Garib Kalyan Anna Yojana extended: Here's the fiscal impact

The Narendra Modi government has decided to extend the Pradhan Mantri Garib Kalyan Anna Yojana till Diwali in the wake of the second COVID-19 wave in the country. Additional spend on the scheme is seen at around Rs 70,000 crore.

In the last financial year in the month of March, the government did repay a very large part of the pending food subsidy and that number is approximately around Rs 60,000 crore.

The overall additional cost could be around Rs 1,30,000 crore but if you adjust for the arrear payment that has already happened last year, the actual outgo from the FY22 budget is lower. So, Rs 70,000-80,000 crore could be the additional cost.