Maharashtra has become the first state in India to qualify for the release of the second installment under the Rashtriya Krishi Vikas Yojana (RKVY) for the current financial year. Union Minister of Agriculture and Farmers Welfare, Shri Shivraj Singh Chouhan, congratulated the Maharashtra state government after it achieved over 75% overall fund utilization within the stipulated timeframe. Following this milestone, the Ministry of Agriculture and Farmers Welfare initiated the process to release the second installment amounting to ₹335 crore to accelerate agricultural development projects across the state.
The Union Ministry of Agriculture and Farmers Welfare announced that Maharashtra has qualified for the release of the second installment of funds under the Rashtriya Krishi Vikas Yojana (RKVY). The state achieved this distinction by utilizing over 75% of the initial allocation within the mandated timeframe. Union Agriculture Minister Shri Shivraj Singh Chouhan praised the state's administrative efficiency and announced the release of ₹335 crore as the second tranche.
The announcement was made in July 2026 by the Ministry of Agriculture and Farmers Welfare in New Delhi, referring to fund utilization across agricultural districts in Maharashtra. This development marks a critical benchmark for state-level execution of central agricultural schemes across India.
1. Allocation & First Tranche: Central government allocates annual RKVY funds to states, releasing the first installment at the start of the financial year.
2. Project Execution: States deploy funds across approved sub-schemes including mechanization, soil health, crop diversification, and infrastructure.
3. Utilization Threshold: To trigger the second tranche, states must utilize at least 75% of available funds and submit utilization certificates (UCs).
4. Validation & Release: The central ministry verifies financial and physical progress reports before approving the remaining funds, such as the ₹335 crore for Maharashtra.
India’s decentralised agricultural planning via RKVY contrasts with heavily centralized farm subsidy models seen in East Asia or the direct revenue support models of the European Union's Common Agricultural Policy (CAP). RKVY provides state-level flexibility comparable to federal agricultural grant systems in Canada and Australia.
Core Concept: Centrally Sponsored Schemes (CSS) & RKVY Architecture
Q1. Which state became the first in India to qualify for the second installment of Rashtriya Krishi Vikas Yojana (RKVY) funds by utilizing over 75% of allocated funds? [Easy]
A) Punjab
B) Gujarat
C) Maharashtra
D) Uttar Pradesh
Answer: C
Explanation: Maharashtra achieved over 75% fund utilization within the stipulated time, becoming the first state to qualify for the second RKVY installment of ₹335 crore.
Q2. What is the mandatory minimum percentage of fund utilization required by a state to unlock subsequent tranches under RKVY? [Easy]
A) 50%
B) 60%
C) 75%
D) 90%
Answer: C
Explanation: States must utilize at least 75% of previously released RKVY funds to become eligible for the next installment.
Q3. Under the Seventh Schedule of the Indian Constitution, 'Agriculture' is listed under which of the following lists? [Moderate]
A) Union List (List I)
B) State List (List II)
C) Concurrent List (List III)
D) Residuary Powers
Answer: B
Explanation: Agriculture is Entry 14 in List II (State List) of the Seventh Schedule, making it primarily a state responsibility supported by central schemes.
Q4. What is the standard Center:State funding pattern for the Rashtriya Krishi Vikas Yojana in general category states? [Moderate]
A) 50:50
B) 60:40
C) 75:25
D) 90:10
Answer: B
Explanation: RKVY is a Centrally Sponsored Scheme with a 60:40 funding ratio for general states and 90:10 for Northeastern and Himalayan states.
Q5. Which constitutional article empowers the Union Government to provide discretionary financial grants to states for Centrally Sponsored Schemes like RKVY? [Moderate]
A) Article 275
B) Article 280
C) Article 282
D) Article 300
Answer: C
Explanation: Article 282 permits the Union or a State to make discretionary grants for any public purpose outside statutory transfers under Article 275.
Q6. Consider the following statements regarding the State Level Sanctioning Committee (SLSC) under RKVY: [Tricky]
1. It is chaired by the Union Minister of Agriculture.
2. It has full authority to approve state-specific projects under the RKVY framework.
Which of the statements given above is/are correct?
A) 1 only
B) 2 only
C) Both 1 and 2
D) Neither 1 nor 2
Answer: B
Explanation: SLSC is chaired by the Chief Secretary of the respective State (not the Union Minister) and possesses authority to approve projects within scheme guidelines.
Q7. Statement 1: Union Territories receive 100% funding from the Central Government under the RKVY framework. [Tricky]
Statement 2: RKVY is classified as a Central Sector Scheme rather than a Centrally Sponsored Scheme.
Which one of the following is correct?
A) Both statements are true and Statement 2 explains Statement 1.
B) Both statements are true but Statement 2 does not explain Statement 1.
C) Statement 1 is true, but Statement 2 is false.
D) Statement 1 is false, but Statement 2 is true.
Answer: C
Explanation: UTs receive 100% central grant funding under RKVY, but RKVY is a Centrally Sponsored Scheme (CSS), not a Central Sector Scheme.
