Modi govt considering paying farmers cash instead of subsidies: Report

The govt, which has already exceeded the annual budget deficit target, has little room for spending in the current year

India is considering a plan to transfer cash to farmers to ease their financial burden instead of offering subsidies, people with knowledge of the matter said.

Prime Minister Narendra Modi’s government is planning to combine all farm subsidies, including fertilizer costs, and instead pay farmers cash, the people said, asking not to be identified as the discussions aren’t public. The additional cost will be limited to 700 billion rupees ($9.8 billion) annually after a full roll-out of the program, the people said. Finance Minister Arun Jaitley had budgeted 701 billion rupees for farm subsidies in the year ending March 31.

Finance ministry