Govt to merge agri schemes, link funds to state reforms, Pg9

Key Highlights:

• The Union Ministry of Agriculture has proposed merging three schemes into the Pradhan Mantri-Rashtriya Krishi Vikas Yojana (PM-RKVY) with an outlay of Rs 1.75 lakh crore over the next five years.
• Fund allocation will be linked to specific parameters, with maximum weightage given to the assessment of reform initiatives and milestones achieved by states.
• The schemes to be merged are Krishonnati Yojana (KY), National Mission on Natural Farming (NMNF), and National Bee and Honey Mission (NBHM).
• The proposed scheme is to be implemented over the next five years during the 16th Finance Commission cycle from April 2026 to March 2031.

Detailed Insights:

• The proposed merger aligns with NITI Aayog’s recommendations to provide performance-based financial incentives to states for implementing agriculture reforms.
• The fund sharing ratio between the Centre and states will be 60:40 for most states, 90:10 for Northeastern and Himalayan states, and 100% for Union Territories.
• The allocation of funds to states will be linked to five key parameters, with a maximum weightage of 30% for assessment based on reform initiatives and milestones achieved.
• The PM-RKVY was initially launched in 2007 as an umbrella scheme for ensuring holistic development of agriculture and allied sectors.
• The Union Cabinet approved the implementation of PMRKVY and KY with an outlay of Rs 1.01 lakh crore in October 2024.
• The NMNF was approved in November 2024 with an outlay of Rs 2,481 crore until March 2026, and the NBHM in September 2023 with Rs 370 crore until 2025-26.

Key Concepts Involved:

• Centrally Sponsored Scheme: A scheme funded jointly by the Centre and States, implemented by the States.
• Central Sector Scheme: A scheme that is funded and implemented by the Union Government.
• Umbrella Scheme: A comprehensive scheme incorporating multiple sub-schemes or components.