PM-KISAN extended for 5 years with Rs 3.15 lakh crore allocation

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved the continuation of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme for a period of five years, from 2026-27 to 2030-31. The decision includes a total financial outlay of Rs 3.15 lakh crore, according to an official statement released after the Cabinet meeting.

PM-KISAN is a central sector scheme that provides income support of Rs 6,000 per year to eligible farmer families. The amount is disbursed in three equal instalments of Rs 2,000 each, directly into the bank accounts of beneficiaries through the Direct Benefit Transfer (DBT) system. The DBT mechanism minimises leakages and ensures that support reaches farmers without delay. The scheme is fully funded by the central government.

The scheme was launched on February 24, 2019. Since then, it has expanded to cover a large number of farmer families across the country. According to official data, more than 11 crore farmers have benefited from the scheme so far. The government describes PM-KISAN as a foundational measure for the prosperity of farmers, which in turn contributes to the nation's prosperity. The name 'Samman Nidhi' translates to 'respect fund', reflecting the intent to provide dignity to farmers through direct financial support.

In the official statement, the government said, "The approval reiterates the Government's commitment that the prosperity of farmers forms the foundation of the nation's prosperity. Through the PM-KISAN Scheme, timely and transparent income support is being provided to eligible farmer families through the Direct Benefit Transfer (DBT) system, enabling farmers to increase agricultural investment and strengthen their livelihoods."

The new approval covers the five-year period from the financial year 2026-27 to 2030-31. The total outlay of Rs 3.15 lakh crore will be spent over this duration. The continuation ensures that the scheme does not lapse and that farmers continue to receive support without disruption.

The scheme's eligibility criteria include all farmer families with landholding. However, certain categories are excluded, including institutional landholders, those who pay income tax, and those who receive benefits from other specified government schemes. The focus is on small and marginal farmers, though there is no restriction on the size of landholding as long as it is agricultural land.

PM-KISAN has been part of a broader set of interventions aimed at improving farmers' welfare. It is intended to enable farmers to purchase agricultural inputs such as seeds, fertilisers, and equipment, thereby supporting farming operations. The direct cash transfer model has been noted for its efficiency and reduced dependency on intermediaries.

The decision to extend the scheme comes amid discussions on agricultural policies and rural support. While the government maintains that PM-KISAN provides critical financial support to landowners, some experts and farmer groups have raised concerns that landless agricultural workers and tenants are not covered. There have also been calls to increase the annual support amount given rising input costs. The government has not indicated any immediate change in the benefit amount or eligibility criteria.

With this approval, PM-KISAN will continue to be one of the largest direct benefit transfer programmes in the country. The allocation of Rs 3.15 lakh crore over five years reflects the government's continued fiscal priority for the agricultural sector. The first instalment for the new cycle will be released in accordance with the existing schedule.

The Cabinet's decision underscores the scheme's institutionalised role in supporting the rural economy. The continuation through 2030-31 is expected to provide long-term predictability for farmers planning their agricultural investments.