Finance minister Nirmala Sitharaman is expected to announce an increase in the annual payout under the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme in the budget.

The cash support to farmers is likely to increase by ₹2,000 to ₹8,000 annually and comes amid calls from farmer groups and policymakers for greater financial assistance to rural households.

If implemented, the measure would cost the exchequer an additional ₹20,000 crore on top of the ₹60,000 crore allocated in the July budget, government sources said.

PM-Kisan, launched in December 2018, provides ₹6,000 annually in three instalments to small and marginal farmer families. Farm leaders, during pre-budget consultations with the finance minister, strongly advocated an increase, citing rising input costs and inflationary pressures on rural incomes.

A parliamentary panel recently recommended doubling the annual benefit to ₹12,000 and extending seasonal incentives to tenant farmers and farm labourers.

“The support given under the PM-Kisan scheme may be increased to ₹12,000 from ₹6,000 at present,” stated the standing committee on agriculture, animal husbandry, and food processing, chaired by Congress MP Charanjit Singh Channi. The panel also called for a legal guarantee of Minimum Support Prices (MSP), a central demand during recent farmer protests in Punjab and Haryana.

While the finance ministry is reportedly open to increasing the PM-Kisan payout, sources indicated that the panel’s recommendation to double the amount is unlikely to be met in this budget cycle.

Economists argue that raising PM-Kisan benefits could stabilise rural incomes and support consumption growth, which is increasingly being driven by rural demand as urban spending shows signs of slowing.

“Putting more money into farmers’ hands can have a multiplier effect on the economy, boosting consumer demand and driving private investment,” said a senior economist.