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Agriculture Budget in India (2021–2026): Allocation, PM-KISAN Share & 5-Year Trend
- KD Maurya
- Feb 19
- 3 min read
India’s agriculture budget allocation has remained broadly stable over the last five years. The Ministry of Agriculture & Farmers’ Welfare (MoA&FW) allocations from 2021–2026 show a consistent spending pattern, with growing focus on PM-KISAN income support, crop insurance and farmer credit support.
This article explains the year-wise agriculture budget allocation in India, what the numbers mean, and how they impact farmers.
📊 Year-wise Agriculture Budget Allocation (MoA&FW)
(₹ crore figures based on PRS Demand-for-Grants analysis)
Budget Year | Allocation (₹ crore) | Approx ₹ lakh crore | Share of total budgeted expenditure (Union Budget) | What it Indicates |
2021–22 | 1,31,531 | 1.32 | 4.0% | PM-KISAN ~49% of ministry allocation; major spending on interest subsidy & crop insurance |
2022–23 | 1,32,514 | 1.33 | 3.4% | PM-KISAN ~55% share; strong focus on credit support & insurance |
2023–24 | 1,25,036 | 1.25 | 2.8% | PM‑KISAN ~48% of ministry allocation; continued focus on credit and insurance schemes. |
2024–25 | 1,32,470 | 1.32 | 2.7% | Allocation ~5% higher than 2023–24 RE; utilisation/underspending trends noted by PRS |
2025–26 | 1,37,757 | 1.38 | 2.7% | Higher allocation aimed at farmer income and sector strengthening |
💰 Why Agriculture Budget Matters for Farmers
Agriculture spending directly impacts farmers through three major channels:
1️⃣ Income Support
Schemes like PM-KISAN provide direct cash transfers to farmers.
2️⃣ Cost of Credit
Interest subsidy reduces borrowing cost and improves access to loans.
3️⃣ Risk Protection
Crop insurance schemes protect farmers from climate and market risks.
Budget allocations also influence irrigation, research, digital services and market infrastructure.
Agriculture & Allied Sector – Broader Budget Context
While the MoA&FW Demand-for-Grants figures show ministry-specific allocations, broader reporting highlights agriculture & allied sector spending at a wider level.
According to a CNBC TV18 report, the Union Budget 2024 allocated ₹1.27 lakh crore to Agriculture & Allied sectors, accounting for 2.78% of the total Union Budget.
👨🌾 Focus on Small & Marginal Farmers
MoA&FW spending is heavily centred around PM-KISAN:
49% of allocation in 2021–22
55% in 2022–23
48% in 2023–24
This shows a strong policy shift toward direct income support for farmers.
At the same time, PRS highlights implementation challenges such as underspending in some years, which is important when comparing announced vs actual spending.
📈 5-Year Trend: Stability with Changing Priorities
Between 2021–2026, agriculture allocations stayed within a tight band of ₹1.31–₹1.38 lakh crore.
However, the share of the Union Budget declined from 4.0% in 2021–22 to 2.7% in 2024–25 and 2025–26.
This suggests:
Spending is stable in absolute terms
Agriculture’s share in total spending has slightly reduced
Policy focus is shifting toward delivery efficiency and resilience
🌾 What This Means for Rural Economy
Agriculture supports a large share of India’s population and plays a key role in rural income and food security.
Stable funding helps:
Improve farmer income
Strengthen rural demand
Support dairy, fisheries and food processing sectors
Boost long-term productivity
🔗 Related Farmer Guides
❓ FAQ
What is India’s agriculture budget 2025–26?
The Ministry of Agriculture allocation is about ₹1.37 lakh crore.
Has the agriculture budget increased in the last 5 years?
Allocations stayed stable, but the share of the Union Budget declined from 4.0% to 2.7%.
Which scheme gets the biggest share?
PM-KISAN receives the largest portion of agriculture ministry spending.
Conclusion
Over 2021–2026, MoA&FW allocations stayed in a relatively tight range (about ₹1.31–₹1.38 lakh crore), but their share in total central government expenditure fell from 4.0% (2021–22) to around 2.7% (2024–25 and 2025–26).
At the same time, PRS analyses show the ministry’s spending priorities are increasingly anchored around PM‑KISAN (the single largest component in multiple years), alongside credit interest support and crop insurance—so the bigger story is not just “how much,” but how effectively funds translate into timely delivery on the ground.
