Prime Minister Narendra Modi on Friday chaired the first Cabinet meeting of his second term with the Union Ministers during which landmark decisions were taken in the field of education and agriculture.
In a major push to boost rural consumption ,the cabinet has decided to extend the PM-KISAN scheme which promises poor farmers irrespective of their land holdings, an annual payout of Rs. 6,000 in three installments in their bank accounts. It includes vaccination programme for cattle also. The new move will benefit around 15 crore farmers. The Cabinet has also cleared the pension scheme for traders. Three crore retail traders and shopkeepers will benefit from the scheme.
The revised scheme envisages to cover 2 crore more farmers with an estimated expenditure of ₹87,217.50 crore in 2019-20. The previous government had estimated annual expenditure of ₹75,000 crore in the earlier version of the scheme.
According to the official data released on Friday, the agriculture sector grew at 2.9% in FY-19 as against the growth rate of 5% in the previous year.
Major changes were made in the ‘Prime Minister’s Scholarship Scheme’. In its first decision of its second tenure, Narendra Modi government has enhanced the amount to be paid as part of ‘Prime Ministers Scholarship Scheme’ under the National Defence Fund.
The rates of scholarship have been increased from ₹2,000 per month to ₹2,500 per month for boys and from ₹2,250 per month to ₹3,000 per month for girls.
The ambit of the scholarship Scheme has also been extended to the wards of state police personnel who were martyred during terror or naxal attacks.
The quota of new scholarships for wards of state police personnel will be 500 in a year.
A month before the Union Budget, the decision to expand the PM KISAN scheme shows government’s priority given to the farm sector. Many policy experts have stated that higher spending in rural areas would boost economy and could be growth driver