Finance Minister Arun Jaitley announced a whopping Rs 1 lakh crore hike in the credit target for the next financial year to Rs 10 lakh crore as part of the government’s efforts to double farm incomes in the next five years.
The target for agricultural credit in 2017-18 has been fixed at a record level of Rs 10 lakh crore, Jaitley stated in his Budget speech.The government provides short-term crop loans up to Rs 3 lakh at subsidised interest rate of 7% per annum.
An additional incentive of 3% is provided to farmers for prompt repayment of loans within due date, making an effective interest rate for them at 4%. The Finance Minister noted that the agriculture sector is expected to grow at 4.1% the current financial year on good monsoon.
Sowing of both kharif and rabi crops has been higher. Jaitley stated the allocation for new crop insurance scheme ‘Pradhan Mantri Fasal Bima Yojana’, which was launched in 2016, has been increased to Rs 13,240 crore this financial year from budgeted Rs 5,500 crore. The allocation for the next financial year has been earmarked at Rs 9,000 crore. So, let’s discuss some questions related to this post:
Q1. How much the Agriculture credit raised to record in Financial Year 2017-2018?
Ans1. Rs 10 Lakh Crore
Source- Business Standard