DOES THE GOVERNMENT FINANCIAL SCHEME PM-KISAN SAMMAN NIDHI INCREASE AGRICULTURAL PRODUCTION AND TAX REVENUE?

Abstract

Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Yojana is a government initiative that provides financial support to Indian farmers, and this study investigates their impact on agricultural production and how it contributes to tax revenue. The study used secondary data from 21 Indian states from FY 2019-2022 as per availability, collected from the government’s official websites. The results showed that PM-KISAN is positively significant for agricultural production, even with moderate infrastructure, and positively impacts tax revenues. The study suggests that the government should increase the amount according to farmers’ land holdings and adjust it according to inflation. Regional offices and banks should provide information about the scheme to help farmers engage in services and avoid micro corruption. Previous studies have used primary data to investigate the effect of PM-KISAN on farmers’ income, but no
studies have examined how it affects agricultural production and tax revenues.