NEW DELHI: Finance Minister Nirmala Sitharaman has underscored the government's comprehensive efforts to ensure that farmers and rural communities directly benefit from every agricultural initiative. The administration is rolling out significant reforms aimed at boosting employment in agri-allied sectors, enhancing agricultural productivity, strengthening farm household purchasing power, and delivering universal services to agrarian populations across India.
Budget 2026 Focus on Agriculture and Inclusive Growth
During her Budget speech, Sitharaman emphasized that these agriculture-focused measures have been instrumental in achieving a high growth rate of approximately 7 per cent. This economic momentum has enabled substantial strides in rural poverty reduction and uplifted the lives of millions in India's farming heartland.
The Finance Minister further elaborated on the current external environment, noting that India faces challenges where trade and multilateralism for agri-exports are imperilled. Access to essential inputs like seeds, fertilisers, and supply chains is disrupted, while new technologies such as precision farming and artificial intelligence are transforming agri-production systems. These advancements are sharply increasing demand for critical resources like water, energy, and minerals necessary for sustainable cropping practices.
Confident Steps Towards Viksit Bharat
Sitharaman affirmed that India's growth trajectory continues to take confident steps towards the vision of Viksit Bharat (Developed India). This progress involves balancing ambitious agricultural goals—such as doubling farm incomes—with inclusive growth strategies that specifically benefit smallholders and rural ecosystems.
Union Budget 2025-26: Agriculture as Development Engine
The Union Budget for 2025-26 highlighted the government's strong support for the agriculture sector, portraying it as the first engine of development. Budgetary allocations to the Department of Agriculture and Farmers Welfare (DA & FW) have grown sharply over the years—from Rs 21,933.50 crore in the Budget Estimate for FY 2013-14 to Rs 1,27,290.16 crore in the Budget Estimate for FY 2025-26.
Several other ministries have also contributed significantly to the agriculture sector in 2025-26 through various schemes:
- Ministry of New and Renewable Energy via Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM)
- Department of Agricultural Research and Education for research schemes
- Ministry of Jal Shakti via Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)
- Ministry of Chemicals and Fertilisers for fertiliser support
- Ministry of Rural Development through MGNREGS
Budgetary Trends and Allocation Analysis
From 2021-22 to 2025-26, the Department of Agriculture and Farmers Welfare maintained Budget Estimates ranging between approximately Rs 1.15 lakh crore to Rs 1.27 lakh crore annually. Actual expenditures generally aligned closely with or slightly below these targets during this period.
A detailed breakdown reveals:
- In 2021-22, the Budget Estimate stood at Rs 123,017.57 crore against actual spending of Rs 114,840.43 crore
- This dropped to a Budget Estimate of Rs 124,000 crore in 2022-23 with actuals at Rs 101,572.54 crore, indicating some underutilization that particular year
- Recovery was evident in 2023-24 with a Budget Estimate of Rs 115,531.79 crore and actuals at Rs 110,283.64 crore
- For 2024-25 (provisional), the estimate of Rs 122,528.77 crore was exceeded by actual spending of Rs 123,987.13 crore
- For 2025-26, the Budget Estimate has risen to Rs 127,290.16 crore, with actual expenditure figures yet to be reported
Relative Prioritization Amid Expanding National Budgets
Despite steady absolute allocations, DA&FW's share of the total Budget Estimate within the Central Plan Outlay has trended downward consistently:
- From 3.53% in 2021-22 (amid a Government of India estimate of Rs 34,83,235.63 crore)
- To 3.14% in 2022-23 (GOI: Rs 39,44,908.67 crore)
- Then 2.57% in 2023-24 (GOI: Rs 45,03,097.45 crore)
- Followed by 2.54% in 2024-25 (GOI: Rs 48,20,512.08 crore)
- And 2.51% in 2025-26 (GOI: Rs 50,65,345.04 crore)
This trend reflects that while agriculture allocations have remained substantial in absolute terms, the overall central outlay has grown significantly more rapidly. This highlights a relative prioritization shift within expanding national budgets, even as the government maintains its commitment to agricultural development through various schemes and reforms.
