Budget 2019: PM Modi's gift to the farmers ahead of session, announces Rs 12,000 cash transfer to 12 crore farmers annually

As per HSBC’s Global Research report, “We think it is likely the central government will announce some version of direct cash support for rural India. Estimates suggest that if the government were to enact a similar direct cash transfer schene nationwide (as the schemes of the four states), it could cost around (Rs 2 lakh crore, 1% of the GDP in FY20). However, if it were to subsume some pre-existing schemes, and is a shared budren with India’s states, the additional budren would be lower.”

Although the waiver of PMFBT premium would cost Rs 5,000 to Rs 6,000 crore, and additional interest subsidy on farm loans could entail an expenditure of Rs 6,000 to Rs 12,000 crore. It’s up to the government how it fairs up to the expectations of the farmers and the middle class.

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