In the lead-up to the Interim Budget 2024, Ashima Goyal, a distinguished member of the Reserve Bank Monetary Policy Committee (MPC), has put forth a proposal suggesting the imposition of income tax on wealthy farmers. The idea aims to introduce fairness and balance into the taxation system, aligning with a broader shift toward a data-rich framework featuring lower tax rates and reduced exemptions.
Goyal’s Perspective on Farmer Tax:
- Ashima Goyal emphasizes that government transfers to farmers effectively function as a form of negative income tax.
- She advocates for the implementation of a positive income tax for wealthy farmers, contributing to a more equitable taxation landscape.
Potential Changes in Government Assistance Programs:
- The PM-Kisan Yojana, a central scheme providing annual financial assistance of Rs 6,000 to economically disadvantaged farmers, might witness an increase in support to Rs 8,000 per farmer.
- Speculations suggest enhancements under PM Garib Kalyan Anna Yojana, indicating potential changes in government assistance policies.
Anticipated PM-Kisan Scheme Developments:
- The 16th instalment of the PM-KISAN scheme is expected to launch between February and March 2024, with the 15th instalment released on November 15, 2023.
- The Ministry of Agriculture and Farmers’ Welfare notes a notable increase in women beneficiaries, with every fourth addition in the past two months being a woman.
Gender Equality Progress in PM-Kisan Scheme:
- Between November 15, 2023, and January 14, 2024, out of 40,50,375 beneficiaries added to PM-Kisan, 10,61,278 were women.
- Uttar Pradesh leads in women beneficiaries, followed by Rajasthan, Manipur, Jharkhand, and Kerala.
Viksit Bharat Sankalp Yatra and Scheme Awareness:
- New beneficiaries were enrolled through Viksit Bharat Sankalp Yatra (VBSY), a flagship initiative launched on November 15, 2023, to create awareness about government schemes.
- VBSY aims for maximum coverage of beneficiaries under various schemes before the 2024 Lok Sabha elections.
Overall PM-Kisan Scheme Statistics:
- As of November 15, 2023, there were a total of 8.12 crore PM-Kisan beneficiaries, with 6.27 crore men and 1.83 crore women.
- The scheme, initiated in December-March 2018-19, reached a peak of 10.47 crore recipients in April-July 2022, declining to 8.12 crore in August-November 2023.
As discussions unfold in the lead-up to the Interim Budget, the proposal for a wealthy farmer tax introduces a nuanced perspective on fiscal policies, sparking debates about the role of income tax in agricultural sectors.
