New Delhi: Finance Minister Piyush Goyal on Friday said farmers will be provided Rs 6,000 per year in three installments under a scheme to be fully funded by the central government.

Presenting the Interim Budget for 2019-20 in the Lok Sabha, Goyal sought to address some of the distress that the farm sector has been facing.

He said the government will provide Rs 6,000 per year to farmers “in three installments” and it will be “fully funded by the central government”. The direct cash transfer scheme will be given to farmers who own land equal to less than 2 hectares.

The move will benefit 12 crore farmers at an estimated cost of Rs. 75,000 crore.

Allocation to MNREGA has been hiked to Rs 60,000 crore for 2019-20, said Goyal, who stepped in as interim finance minister after Arun Jaitley had to fly to New York for medical treatment.

He further said the government had spent Rs 1.7 lakh crore to supply food grains at cheaper price to poor in 2018-19 as against Rs 92,000 crore in 2013-14.

In place of rescheduling of crop loans, all farmers severely affected by severe natural calamities will get 2 per cent interest subvention and additional 3 per cent interest subvention upon timely repayment, he added.