PM-Kisan Scheme Extended to 2031 with Rs 3.1 Lakh Crore Outlay

The central government on Friday approved the continuation of the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) Yojana for another five years, from 2026-27 to 2030-31, with a total financial outlay of Rs 3.1 lakh crore. The decision is aimed at providing stable income support to eligible landholding farmer families across the country.

Under the scheme, eligible families receive financial assistance of Rs 6,000 per year, paid in three equal instalments of Rs 2,000 each. The government said the scheme has enhanced farmers’ productive capacity, though no detailed impact assessment was released alongside the extension announcement.

PM-Kisan was launched in February 2019 to supplement the income of small and marginal farmers. It is a central sector scheme with 100% funding from the Government of India. The scheme uses the Direct Benefit Transfer (DBT) mechanism to transfer funds directly into the bank accounts of beneficiaries, reducing leakages and intermediaries.

Eligibility is limited to landholding farmer families, excluding those who fall under certain higher-income categories. The scheme originally targeted around 11 crore beneficiaries, though the government has not published updated figures with the extension. The new outlay of Rs 3.1 lakh crore works out to an average annual expenditure of roughly Rs 62,000 crore for the five-year period.

Friday’s approval comes amid broader discussions on agricultural support and rural welfare. The government has often presented PM-Kisan as a key component of its efforts to address farmer distress, alongside other measures such as crop insurance, loan waivers, and procurement price support. However, critics have pointed out that the fixed payout of Rs 6,000 per year is modest relative to the rising input costs and volatility faced by farmers.

The scheme’s extension means that eligible farmers will continue to receive the instalments without interruption through the fiscal year ending March 2031. The first instalment for 2026-27 is expected to be released in the usual cycle, though exact dates were not specified in the announcement.

Observers note that the timing of the decision, well ahead of the end of the current cycle in 2025-26, provides policy certainty for farmers and resource planning for state authorities. The approval was issued through a brief government statement, which did not include details on any changes to eligibility or payment structure.

The decision is likely to have significant fiscal implications, as the outlay is one of the largest for a single welfare scheme for the agricultural sector. The government has maintained that such direct income transfers help reduce poverty and stimulate rural demand, thereby benefiting the larger economy.

In its statement, the government said the continuation of PM-Kisan would further the objective of enhancing farmers’ productiveness and ensuring their welfare. It also reiterated the scheme’s role in fulfilling the government’s commitment to doubling farmers’ income, though no new timeline or target was announced.

The extension of PM-Kisan is expected to be formally notified through an official gazette order in due course. The government has not yet announced any changes to the beneficiary database verification process or the grievance redressal mechanism.