PM Kisan Budget Update: Rs 63,500 Crore Approved, But When Will The Funds Be Credited?

The central government has announced the allocation for the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme for the financial year 2026-27. This time, Rs 63,500 crore has been earmarked in the Union Budget for farmers’ welfare. The allocation remains unchanged from last year, with the government choosing to maintain the same level of funding.

Launched in 2019, the scheme provides eligible farmers with annual financial assistance of Rs 6,000. The amount is transferred directly to farmers’ bank accounts in three instalments. The primary objective of the scheme is to support the agricultural sector by aiding farm-related investment. At present, more than 10 crore farmers across the country benefit from the programme.

Since its inception, the government has credited over Rs 3.70 lakh crore directly into farmers’ bank accounts. This has provided significant relief to small and marginal farming families nationwide. During the 2024 Lok Sabha elections, many farmers had hoped for an increase in the assistance amount, but the government has continued with the same allocation this year as well.

An analysis of budget figures from recent years shows fluctuations in fund utilisation. In 2023-24, actual expenditure stood at Rs 61,441 crore, exceeding initial estimates. For 2024-25, an initial allocation of Rs 60,000 crore was later revised to Rs 66,121 crore, based on the number of beneficiaries. This indicates that the government has adjusted spending in response to ground-level requirements.

However, farmer organisations have criticised the Rs 6,000 annual assistance, arguing that it is inadequate given the sharp rise in cultivation costs. In meetings held in December, they demanded that the amount be increased to at least Rs 9,000-Rs 12,000 per year. Despite these demands, the government opted to retain the existing allocation in the interest of fiscal discipline.

To improve transparency, the government has tightened the e-KYC process under the scheme. New rules ensure that only farmers with verified land records are eligible to receive the benefit. The digital system has also been strengthened to prevent ineligible individuals from accessing the funds. Officials state that these measures will curb misuse and ensure that genuine farmers receive support.

In addition to PM-Kisan, the Budget provides for other subsidies aimed at supporting the agriculture sector. A substantial subsidy is being extended to keep fertiliser prices under control. Alongside PM-Kisan payments, these measures offer indirect financial relief to farmers. As part of its broader objective to double farmers’ income, the government has also channelled funds into allied agricultural sectors.

Although the assistance amount has not been increased, the uninterrupted continuation of the scheme has helped sustain farmers’ trust. PM-Kisan continues to play a vital role in strengthening the rural economy. As the funds are transferred directly to bank accounts, the scope for corruption is minimal. Farmers remain hopeful that future policy decisions will bring enhanced benefits. In the month of February, Rs 2,000 is set to be credited to farmers’ accounts, with the transfer expected in the last week of the month.