Critical schemes meant to support small and marginal farmers have either seen reductions or no increase despite higher revised estimates, says the All India Agricultural Workers Union
NEW DELHI – Terming the Union Budget 2026–27 as “anti-people and pro-big capital”, the All India Agricultural Workers Union (AIAWU) is observing a nationwide protest and strike on Monday (2 February), accusing the BJP-led central government of systematically dismantling welfare measures for farmers, agricultural workers and rural poor while extending sweeping concessions to corporate interests.
In a statement after Finance Minister Nirmala Sitharaman’s budget presentation, the AIAWU said the budget faithfully follows the political-economic agenda of the BJP government—strengthening big capital at the cost of the toiling masses, amid rising inflation, unemployment and deepening rural distress. Despite a marginal increase in the overall size of the budget, the AIAWU pointed out that allocations to key social sectors have either stagnated or declined in real terms, exposing what it described as the government’s “callous disregard for livelihoods and basic rights”.
Agriculture: Marginal Hike, Real Cuts
The AIAWU strongly criticised the allocation for the Department of Agriculture and Farmers Welfare, which has increased only marginally from ₹1,27,290.16 crore to ₹1,30,561.38 crore. Adjusted for inflation, the Union said, this amounts to a virtual cut. Critical schemes meant to support small and marginal farmers—including the Pradhan Mantri Fasal Bima Yojana, Pradhan Mantri Krishi Sinchai Yojana and Pradhan Mantri Krishi Vikas Yojana—have either seen reductions or no increase despite higher revised estimates.
The budget continues the trend of reducing input subsidies. The urea subsidy has been cut by ₹2,094.5 crore compared to last year, while the Nutrient Based Subsidy has received only a nominal increase of ₹5,000 crore. Overall government support to the fertiliser sector has consistently declined since 2022–23, further burdening farmers already struggling with high input costs.
Rural Development and Employment
Guarantee Undermined
The allocation for the Department of Rural Development stands at ₹1,94,368.81 crore, up from ₹1,87,754.53 crore, an increase the organisation described as “grossly inadequate” given widespread rural unemployment and hunger. Government expenditure data show that only 51 per cent of allocated funds were spent in the first nine months of 2025–26, a sharp decline from the previous year, reflected in lower revised estimates.
The AIAWU expressed serious concern over cuts and stagnation in social security schemes. The National Family Benefit Scheme allocation has been slashed from ₹659 crore to ₹400 crore, while allocations for widow and disability pensions remain unchanged, effectively eroding their value due to inflation.
A major point of contention is the replacement of MGNREGA with the Viksit Bharat Gramin Rozgaar and Aajeevika Mission (Gramin) [VB-GRAM(G)]. The AIAWU said the allocation of ₹95,692.31 crore exposes the government’s intention to do away with the employment guarantee framework, despite claims that the new scheme would increase workdays from 100 to 125. According to it, at least ₹2.5 lakh crore is required to meet rural employment needs. Recommendations by a Parliamentary Committee to enhance allocations and minimum wages have been ignored, reflecting what the Union termed the “authoritarian dismissal of parliamentary voices”.
The budget, the AIAWU said, further downgrades the priority of drinking water, especially in rural India. The Jal Jeevan Mission has seen a steady fall in actual expenditure, with the revised estimate for 2025–26 pegged at ₹17,000 crore, continuing a declining trend despite unchanged budget estimates.
Schemes aimed at social justice remain marginalised. Even as caste atrocities, land dispossession and social deprivation intensify, most schemes for Scheduled Castes and Scheduled Tribes receive barely 0.0005 per cent of total central sector expenditure. Key programmes—including post-matric scholarships, PM-AJAY, ST development schemes, Mission Vatsalya and Mission Shakti—together account for just 0.01 per cent of total spending.
Education and Health: Persistent Neglect
Despite repeated rhetoric around the National Education Policy, the allocation for education in the budget is ₹1,39,289 crore—only 0.35 per cent of GDP, based on the government’s own projections. Allocations for Samagra Shiksha and PM-SHRI remain stagnant, reflecting what it called “policy posturing without financial commitment”.
In the health sector, the PM Swasthya Suraksha Yojana allocation has been reduced from ₹2,200 crore to ₹2,005 crore. Other major health schemes have seen no increase, while revised estimates remain lower than budget estimates, indicating under-utilisation amid a deteriorating public health system.
‘Empty Promises Amid Crisis’
Reacting to Prime Minister Narendra Modi’s assertion that the budget advances India’s ambition to become the world’s third-largest economy, the AIAWU said the claims are detached from ground realities. It pointed out that the Economic Survey 2025–26 itself warns of global economic fragility and a possible financial crisis, yet the budget makes no serious attempt to address income inequality, unemployment, agrarian distress or rising living costs.
Calling the budget “an assault on the rights and livelihoods of agricultural workers and rural poor,” the All India Agricultural Workers Union demanded a rollback of VB-GRAM(G) and a reversal of what it termed the BJP government’s anti-worker, anti-farmer economic policies.