Q8. Which body originally passed the resolution in 2007 leading to the creation of the Rashtriya Krishi Vikas Yojana? [Tricky]
A) NITI Aayog
B) Finance Commission
C) National Development Council (NDC)
D) Commission for Agricultural Costs and Prices (CACP)
Answer: C
Explanation: RKVY was launched in 2007 following a decision taken at the 53rd meeting of the National Development Council (NDC).
PYQ 1:
With reference to the Rashtriya Krishi Vikas Yojana (RKVY), consider the following statements:
1. It allows states the flexibility to choose agricultural projects based on District Agriculture Plans.
2. The entire financial assistance under RKVY is borne 100% by the Central Government across all Indian states.
Which of the statements given above is/are correct?
A) 1 only
B) 2 only
C) Both 1 and 2
D) Neither 1 nor 2
Answer: A
Explanation: Statement 1 is correct because RKVY is decentralized and plan-driven. Statement 2 is incorrect because general states follow a 60:40 financial sharing pattern.
PYQ 2:
Consider the following statements regarding agricultural governance in India:
1. Agriculture is listed under the Concurrent List of the Seventh Schedule.
2. Discretionary grants for Centrally Sponsored Schemes are made under Article 282 of the Constitution.
3. Rashtriya Krishi Vikas Yojana was rebranded as RKVY-RAFTAAR in 2017 to focus on agribusiness incubation and infrastructure.
Which of the above statements is/are correct?
A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2 and 3
Answer: B
Explanation: Statement 1 is incorrect because Agriculture is in the State List (List II), not the Concurrent List. Statements 2 and 3 are correct.
PYQ 3:
Assertion (A): Centrally Sponsored Schemes like RKVY require states to achieve specific fund utilization benchmarks before subsequent tranches are released.
Reason (R): Financial discipline and timely execution ensure that allocated capital leads to real asset creation without fiscal hoarding.
Select the correct answer using the code below:
A) Both A and R are true and R is the correct explanation of A.
B) Both A and R are true but R is NOT the correct explanation of A.
C) A is true but R is false.
D) A is false but R is true.
Answer: A
Explanation: Both statements are true and Reason R correctly explains why performance thresholds like the 75% rule exist in public finance management.
Question 1 (150 words): Performance-linked fund disbursements under Centrally Sponsored Schemes can significantly enhance governance and project execution in the agriculture sector. Discuss in the context of the Rashtriya Krishi Vikas Yojana (RKVY).
Performance-linked fund release mechanisms serve as an effective tool for ensuring fiscal accountability and administrative efficiency in public expenditure. Under Centrally Sponsored Schemes like the Rashtriya Krishi Vikas Yojana (RKVY), conditioning subsequent fund tranches on mandatory benchmarks—such as Maharashtra achieving over 75% fund utilization to unlock a ₹335 crore second tranche—prevents fund parking and delays in rural asset creation.
In agriculture, where seasonal timelines dictate project outcomes, administrative delays lead to missed cropping windows and underutilized infrastructure. By combining performance incentives with decentralized execution via District Agriculture Plans, RKVY empowers states to address regional micro-climatic priorities while adhering to strict financial discipline tracked through systems like PFMS.
To further optimize this model, the Center should pair strict utilization targets with technical capacity-building for weaker state administrations. This balanced approach ensures that fiscal rigour promotes timely public capital investment without penalizing states facing structural implementation bottlenecks.
Question 2 (250 words): Examine the structural framework of the Rashtriya Krishi Vikas Yojana (RKVY). How does it reconcile the constitutional division of powers regarding agriculture with the need for Union-level policy coordination?
The Indian Constitution places 'Agriculture' under Entry 14 of the State List (Seventh Schedule), designating states as the primary authorities for agricultural development. However, achieving national food security, supply chain resilience, and modern technological adoption requires strategic Union-level coordination and financial backing. The Rashtriya Krishi Vikas Yojana (RKVY) acts as a vital bridge reconciling this constitutional mandate with federal development priorities.
RKVY operates as a Centrally Sponsored Scheme (CSS) funded under Article 282 (Discretionary Grants), featuring a 60:40 cost-sharing pattern between the Center and general states. Structurally, it respects state autonomy by allowing State Level Sanctioning Committees (SLSC), chaired by State Chief Secretaries, to approve specific projects aligned with local District Agriculture Plans (DAPs). This decentralization allows states to tailor investments into local needs like micro-irrigation, soil health, or post-harvest storage.
Simultaneously, the Union Ministry of Agriculture maintains policy alignment by setting broad framework parameters, monitoring performance through real-time financial portals, and enforcing performance thresholds—such as requiring a 75% fund utilization rate before releasing subsequent tranches like Maharashtra's recent ₹335 crore grant.
However, challenges remain, including delayed state matching share contributions and uneven administrative capacity across states. To strengthen cooperative federalism in agriculture, the framework should incorporate flexible matching timelines during climate shocks and expand incentive grants for top-performing states. RKVY demonstrates that decentralized planning combined with structured central oversight can successfully harmonize state constitutional jurisdiction with national agricultural growth targets.