·The Hindu·15 marks·250–350 wordsEconomy

Multi-year budgetary approval for welfare schemes like PM-KISAN aids fiscal predictability but raises questions of accountability. Discuss.

In this answer
  1. How multi-year approval aids fiscal predictability
  2. Accountability concerns it raises

Article 114 of the Constitution ties public spending to annual parliamentary appropriation, yet recurring welfare schemes are increasingly sanctioned in multi-year blocks — the Cabinet's July 2026 approval of PM-KISAN for 2026-27 to 2030-31 with a ₹3.15 lakh crore outlay being the latest instance [1]. Such continuity strengthens delivery but dilutes annual legislative scrutiny.

How multi-year approval aids fiscal predictability

  • Assured beneficiary expectation: a five-year sanction guarantees the ₹6,000/year transfer in three instalments, letting farmers plan purchase of seeds, fertilizers and irrigation without informal high-interest credit [1].
  • Administrative continuity: avoids annual re-sanctioning delays; PM-KISAN has sustained 23 uninterrupted instalments worth over ₹4.47 lakh crore, with the 23rd covering 9.49 crore farmers [1][2].
  • Medium-term fiscal planning: a known ₹3.15 lakh crore commitment lets the Centre align it with FRBM deficit paths, rather than absorbing yearly allocation shocks in a scheme already forming about 45% of the Agriculture Ministry's budget [3].
  • Federal signalling: as a 100% Central Sector Scheme, predictable funding lets states plan complementary interventions like KCC linkage.

Accountability concerns it raises

  • Weakened annual scrutiny: a block sanction reduces the Demand for Grants debate to a formality, limiting Parliament's power of the purse.
  • Locked-in design flaws: the Standing Committee on Agriculture flagged poor land records, slow beneficiary identification and Aadhaar-mismatch errors; the scheme also excludes landless agricultural labourers, who form a majority of agricultural workers [3].
  • Rigidity: pre-committed outlays crowd out reallocation towards capital investment in irrigation or research if outcomes disappoint.
  • Outcome blindness: approval is input-based (rupees released), with no periodic evaluation trigger tied to income impact.

Multi-year approval is thus a governance advance in stability, not a substitute for oversight. Pairing it with mandatory mid-term evaluation, outcome-budget reporting to Parliament, CAG performance audits and digitised land-record seeding can retain predictability while restoring accountability — making PM-KISAN a model for outcome-linked welfare financing consistent with SDG-1 and SDG-2.

Sources

  1. 1Cabinet approves continuation of the PM-KISAN Scheme from 2026-27 to 2030-31 with a Financial Outlay of Rs. 3.15 lakh crore, PIBextension tenure, ₹3.15 lakh crore outlay, ₹6,000/year benefit, ₹4.47 lakh crore over 23 instalments, women beneficiaries, input-investment impact
  2. 223rd Instalment of PM-KISAN, PIB23rd instalment coverage of farmers
  3. 3Demand for Grants 2026-27 Analysis: Agriculture and Farmers Welfare, PRS Legislative ResearchPM-KISAN share of Ministry budget; Standing Committee on Agriculture findings on land records, beneficiary identification, Aadhaar mismatch, exclusion of agricultural labourers
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