New Delhi: Faced with a drought-like situation and high food prices, the government today announced a Rs 1,000 crore scheme to boost irrigation and also set up Rs 500 crore price stabilisation fund to rein in food inflation. In his maiden Budget speech, Finance Minister Arun Jaitley retained the agriculture credit target of Rs 8 lakh crore for this fiscal set in the interim Budget.

He also said the current scheme of interest subvention of 3 per cent for timely repayment of farm loans will continue. Expressing concern over huge farm lands still dependent on monsoon, Jaitley said "there is a need to provide assured irrigation to mitigate risk."