Finance Minister Nirmala Sitharaman presented the Union Budget 2026–27 in a markedly different style, with agriculture featuring through only two clear priorities: promoting high-value crops and launching the Bharat Vistaar Plan to integrate technology, data, and agricultural extension services. A combined allocation of Rs 500 crore has been earmarked for these two initiatives.
The overall budget for agriculture and allied sectors stands at Rs 1,62,671 crore, up marginally from Rs 1,58,838 crore last year. However, the revised estimate of expenditure for the current year is Rs 1,51,853 crore, indicating significant underspending across several schemes. A closer look at the figures suggests that the budget does not mark a major policy shift; instead, allocations for many schemes have been reduced in line with lower actual spending.
Notably, apart from the two new focus areas, no major new initiatives have been announced for agriculture and allied sectors this year. This explains why the finance minister did not dedicate a separate section of her budget speech to agriculture, choosing instead to make announcements intermittently.
Out of the total Union Budget of Rs 53.47 lakh crore, Rs 1,30,561.38 crore has been allocated to the Department of Agriculture. The Department of Agricultural Research and Education has received Rs 9,967.40 crore, down from Rs 10,280.83 crore in 2025–26. This decline suggests limited confidence in expanding public investment in agricultural research, despite the Economic Survey emphasizing climate-resilient research and greater use of technology in farming.
The pattern of allocations indicates that the budget exercise for agriculture has become largely procedural, with most spending routed through central schemes. Key scheme-wise provisions reveal the same trend.
The Rashtriya Krishi Vikas Yojana had an allocation of Rs 8,500 crore in the current year, but revised expenditure is estimated at Rs 7,000 crore. For 2026–27, the allocation has been reset at Rs 8,550 crore.
Under the Krishonnati Yojana, Rs 8,000 crore was allocated, with likely spending of Rs 6,800 crore. The new budget raises this to Rs 11,200 crore, possibly due to the inclusion of the Prime Minister’s Dhan-Dhaanya Yojana announced in the previous budget.
The Pradhan Mantri Matsya Sampada Yojana had an allocation of Rs 2,465 crore, with revised spending of Rs 1,500 crore. For the coming year, it has been set at Rs 2,500 crore.
For the Pradhan Mantri Krishi Sinchai Yojana, Rs 8,260 crore was allocated, while actual spending stood at Rs 6,372 crore. The new allocation has been reduced to Rs 6,587 crore, reflecting a cut in irrigation spending compared to last year.
The river-linking project saw an allocation of Rs 2,400 crore last year, but revised expenditure was Rs 1,808 crore. The provision for 2026–27 has been reduced to Rs 1,906 crore.
Under the PMFME scheme for food processing, Rs 2,000 crore was allocated last year, with spending of Rs 1,500 crore. The new budget provides Rs 1,700 crore.
The Pradhan Mantri Fasal Bima Yojana received Rs 12,242 crore last year, with expenditure of Rs 12,267 crore. The new allocation stands at Rs 12,200 crore.
Allocations for interest subvention remain unchanged at Rs 22,600 crore, while the Pradhan Mantri Kisan Samman Nidhi has again been provided Rs 63,500 crore, the same as last year.
For the PM-AASHA crop procurement scheme, Rs 7,200 crore has been allocated, slightly higher than last year’s Rs 6,941 crore. The Price Stabilization Fund has been given Rs 4,100 crore, compared to Rs 4,020 crore last year, though actual spending in the previous year was only Rs 3,019 crore, nearly 30 percent lower.
On fertilizer subsidies, the allocation for urea stands at Rs 1,16,805 crore, lower than the revised estimate of Rs 1,26,475 crore for the current year. Non-urea fertilizers subsidy under Nutrient Based Subsidy (NBS) scheme subsidy provision is Rs 54,000 crore, compared to an estimated expenditure of Rs 60,000 crore this year.
For dairy development, Rs 1,055 crore has been provided, up from Rs 1,000 crore last year. Livestock health and disease control has received Rs 2,010 crore, slightly higher than last year’s Rs 1,980 crore. The Production Linked Incentive scheme for food processing continues at Rs 1,200 crore, unchanged from the previous year.
Overall, the budget for agriculture and allied sectors reveals a clear pattern: ministries have been unable to fully utilize their allocations, and the finance minister has largely reduced or maintained future allocations based on lower actual spending. At the same time, keeping major schemes at nearly constant levels signals that the government is not prepared to take on additional fiscal burden for agriculture in the coming year.