DBT scheme draft requires states to share burden 70:30, but states are in no mood to bear the burden.
Centre will likely announce direct benefit transfer (DBT) worth Rs 4,000 per acre per season plus interest-free crop loan up to Rs 1 lakh per farmer in an instant two-fold relief to the farmers, sources in the know told BusinessToday.In. The initiatives will cost the Centre Rs 2 lakh crore towards DBT and another Rs 28,000-30,000 crore towards interest subvention, adding up to nearly Rs 2.3 lakh crore on an annual basis. At least the Rs 70,000 fertiliser subsidy scheme will be subsumed into the scheme to make it possible. Some other smaller schemes may also get subsumed.
Having lost three crucial state elections to arch rival Congress in December, the ruling BJP-NDA is in hyper-active mode to appease the most aggrieved community -- farmers. It believes its scheme's impact must be felt by the intended beneficiaries well before the 2019 General Elections to deliver the political dividend it is seeking -- return to power. Centre has called quickfire meetings at the PMO as well as in NITI Aayog to finalise the announcement which is likely within this week. In this process, officials of nodal ministries -agriculture, revenues, expenditure, chemical and fertilisers, food, et al-have been asked to meet informally to iron out any glitches. Meanwhile, PM Narendra Modi is meeting farmer leaders to discuss the proposals.
Having lost three crucial state elections to arch rival Congress in December, the ruling BJP-NDA is in hyper-active mode to appease the most aggrieved community -- farmers. It believes its scheme's impact must be felt by the intended beneficiaries well before the 2019 General Elections to deliver the political dividend it is seeking -- return to power. Centre has called quickfire meetings at the PMO as well as in NITI Aayog to finalise the announcement which is likely within this week. In this process, officials of nodal ministries -agriculture, revenues, expenditure, chemical and fertilisers, food, et al-have been asked to meet informally to iron out any glitches. Meanwhile, PM Narendra Modi is meeting farmer leaders to discuss the proposals.