Union Finance Minister Nirmala Sitharaman, during her reply to the budget debate in Parliament on Tuesday, highlighted significant increases in the budget for farmers and various employment programs.
Substantial Increase in Agricultural Budget
Minister Sitharaman stated that the budget allocation for the Department of Agriculture and Farmers Welfare has increased five times in 2024-25 compared to 2013-14. She explained that the budget was only Rs 21,934 crore in 2013-14 but has now grown to Rs 1.23 lakh crore in the current budget. This considerable increase reflects the government’s commitment to supporting farmers.
She also mentioned the success of the PM Kisan scheme, noting that more than Rs 3.24 lakh crore has been disbursed to 11 crore farmers since its launch. This scheme provides direct income support to farmers, helping them with their financial needs.
Increase in Institutional Credit for Agriculture
The Finance Minister highlighted that the targets for institutional credit for agriculture have more than doubled. In 2014-15, the target was Rs 8 lakh crore, which has now increased to Rs 20 lakh crore. Additionally, the interest subsidy for farmers has increased from Rs 6,000 crore in 2014-15 to Rs 14,252 crore in 2024-25, benefiting more farmers with lower loan interest rates.
Sitharaman shared that the number of small and marginal farmers taking agricultural loans has increased from 57 percent in 2014 to 76 percent now. This shows that more farmers are receiving financial assistance to improve their agricultural activities.
Minimum Support Price (MSP) and Criticism of the UPA Government
On the issue of Minimum Support Price (MSP), the Finance Minister criticized the previous UPA government for not implementing the recommendations of the National Commission on Farmers led by M. S. Swaminathan. She pointed out that the UPA government did not accept the recommendation to set MSP at 50 percent more than the weighted average cost of production, which was suggested in 2006.
PM Kisan Samman Nidhi vs. UPA’s Direct Income Support
Sitharaman accused the Congress of only talking about direct income support for farmers without implementing it. In contrast, the current government launched the PM Kisan Samman Nidhi in 2019, providing much-needed support to farmers. She accused the Congress of shedding “crocodile tears” for farmers without taking substantial actions.
The Finance Minister introduced the PM Yuva package in the budget, which includes five schemes designed to make youth independent and capable. She emphasized the importance of these schemes in empowering the younger generation.
Increase in Employment and Labor Force Participation
Sitharaman cited RBI data to highlight the increase in employment during the current government’s tenure. She shared that the labor force participation rate has risen from 49.8 percent in 2017-18 to 57.9 percent in 2022-23. Women’s labor force participation has also surged from 23 percent in 2017-18 to 37 percent in 2022-23.
The Finance Minister noted that the overall unemployment rate in the country has declined from 6 percent in 2017-18 to 3.2 percent in 2022-23. According to an SBI research report released in July 2024, India created 12.5 crore jobs between 2014 and 2023, compared to only 2.9 crore jobs during the 10 years of the UPA government. Youth unemployment for the age group of 15-29 years has also significantly decreased from 17.8 percent in 2017-18 to 10 percent in 2022-23.
Countering Congress’s Claims on Employment
Sitharaman criticized the Congress party for allegedly misleading the public about the employment situation in the country. She argued that the data contradict Congress’s claims and show that the current government has made significant progress in creating jobs and supporting the youth.
The Finance Minister’s statements highlight the government’s efforts to support farmers and create employment opportunities, presenting a positive picture of the current economic policies.
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