Economics • Indian EconomyMedium
How does the implementation of the PM-KISAN scheme interact with state-level agricultural support programs in supplementing farm incomes across Punjab?
A. It provides direct income support of fixed cash transfers into verified bank accounts of landholding farmers, complementing state-level input subsidies✓ Correct Answer
B. It acts as a corporate tax exemption for multinational fertilizer manufacturers
C. It replaces the entire system of electricity subsidies provided to tubewells across the state
D. It functions as an international trade tariff levied on agricultural machinery imports
💡 Solution & Explanation
The PM-KISAN scheme transfers direct income support to eligible farmer families, operating alongside state power and fertilizer subsidies to cushion rural incomes. It does not provide corporate tax exemptions to fertilizer companies. Power subsidies to tubewells are administered independently by the state government and dis-utility boards. Import tariffs are regulated under national customs laws rather than domestic income support schemes.
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