The Union Cabinet, chaired by Prime Minister Narendra Modi, approved a five-year extension of the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme on Friday [1], [2].
This decision ensures continued financial stability for millions of farmers across India by providing a guaranteed income floor. The extension maintains a critical welfare safety net for the agricultural sector, which remains a primary driver of the national economy.
The approved extension will run through the 2030-31 fiscal year [4]. Under the terms of the program, each eligible farmer family will continue to receive Rs 6,000 per year [3].
The total financial outlay for this five-year period is estimated at approximately Rs 3.15 lakh crore [2], [5]. More specific government figures place the total expenditure at Rs 3,15,614 crore [1].
Launched on Feb. 24, 2019 [3], the PM-Kisan scheme was designed to supplement the income of landholding farmers. The funds are intended to help families purchase agricultural inputs, and meet domestic needs—reducing their reliance on high-interest informal loans.
The Cabinet's move to extend the program suggests a long-term commitment to direct benefit transfers in the rural sector. By securing the funding through 2031, the government aims to provide predictability for farming households as they manage seasonal volatility, and climate risks [1], [6].
“Each eligible farmer family will continue to receive Rs 6,000 per year”
The extension of PM-Kisan signals the Indian government's reliance on direct cash transfers to maintain rural stability. By committing over Rs 3 lakh crore through 2031, the administration is prioritizing immediate liquidity for farmers over structural agricultural reforms. This move likely serves both a socio-economic purpose and a political one, ensuring a steady stream of support to a critical voting bloc in the rural heartlands.
