry has responded to a media report regarding the non-utilization of funds, particularly the surrender of one lakh crore rupees from its budget over the last five years. The Ministry contends that the article fails to provide the Ministry’s perspective.
The Ministry explains that the Centrally Sponsored Schemes such as Rashtriya Krishi Vikas Yojana (RKVY) and Krishionnati Yojana (KY) are executed by state governments. The slow pace of expenditure at the field level, coupled with the introduction of a new procedure for just-in-time fund release, has resulted in lower utilization under these schemes.
“The state governments are responsible for ensuring the timely release of funds by contributing their share and incurring expenses for subsequent instalments”, it adds. The Ministry emphasizes that it has allocated sufficient funds to states that have already spent money, ensuring the smooth implementation of various departmental schemes.
It asserts that the government has taken numerous measures for the welfare of farmers, with the budget allocation for the Department of Agriculture & Cooperation witnessing a significant increase over the years.
Three major Central Sector Schemes, including PM-KISAN, Pradhan Mantri Fasal Bima Yojana (PMFBY), and increased institutional credit for the agriculture sector, form the bulk of the budget for the Department of Agriculture & Farmers’ Welfare. PM-KISAN, launched in 2019, has disbursed over Rs.2.81 lakh crore to more than 11 crore farmers through Direct Benefit Transfer (DBT). PMFBY, launched in 2016, has seen enrolment from 49.44 crore farmers, with over 14.06 crore farmers receiving claims totalling over Rs.1,46,664 crore.
The Ministry also notes the expansion of concessional institutional credit through Kisan Credit Card (KCC) to include Animal Husbandry and Fisheries farmers. It explains that the expenditure on these schemes is lower in the North Eastern Region (NER) due to its community-based land holding pattern and a lower percentage of cultivable land. The unused funds are made available for the consolidated fund for use in other schemes and departments.
Regarding budget estimates, the Ministry clarifies that they are prepared after consulting stakeholders like state governments, farmers’ representatives, and implementing agencies. The estimates are adjusted during the year based on actual expenditure, unspent balances, and the fund requirements.
The total savings through mandatory surrender at the Revised Estimate (RE) stage in the last four years amount to Rs.64,900.12 crore, and an additional Rs.40,000 crore has been surrendered due to the mandatory allocation criterion of 10% for the North East region.
