PKGKAY Scheme: No More Free Food Grains After September
- 26-Jun-2022
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New Delhi: In March 2022, the Indian government extended its Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) or free foodgrain scheme by six months, till September. The scheme, originally started during the Covid-19 pandemic, provides 5 kg free rice or wheat and 1 kg whole chana per person per month to over 80 crore people. This is in addition to the subsidised ration under the National Food Security Act.
But Finance Ministry has flagged red flags for the government of India. According to a report, the Department of Expenditure has asked the Ministry to either stop the scheme in September or to make major tax cuts in order to stabilise the fiscal position of the government.
During her Budget 2022 speech, Finance Minister Nirmala Sitharaman lowered the food subsidy bill for FY23 to Rs 2.07 lakh crore from Rs 2.86 lakh crore last year. Till September, India’s subsidy bill is expected to touch Rs 2.87 lakh crore, overshooting the budget. If it goes for 6 more months, the bill may even rise to Rs 3.7 lakh crore,
