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The Union Budget for the financial year 2025–26 will be presented on February 1, 2025, by Finance Minister Nirmala Sitharaman at 11 a.m. in Parliament. This marks the second budget of Prime Minister Narendra Modi’s third term in office. The Modi government has consistently prioritized increasing farmers’ incomes, and similar to previous years, this budget is expected to include several significant announcements aimed at benefiting the agricultural sector.
Here’s a look at the potential key measures for farmers in the upcoming budget:
Increase in Kisan Credit Card limit
The government may raise the limit for Kisan Credit Cards (KCC) from the current Rs 3 lakh to Rs 5 lakh. This move would substantially boost farmers’ income potential by enabling them to invest more in their agricultural activities.
Reduction in GST on agricultural inputs
In a bid to support farmers, the government may reduce the Goods and Services Tax (GST) on agricultural inputs such as seeds and fertilizers, which currently attract varying tax rates. Lowering GST rates on these inputs would help reduce costs and enhance farmers’ profitability.
Increased allocation for Agricultural schemes
In the previous budget, Rs 65,529 crore was allocated for agriculture-related schemes. This year, the government is expected to increase the allocation by 5–7%, reflecting its continued focus on improving the agricultural sector and supporting farmers.
Eighth budget for Nirmala Sitharaman
This will be Finance Minister Nirmala Sitharaman’s eighth Union Budget. It also marks the second full budget of PM Modi’s third term, following the government’s formation in June 2024. The first full budget of the current term was presented in July 2024.
Focus on farmers’ welfare
Since taking office, the Modi government has emphasized initiatives to double farmers’ incomes and strengthen the agricultural economy. The upcoming budget is expected to reinforce these efforts with policies and measures tailored to benefit the farming community.
As the date approaches, all eyes will be on the announcements aimed at empowering farmers and ensuring sustainable growth in the agricultural sector.
